Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on November 15, 2019

KUALA LUMPUR: Malaysia Airlines Bhd said yesterday it had signed a memorandum of understanding (MoU) with the entrepreneur development ministry to implement a vendor development programme (VDP) which is aimed at cutting cost attributed to non-critical parts by 15%.

Malaysia Airlines said in a statement the VDP is also aimed at decreasing turnaround time and boosting operational efficiency.

“Malaysia Airlines will function as an anchor company and will support the programme by implementing the VDP starting with engineering and maintenance and AeroDarat services. There will be five initial pilot projects for the VDP programme within Malaysia Airlines, mainly in sourcing additive manufacturing, carpets, seat upholstery, aircraft cleaning materials and chemicals.

“An additional benefit of sourcing locally would be that Malaysia Airlines would be able to decrease its exposure to foreign exchange volatility,” the company said.

Malaysia Airlines group chief operations officer Ahmad Luqman Mohd Azmi said the company is already an important economic enabler for the country.

“By signing the MoU with the ministry, we are also able to create a multiplier effect within the domestic economy by developing an ecosystem for local vendors to support their businesses.

“The VDP also helps to empower local companies to propel their businesses in Malaysia’s airline industry, which is predominantly serviced by foreign companies,” Ahmad Luqman said.

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