Photo: A Brahim's catering truck next to a Malaysia Airlines airplane in Kuala Lumpur, Malaysia. Muhd Imran Ismail/Shutterstock

Halal Industry

Malaysia’s Brahim’s exploring non-aviation prospects as pandemic halts in-flight catering

Malaysia’s Brahim’s SATS Food Services (BSFS) has started to explore non-aviation sectors as its in-flight business continues to be suspended by the pandemic.

The company, a subsidiary of Brahim’s Holdings Berhad, is the principal in-flight catering service provider of Kuala Lumpur International Airport, KLIA2 and Penang International Airport. It also serves 35 international airlines with Malaysia Airlines as its major customer.

Pre-COVID 19 it catered to an average of 230 aircrafts per day and prepared an average of 45,000 to 50,000 in-flight meals per day from its halal-certified kitchens, it said in a statement on Tuesday (September 1).

BSFS said it “has been struggling” since the announcement of Malaysia’s pandemic lockdown, locally referred to as the movement control order, that started March 18. International flights remain grounded todate.

The company has resorted to cost-cutting measures. “While the international borders remain closed, BSFS production has dropped drastically. With over 1,400 staffs manning the kitchen previously, recent Mutual Separation Scheme (“MSS”) exercise by the company has resulted in the latest number of staffs reducing to only about half. This MSS is expected to significantly manage BSFS cashflows and reduce the losses,” it said.

BSFS’s parent company Brahim’s Holdings Berhad reported a 89.11% plunge in revenue to 8.062 million ringgit ($1.94 million) and losses of 25.321 million ringgit for the three months to June 30.

Its in-flight catering segment earned 6.154 million ringgit, a plunge of 91% from the same three months in 2019.

Brahim’s expects its in-flight catering division to record “an adverse performance for full year 2020”. “Even the prospect on aviation segment remain sceptical and uncertain, any policies or incentives set and announced by the government with regards to the aviation industries will certainly give positive implication to this segment,” it said.

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