MABE chief operating officer Eke said MABE is profitable but declined to divulge the numbers.
SEPANG: MAB Engineering Services Sdn Bhd (MABE), which is the maintenance, repair and overhaul (MRO) services arm of Malaysia Aviation Group Bhd (MAG), has ambitions to be a global MRO player, but it will remain focused on catering to the airlines of its parent company.
“We used to operate as engineering and maintenance, and today we are a wholly-owned subsidiary of MAG.
“So, it entails a different mindset. What got us here will not get us there, our dream is to be a preferred global MRO provider,” MABE chief operating officer Eke Nazri Rahim said at the company’s first anniversary with the launch of a suite of initiatives, including the country’s first aircraft maintenance digital certification yesterday.
In May 2023, Malaysia Airlines Bhd’s (MAB) engineering and maintenance services arm underwent a reorganisation, which saw the incorporation of MABE, a wholly owned subsidiary of MAG.
“We are an airline-affiliated MRO, our core existence is to serve MAG customers. We also have third-party customers. In terms of ratio, we are doing 30% for third parties while 70% is for MAG.
“Malaysia Airlines keeps inducting its aircraft. The composition will be maintained at 70:30 as we want to remain focused.
“Our top priority is serving our parent company,” he added.
According to MAG, it plans to integrate 12 new aircraft into its fleet this year in line with its fleet modernisation and growth strategy.
However, it may face some challenges in getting the planes according to the delivery schedule as aircraft manufacturers struggle to meet aircraft deliveries worldwide.
By 2033, MAG is looking at operating a fleet consisting of 50 narrow-body and 50 wide-body aircraft.
In terms of contribution, MABE’s third party segment accounted for 24% of its revenue in the financial year ended Dec 31, 2023.
Eke said MABE is profitable but declined to divulge the numbers.
“While much has been done, there is a greater journey ahead of us. The analogy is that we just arrived at the base camp.
“There is a mountain ahead of us that we need to scale.
“As such, we have laid down our strategic initiatives.
“This is key for us to remain resilient and profitable and for us to be known in this industry,” Eke added.
On how MABE aims to capture a bigger slice of the MRO market with limited capacity, Eke said, “At Hangar 4, we are going to operate three to four production lines, depending on the configuration. Let’s say we put two ATRs (turboprop aircraft), we can put another (Boeing) 737 and another widebody there. With this additional capacity, we are on the right footing to acquire more (business).
“We have entered an agreement with Impeccable Vintage Properties (IVP) under Khazanah for us to lease the hangar. With that, we are able to perform not only ATRs but other narrow-body plus wide-body aircraft,” Eke said.
Last September, MABE signed a deal with IVP, a wholly-owned subsidiary of Khazanah Nasional Bhd to lease Hangar 4 airframe maintenance facility located at Sultan Abdul Aziz Shah Airport in Subang .
MABE has nine production lines in Hangar 5 and 6 in Sepang, two production lines in Hangar 1 in Subang and one production line in Kota Kinabalu, Sabah. The hangar in Subang is for ATR operations.
Meanwhile, as its business grows, MABE needs to continuously enhance its efficiency and security.
According to Eke, achieving the country’s first aircraft maintenance digital certification is a milestone for the company as it not only signifies a huge leap in efficiency and security for MRO activities but sets the foundation for the implementation of the Aircraft Electronic Tech Log system which will be adopted by MAG subsidiaries Malaysia Airlines, Firefly and MASwings.
He added that the integration of digital signatures into MABE’s mobility solution enhances operational efficiency and reliability as engineering personnel are able to authenticate their actions and approvals digitally, removing the need for manual signatures and paper-based documentation.
“As part of MABE’s’ digitalisation initiative in support of MAG’s Long Term Business Plan 2.0, this project aims to enhance efficiency and accuracy in delivering our engineering and maintenance services.
“Working closely with the Airworthiness Division of the Civil Aviation Authority of Malaysia, we are bringing changes to the current regulatory requirement to enable the implementation of the first-ever aircraft maintenance digital certification in Malaysia.
“The success will be a cornerstone in moving Malaysia’s aircraft maintenance industry into paperless aircraft certification, as well as strengthen our position as the MRO provider of choice,” Eke said.
He added that MABE set a new benchmark as it managed to improve its turnaround time for its customer.
“Traditionally, we used to deliver the aircraft in 15 days for a 737 aircraft. Now we reduced it by 40% (to deliver in nine days).
“Being a maintenance service provider, we need to fulfill our service based on the demand from our customer. Aircraft only make money when they are in the air. As such, we embarked on pilot projects. Let us achieve impossible targets. From 15 days, we want to try to reduce it. The impossibility will change the way we work,” he said.
