Malaysia Aviation Group (MAG) recently implemented Target Operating Model (TOM), which sees MAG operating as a full-fledged operating company (op-co) overseeing Group-level support functions and subsidiaries, which are grouped into three dedicated profit centres, namely Airlines, Loyalty & Travel Solutions, and Aviation Services. “ The new set-up allows MAG to have a more dynamic reporting structure under each profit centre, including dedicated Loyalty & Travel Solutions and Aviation Services functions to drive revenue growth; promoting better synergy as the Group collectively work towards fulfilling its Long-term Business Plan 2.0 (LTBP2.0) aspirations of becoming Asia’s leading travel and aviation services group. While the existing structure has enabled us to be futureproof, we continue implementing a strong and flexible organisational structure that will set the Group up for long-term success,” said Captain Izham Ismail, Group Chief Executive Officer of MAG.
The new operating model will enable MAG to deliver its Long-Term Business Plan 2.0 (LTBP 2.0) in a more cohesive and unified manner, with greater emphasis on transparency and accountability through a clear profit and loss (P&L) reporting structure; empower each vertical to drive business growth; and diversify the Group’s revenue streams beyond its airlines business.
In line with the new structure, the leadership team at the op-co level will continue to lead the Group, supported by the Chief Executive Officers in the respective profit centres.
With the new organisational structure, the MAG senior leadership team has also been enhanced for better reporting across the Group and business verticals.