MAB’s Project Amal to mobilise internally generated fund
KUALA LUMPUR: Malaysia Airlines Bhd’s (MAB) Project Amal, dedicated for haj and umrah pilgrims flying on charter flights, will be mobilising internally generated funds by Malaysia Aviation Group (MAG) to finance its operations, said group chief executive officer (CEO) Izham Ismail.
“It would be fully funded by MAG (MAB’s parent company) and the allocation was on top of the RM6 billion turnaround plan set under Khazanah Nasional Bhd.
“More details on the company’ name, logo and management of Project Amal will be revealed in the fourth quarter of this year or at the latest by first quarter of 2019,” he told reporters at a signing ceremony between MAB and Andalusia Travel and Tours Sdn Bhd on the latter’s charter flights for its registered pilgrims yesterday.
MAB had said that there was significant interest shown by new investors wanting to invest into the rebranded Project Amal which was previously known as Project Hope under former CEO Peter Bellew.
MAB and Andalusia yesterday signed a three-year agreement, which will see Malaysia Airlines providing up to 200 charter flights for its haj and umrah pilgrims registered with Andalusia to Madinah and Jeddah starting this year.
It was previously reported that the national carrier was aiming for a 10 per cent market share of flying Muslim pilgrims on charter flights to Saudi Arabia from the current seven per cent.
Izham said with the setting up of Project Amal, the new airline is expected to explore more opportunities for Muslim communities from
It would be fully funded by MAG (MAB’s parent company) and the allocation was on top of the RM6 billion turnaround plan set under Khazanah Nasional Bhd. Izham Ismail, MAB CEO
Indonesia, as well as China.
“The signing is between MAB and Andalusia. However, once the establishment of Project Amal is completed, the agreement would be novated from Malaysia Airlines to Project Amal.
“However, I would like to clarify that Project Amal will be treated as MAB’s subsidiary, similarly as others under our company. There is no such thing as cannibalising MAB business,” he added. Meanwhile, Andalusia director Ida Riswana Idris said the three-year agreement entailed charting 237 flights worth RM315 million. “The agreement is expected to allow 114,000 passengers to fly to Madinah or Jeddah starting this year until 2021. To date, 29,000 of our 62,000 pilgrims had flown with Malaysia Airlines. “Last year, 1.74 million foreign pilgrims landed in Jeddah and Madinah airports. Of them, more than 570,000 were from Indonesia, Pakistan and India,” she added. — Bernama