KUALA LUMPUR, Nov 14 -- Malaysia Airlines aims to reduce non-critical parts and components cost by 15 per cent via a Vendor Development Programme (VDP) under a Memorandum of Understanding (MOU) with the Ministry of Entrepreneur Development (MED).
The VDP is also expected to lessen turnaround time and help boost operational efficiency, said group chief operations officer, Ahmad Luqman Mohd Azmi.
“An additional benefit of sourcing locally is that Malaysia Airlines will be able to decrease its exposure to foreign exchange volatility,” he said in a statement today.
VDP is a programme implemented by the government to boost the development of small and medium enterprises.
The MoU was signed by Ahmad Luqman on behalf of Malaysia Airlines Group and MED secretary-general Datuk Wan Suraya Wan Mohd Radzi.
“Malaysia Airlines is already an important economic enabler for the country. By signing the MoU with MED, we are also able to create a multiplier effect within the domestic economy by developing an eco-system for local vendors to support their businesses,” said Ahmad Luqman.
He added that the VDP also helps to empower local companies by spurring their businesses in Malaysia’s airline industry, which is predominantly serviced by foreign companies.
According to the statement, Malaysia Airlines will function as an anchor company and will implement the programme starting with its engineering, maintenance and AeroDarat services.
The VDP will feature five pilot projects within Malaysia Airlines, mainly in sourcing additive manufacturing, carpets, seat upholstery, aircraft cleaning materials and chemicals.