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KUALA LUMPUR (March 22): National carrier Malaysia Airlines Bhd has been named as the official commercial airline of UK football club Manchester United in a multi-year partnership.
While the details of the partnership could not be disclosed due to a confidentiality agreement, Malaysia Aviation Group (MAG) group managing director Datuk Captain Izham Ismail said the partnership is beyond just a commercial strategic partnership.
“Manchester United is a respected team, with strong belief. They carry the same values as Malaysia Airlines. So it's beyond commercial — it's also the non-commercial values. That's why to me personally, Manchester United will help our team members in MAG to achieve our ambition,” he told reporters here at a press conference on Friday.
MAG, which is wholly owned by sovereign wealth fund Khazanah Nasional Bhd, is the parent company of Malaysia Airlines following the airline’s reorganisation in 2014.
Manchester United chief executive officer of alliances and partnerships Victoria Timpson said the club has a long-standing and proud connection with Malaysia. The English Premier League club has three official Malaysian supporters' clubs, with the Kuala Lumpur branch boasting one of the club's largest supporter communities.
“We are very pleased to welcome Malaysia Airlines to our family of partners, and look forward to sharing with our global fans its trusted, welcoming and hospitable service,” she said.
However, the Malaysia Airlines logo will not appear on Manchester United’s playing kit. Instead, both parties will explore other marketing activations that would be mutually beneficial.
Izham pointed to the fact that Manchester United has a 577 million-strong fanbase in the markets that Malaysia Airlines serves, and as such, even with a conversion rate of 0.3% that would turn to the airline, it would already be a good return on investment for the company.
“With a conversion rate of maybe, in the worst scenario, 0.3%, you do the maths and see the potential of 577 million people converting to go for Malaysia Airlines,” he said.
MAG is poised for a comeback, as the aviation group recorded an annual net profit in 2023 for the first time since 2014. Earnings stood at RM766 million in 2023, compared with a net loss of RM344 million in 2022, driven by robust traffic in the premium segment, active capacity management and stronger yield for the group's passenger segment.
MAG also attributed the improved performance to its intensified international network flow and deep partnership collaborations.
The airline itself achieved an operating profit of RM1.099 billion in 2023, more than 13 times higher than the RM80 million it recorded in 2022, attributable to higher capacity and robust yield amid strong passenger travel demand.