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Capital A's Tony Fernandes open to Santan becoming Malaysia Airlines' in-flight catering partner

KUALA LUMPUR: Capital A Bhd is open to working with Malaysia Aviation Group (MAG) to provide in-flight meals onboard Malaysia Airlines Bhd through subsidiary AirAsia's airline caterer, Santan.

Capital A chief executive officer Tan Sri Tony Fernandes said the company would also consider entering into a joint venture with MAG to buy the 70 per cent stake the latter does not own in Brahim's Food Services Sdn Bhd (BFS).

"It's a good idea to (do a) joint venture to purchase the 70 per cent stake but no one has called us for that. I would consider a joint venture with MAG. Why not? If they want to.

"If AirAsia and Malaysia Airlines work together, we could take so much business together. That kitchen can go to Thailand, it can go everywhere," Fernandes told Business Times in an interview today.

However, Fernandes said it depends on the price of the stake. The RM129 million, excluding any goodwill that was reported by the New Straits Times on Aug 23, is a high price in his view.

He also said that Capital A has expressed its interest to work with Malaysia Airlines via Santan since before the partnership between the national carrier and BFS ended.

"We have made it known to Malaysia Airlines that we could provide them food long time ago," he said.

Fernandes also disputed that BFS is a monopoly in the airline catering market as there are other in-flight meal caterers such as Santan and Pos Aviation Sdn Bhd.

BFS is the airline catering unit of Brahim's Holdings Bhd.

The company had ended their 26-year partnership with Malaysia Airlines on Aug 31.

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