BGroup to exit aviation business?

[Robin 0]

Berjaya Group (BGroup), a property and gaming outfit, may exit the aviation business as it is in talks with investors to dispose of Berjaya Air.

 

 

Industry sources said BGroup's controlling stakeholder Tan Sri Vincent Tan is talking to a few local and foreign parties including one from Indonesia.

 

Berjaya Air general manager Tan Bee Hock told Business Times that he is not aware of any plans by (Vincent) Tan to sell the aviation business

 

The sources, however, claimed an Indonesian tycoon, who runs several businesses in Malaysia, has expressed an interest to buy the airline.

 

"Berjaya Air, although it complements Berjaya Group's hotels and resorts, is not making as much money. Tan is considering selling the business if there is a good offer," the source said.

 

It is understood that Tan is looking at offers above RM150 million.

 

Tan declined to respond to Business Times queries.

 

Berjaya Air began operations in 1989. It is owned by the BGroup via Berjaya Land Bhd, and was formerly known as Pacific Air Charter.

 

The airline is not earning enough although it flies to a few destinations like Pangkor, Tioman and Redang island, and Koh Samui in Thailand, from the Sultan Abdul Aziz Shah Airport in Subang, Selangor.

 

It also flies to Seletar airport in Singapore from Tioman and Redang.

 

On May 3, all flights to Pangkor were ceased after a decade of air services to the island as the route was not profitable, BGroup had said in a statement.

 

BGroup also is worried that aircraft maintenance for its 48-seater Dash 7s will get more difficult as Bombardier is no longer producing the spare parts.

 

Currently, only the Dash 7s can service most of the routes that Berjaya Air flies to because of the runway length.

 

Berjaya Air currently operates two ATR 72-500 and three Dash 7s. One Dash 7 is under scheduled maintenance.

 

The ATRs are part of the four turboprop planes which Berjaya Air had ordered in 2007 for RM255 million, from southern France-based regional aircraft maker, Avions De Transport Regional. The other two ATRs have not taken delivery.

 

Berjaya Air's Tan Bee Hock said the company has yet to decide if it wants to exercise the option to buy the two remaining ATRs.

[Mike P 0]

They might need to change strategy, offer chartered flights instead of scheduled flights.

[KC Sim 2]

I flew last year on Berjaya Air's Dash 7 from Singapore to Redang ... beyond the novelty of flying on the Dash 7, it was an experience best forgotten.

 

The aircraft's cabin was extremely shabby and looks close to falling apart. It was dirty and looked like the last cleaning session was a long time ago. The windows were so scratched you could not even photograph through it. The camera's automatic focus just could not focus beyond the scratches. When boarding, the crew does not even greet passengers and just stood there like statues at the door. After take-off from Seletar Airport, the crew walked down the aisle with a small tray of wet tissues (I could not ascertain whether it was for me to clean my hands after having touched parts of the cabin or to clean the cabin). Not a word was uttered and off she went to the rear of the plane.

 

I deliberately sat at the rear of the plane just so that I could observe the service delivery - and I need not have bothered because there was no service to deliver. After a few minutes, I heard loud slurping sounds and turned around to see the crew eating her packet rice with some dishes mixed in it. She was eating with her fingers and from the sounds she made, it must have been quite a delicious lunch - or she was just hungry.

 

And yes, all too soon, it was time to land at Redang Airport. And as silently as the crew witnessed our boarding at Seletar Airport, they were similarly silent when we got off. Thankfully the immigration officers at Redang Airport were far more enthusiastic about receiving visitors.

 

Based on this experience, I think it is a great idea that Berjaya Air leaves the aviation scene and let others who are more passionate operate the airline. I can only hope that the service in their resorts is far warmer. And for the record, the one way ticket from Singapore to Redang was close to S$200 and getting my booking confirmed was itself quite an experience. I got the feeling that bookings made by passengers constituted a major nuisance and inconvenience ... on my flight, there were about 30 of us.

 

KC Sim

[Tamizi Hj Tamby 1]

I wonder what will happen to their ATR fleet; Any of you guys remember about Silverfly? I think they should consider about taking over Berjaya Air instead.

[aaronhiew 0]

I flew last year on Berjaya Air's Dash 7 from Singapore to Redang ... beyond the novelty of flying on the Dash 7, it was an experience best forgotten.

 

The aircraft's cabin was extremely shabby and looks close to falling apart. It was dirty and looked like the last cleaning session was a long time ago. The windows were so scratched you could not even photograph through it. The camera's automatic focus just could not focus beyond the scratches. When boarding, the crew does not even greet passengers and just stood there like statues at the door. After take-off from Seletar Airport, the crew walked down the aisle with a small tray of wet tissues (I could not ascertain whether it was for me to clean my hands after having touched parts of the cabin or to clean the cabin). Not a word was uttered and off she went to the rear of the plane.

 

I deliberately sat at the rear of the plane just so that I could observe the service delivery - and I need not have bothered because there was no service to deliver. After a few minutes, I heard loud slurping sounds and turned around to see the crew eating her packet rice with some dishes mixed in it. She was eating with her fingers and from the sounds she made, it must have been quite a delicious lunch - or she was just hungry.

 

And yes, all too soon, it was time to land at Redang Airport. And as silently as the crew witnessed our boarding at Seletar Airport, they were similarly silent when we got off. Thankfully the immigration officers at Redang Airport were far more enthusiastic about receiving visitors.

 

Based on this experience, I think it is a great idea that Berjaya Air leaves the aviation scene and let others who are more passionate operate the airline. I can only hope that the service in their resorts is far warmer. And for the record, the one way ticket from Singapore to Redang was close to S$200 and getting my booking confirmed was itself quite an experience. I got the feeling that bookings made by passengers constituted a major nuisance and inconvenience ... on my flight, there were about 30 of us.

 

KC Sim

 

Like yr words bro, shame on them...Huhu

[BC Tam 2]

Any of you guys remember about Silverfly? I think they should consider about taking over Berjaya Air instead.

Are you serious ?!

Well, we could do with a few laughs now and again I suppose