SKS Airways

[JuliusWong 0]

4 hours ago, jani said:

Latest rumor is that the new CEO has also resigned..

https://www.nst.com.my/business/corporate/2023/11/980279/sks-airways-ceo-dzuleira-abu-bakar-resigns

Quote

SKS Airways CEO Dzuleira Abu Bakar resigns?
By BILQIS BAHARI - November 20, 2023 @ 12:53pm

SEPANG: Drama continues to unfold at new airline SKS Airways Sdn Bhd as its recently-appointed chief executive officer (CEO) Dzuleira Abu Bakar is believed to have resigned.

It is learnt that the former head of Malaysian Research Accelerator for Technology and Innovation had tendered her resignation last week.

Business Times has contacted SKS Airways for comment.

Earlier today, Business Times reported that SKS Airways Sdn Bhd is scrambling to secure funding to pay for the delivery of 10 leased Embraer E195-E2 aircraft and is believed to have halted flight operations to two of the destinations it flies to, Tioman and Redang.

SKS Airways was to start taking delivery of the first Embraer aircraft in January 2024.

It is understood that the delivery of the carrier's first E195-E2 aircraft has been delayed to the second quarter of 2024 from January 2024.

SKS Airways is the second airline to face financing difficulties in the last month.

On October 8, 2023, Business Times reported that, MyAirline Sdn Bhd announced the departure of its CEO Rayner Teo.

A little over a week later, airline abruptly halted operations leaving thousands of passengers stranded.

Woah, could it be possible that Malaysia will witness the collapse of two airlines within a year??

[JuliusWong 0]

Btw, if SKS Airways does collapses, Scoot will remain the only E2 operator in the region. As far as I know Embraer has visited Malaysia and the region many many times, and they are/were hoping to sign up more airlines for its E2 family. With only nine E2 operating in the region, I am not sure if Embraer is willing to invest its own MRO company, maybe SIA Engineering can take it up.

[Craig 0]

5 hours ago, jahur said:

If the SKS e jet program collapses it may derail part of the gov's plan on SZB unless MAG is willing to stay on and follow up its plan.

The whole SARP banked on SKS and MAG's SZB plans? I'd have thought they invited AK/OD along as well. 

5 hours ago, Pall said:

Doubt MAG is willing to invest in SZB. Whatever announcements made before for SZB jet ops by MAG was merely running on the hype made by govt to allow jet ops from the city airport. Operating from SZB to routes already operated by MAB from KUL might be seen as cannibalism. The economics of scale might not work.  

Fares ex-SZB are generally 20-50% higher for the same airline group ex-SZB. And let's not forget other regional carriers who may be interested to serve SZB as an O&D (SQ Group comes to mind).

[jahur 0]

1 hour ago, Craig said:

The whole SARP banked on SKS and MAG's SZB plans? I'd have thought they invited AK/OD along as well. 

Fares ex-SZB are generally 20-50% higher for the same airline group ex-SZB. And let's not forget other regional carriers who may be interested to serve SZB as an O&D (SQ Group comes to mind).

They did but it seems AK is waiting it out. As for OD they have no interest in regional jet operations. Currently MAG's SZB regional jet operation will not even involve FY. If SKS exits that means theres vacant space for another half. Only issue pulling back now is the reliability issue pertaining the PW leaps affecting both a220 and e2s.

[Craig 0]

8 minutes ago, jahur said:

They did but it seems AK is waiting it out. As for OD they have no interest in regional jet operations. Currently MAG's SZB regional jet operation will not even involve FY. If SKS exits that means theres vacant space for another half. Only issue pulling back now is the reliability issue pertaining the PW leaps affecting both a220 and e2s.

Sort of makes sense for MH (hopefully not another subsidiary) take over SZB regional jet operations. FY can focus on secondary hubs/routes (ex-PEN/BKI/KCH routes plus KUL-AOR/TGG etc.?) around the country with single cabin planes where as MH will focus on greater KL (KUL & SZB) flights with 2-cabin planes. I don't know how well FY's SZB flights are doing but they are selling it at a very high premium compared to MH's KUL flights. If I have to guess, FY is doing quite decent on SZB-PEN/XSP and maybe KBR.

[JuliusWong 0]

Quote

SKS Airways asks Middle East carriers to fund Embraer E195-E2 lease

By BILQIS BAHARI November 21, 2023 @ 9:33am

KUALA LUMPUR: SKS Airways Sdn Bhd has travelled all the way to the Middle East to seek funding for the lease of 10 Embraer E195-E2 aircraft signed with aircraft lessor Azzora Aviation Holdings.

It is learnt that SKS Airways had approached two giant airlines in Dubai and Jeddah a few weeks ago to become an investor by purchasing a stake in the cash-crunch carrier.

The airline is also believed to have asked Malaysia Aviation Group (MAG) for funds, although MAG and the two Middle Eastern based airlines are not keen to invest.

"The fact that they have gone to these airlines is telling by itself. If they were to be compared with MYAirline Sdn Bhd, MYAirline was in a much better financial position but somewhere along the way they burned a lot of money.

"The announcement of SKS Airways' regional jet plan ties in very nicely with the Subang Airport Regeneration Plan (SARP) announcement. Narrowbody airplanes will also be allowed to fly out of Subang Airport again but who came up with this idea?" the source asked.

https://www.nst.com.my/business/corporate/2023/11/980664/sks-airways-asks-middle-east-carriers-fund-embraer-e195-e2-lease

Hahahahaha? The last statement...... 😂

Edited November 21, 2023 by JuliusWong

[flee 5]

Sounds very much like they signed the lease agreement when they have not even sorted out their finances or business plan. This airline is doomed for failure!

[jahur 0]

SKS Airways seeking investor funding, has approached MAG, say sources

Quote

SKS Airways Sdn Bhd, a new airline that took off in January last year during the Covid-19 pandemic, in recent months has approached a handful of investors — including Malaysia Aviation Group Bhd (MAG), the parent company of Malaysia Airlines Bhd — to become an investor, according to people familiar with the matter. The talks also include a possible stake sale in the young scheduled commercial airline.

While sources would not identify the potential investors that had been approached, they tell The Edge that one of them was MAG, whose cash balance stood at RM5.2 billion as at end-October and is on track to achieve its first full-year net profit, since the airline group was privatised in 2014, this year.

It is understood that MAG is not keen to invest in SKS Airways as the national carrier embarks on another wave of fleet expansion — it is looking to increase both its narrowbody and widebody aircraft.

A spokesman for SKS Airways says it is open to any interest to take up an equity stake in the airline. “We do not have any preset formula for equity participation. When considering such interest, we will lean heavily towards parties with strategic contributions to the airline,” the spokesman says in an email reply to The Edge.

 

[Craig 0]

8 hours ago, jahur said:

SKS Airways seeking investor funding, has approached MAG, say sources

Not surprising. Why would MAG touch SKS. They don't have planes nor routes/slots MH need. The AOC might be something worthy if MH wants another subsidiary but I don't believe they are. They could probably merge with Berjaya Air tho given the latter flies to similar destinations. 

[flee 5]

12 hours ago, Craig said:

Not surprising. Why would MAG touch SKS. They don't have planes nor routes/slots MH need. The AOC might be something worthy if MH wants another subsidiary but I don't believe they are. They could probably merge with Berjaya Air tho given the latter flies to similar destinations. 

MAG already has FY operating out of SZB, why bother with SKS?

[jahur 0]

3 hours ago, flee said:

MAG already has FY operating out of SZB, why bother with SKS?

Believe SKS has also approached OD and AK for stake offering.

Last recall SKS was a proxy investment by the Johor Royal family. If even they could not consistently channel in funds it pretty much shows that running a small airline was never a lucrative thing in Malaysia.

[JuliusWong 0]

1 minute ago, jahur said:

Believe SKS has also approached OD and AK for stake offering.

Last recall SKS was a proxy investment by the Johor Royal family. If even they could not consistently channel in funds it pretty much shows that running a small airline was never a lucrative thing in Malaysia.

The whole drama reminds me of Brazil's Itapemirim Transportes Aéreos. Also started by a bus company, a crony of the previous President of Brazil Jair Bolsonaro, expanded their fleet quickly by adding 20 A320ceos in less than a year of operation (only six managed to be delivered), selling tickets way below cost prices, then came the collapses, supposedly new investors bailed after looking into their account books. First flight June 29, 2021, last flight December 17, 2021. Finally officially collapse on May 5, 2022 when the local regulator revoked its air operator's certificate.

[Craig 0]

55 minutes ago, jahur said:

Last recall SKS was a proxy investment by the Johor Royal family. If even they could not consistently channel in funds it pretty much shows that running a small airline was never a lucrative thing in Malaysia.

Sarawak wants to emulate success of Emirates for MASWings 😬

[Pall 0]

2 hours ago, Craig said:

Sarawak wants to emulate success of Emirates for MASWings 😬

Even AK failed to drive traffic into KCH due to lack of demand. KCH needs to offer a lot more to become the next DXB.