New Low Cost Carrier May Take Off Soon
A new budget airline is reported to have received conditional approval to begin scheduled services, starting with two Airbus A320 aircraft. (Airbus pic)PETALING JAYA: A newly-established budget airline, led by a former civil aviation official and two industry veterans, has reportedly received conditional approval for a licence and may be taking off soon.
The airline is believed to have signed a lease on two Airbus A320 aircraft “at cheap leasing rates” according to an aviation analyst and may set out to challenge the dominance of AirAsia.
Another budget airline is expected to take off later this month with a fleet of turboprop aircraft to service short-range domestic routes such as Subang to Pangkor island.
News about the two airlines was reported by The Edge Markets financial website quoting sources and a stockbroker’s report.
The financial portal said conditional approval for air service licence had been granted for a year, allowing the airline to operate scheduled passenger and cargo services.
It said entrepreneur Goh Hwan Hua is believed to be the financial backer, controlling a 98% stake through two companies, Zillion Wealth Bhd and Trillion Cove Holdings Bhd.
With Goh on the board of directors are former director-general of civil aviation Azharuddin Abdul Rahman; former Malaysia Airports Holdings Bhd chief operating officer Abd Hamid Mohd Ali and former AirAsia group head of sales and distribution Teo Kheng Hock.
The Edge Markets said the other new airline, SKS Airways, would begin with a flight from Subang to Pangkor this month. The airline is owned by Johor-based SKS Group and founded by businessman Alan Sim, it said.
The company has said it will focus on short-range domestic flights to island and coastal resorts. - FMT
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