SKS Airways, a new airline that launched in January 2021 during the COVID-19 pandemic, has approached several investors, including Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd. The talks also include a possible stake sale in the young scheduled commercial airline. MAG is not keen to invest in SKS Airways as the national carrier embarks on another wave of fleet expansion, looking to increase both its narrowbody and widebody aircraft. SKS Airways is open to any interest in taking up an equity stake in the airline but does not have any preset formula for equity participation.
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SKS Airways needs funds to pay pre-delivery commitments for aircraft. In May, the carrier signed a 12-year operating lease agreement with US-based aircraft lessor Azorra Aviation Holdings for 10 Embraer E195-E2 jets, with deliveries to begin in January 2024. The airline has secured financing to fund the aircraft leases, engine maintenance, and working capital. However, supply chain constraints faced by the aircraft manufacturer may cause delays in deliveries.
SKS Airways announced that the E195-E2s will form the core of its expansion plans and would be based at Sultan Abdul Aziz Shah Airport (Subang Airport) in Subang, Selangor, making it the first regional jet operator operating out of the airport. The move aligns with Malaysia Airports Holdings Subang Airport Regeneration Plan to transform the airport into a premium city airport and regional aviation hub.
SKS Airways was awarded an air operator's certificate (AOC) by the Civil Aviation Authority of Malaysia in October 2021 and a full air service license (ASL) by the Malaysian Aviation Commission in January last year. SKS Southern has a 40% equity interest in the airline, while SKS Group founder and chairman Alan Sim See Kiong and SKS Airways director Majid Manjit Abdullah each have a 30% stake.
