The Aviation regulator, Civil Aviation Authority of Malaysia (CAAM), has suspended the air operator’s certificate (AOC) of SKS Airways Sdn Bhd for 90 days until Jan 21, 2025.
The regional carrier is owned by Johor-based SKS Group of companies, that's engaged in realestate development, retail, hospitality and credit finance in Malaysia.
SKS Airways, with the call sign Southern Tiger, had obtained its AOC in the year 2021, starting with a fleet consisting of two DHC 6-300 Twin Otter planes.
CAAM CEO Datuk Captain Norazman Mahmud confirmed that the temporary suspension was issued on October 22, 2024 as SKS Airways “did not satisfy the AOC requirements”.
SKS Airways’ AOC is due to expire only on Sept 30, 2025, while its air service licence (ASL), which is issued by economic aviation regulator Malaysian Aviation Commission (Mavcom), is due to expire on Dec 31. Airlines require both the ASL and AOC to operate a scheduled passenger or cargo airline business.
Norazman says SKS Airways will not be able to operate during the 90-day suspension but must work to “correct its deficiencies”, after which CAAM will carry out another safety audit to reassess the airline’s capability and then decide whether to lift the suspension, extend it beyond the 90 days or revoke SKS Airways’ AOC.
“Revocation means that they have to reapply and go through the whole AOC approval process again, which involves a longer time,” he says.
In May last year, SKS Airways had signed a 12-year operating lease agreement with US-based aircraft lessor Azorra Aviation Holdings LLC for 10 new Embraer E195-E2s.
The airline was due to take delivery of the first E195-E2 from Azorra in June. The new aircraft were supposed to form the core of its expansion plans out of Sultan Abdul Aziz Shah Airport in Subang, Selangor, (Subang Airport), as well as to replace the two ageing 19-seater DHC-6-300 Twin Otter turboprops in its fleet.
However, according to a July report by The Edge, quoting sources, Azorra has approached potential lessees to take on the narrow-body jets abandoned by SKS Airways after the airline failed to secure the desired number of landing and take-off slots at the airport.
SKS Airways was one of six airlines that were slated to resume jet operations out of Subang Airport in August. So far, Firefly, AirAsia, Batik Air Malaysia, Indonesia’s TransNusa Air Services and Singapore’s Scoot have restarted their narrow-body passenger services.
SKS Airways, as a company, was incorporated in November 2017 and started its operation in January 2022 during the Covid-19 pandemic, aiming to serve island holiday destinations in Malaysia such as Pangkor, Tioman and Redang islands. However, its flights have been suspended since October 2023.
Details in the Companies Commission of Malaysia (SSM) indicate that SKS Airways’ net loss reached to RM32.28 million for the financial year ended Dec 31, 2023 (FY2023) from RM23.95 million in the previous year. While carrier's Revenue increased 3.9% to RM3.21 million from RM3.09 million, the accumulated losses stood at RM85.67 million by December 2023.
As per the SSM filing, Cindi Sim, the group managing director of SKS Group, has 59.85% equity interest in SKS Airways, while SKS Airways director Datuk Majid Manjit Abdullah, has a 40.15% stake.
With no plans announced yet, the fate of the SKS Airways remains uncertain. Apart from complying with the AOC requisites, its ASL from Mavcom will be scrutinized prior to scheduled renewal next year.
In another development, Kuala Lumpur-based Myballoon Adventure Sdn Bhd, the first firm that obtained an AOC for commercial hot air balloon rides, saw its permit suspended in August.
