SMTrack to venture into airline biz

By BERNAMA / Graphic By TMR

SMTrack Bhd, which provides radio frequency identification (RFID) solutions, is looking to venture into the low-cost airline business.

On Saturday, it signed a memorandum of understanding (MoU) with Dexma Express Sdn Bhd, the official general sales agent of Garuda Indonesia’s subsidiary Citilink, for potential investment in the upcoming Citilink Malaysia operation.

SMTrack is proposing to acquire a 60% stake in the operation for RM2.8 million.

Dexma will change its name to Citilink Aviation Malaysia Sdn Bhd and obtain an air operator certificate and other licences or permits required, a representative from SMTrack, Jay Hoo Ying Wah, told reporters after the signing ceremony.

The share sale agreement, meanwhile, is expected to be concluded within three months from the date of the MoU signing.

Citilink Aviation is expected to start operation in the second quarter of 2019, providing lowcost flights especially to customers flying within the Asean region, Hoo said.

“Our first route will be from Kuala Lumpur to Phnom Penh, Cambodia. Outside the Asean countries, we will soon target China,” he said.

Meanwhile, Dexma director, Alvin Heng Jee Zhi, said passengers flying with the airline would enjoy a free 10kg baggage allowance and meals.

“We are not only competing in providing affordable flight tickets, but also better service. We are going to be a new player in Malaysia but we are experienced in the Indonesian market,” he said.

Jakarta-based Citilink was established in 2001 as a lowcost brand of Garuda Indonesia. — Bernama