The objective will be achieved once all 3 pillars of the airline are up and running

by NUR HANANI AZMAN / pic by TMR FILE

MALAYSIA’S latest commercial airline SKS Airways Sdn Bhd expects to be profitable once all three pillars of the airline offering passenger, cargo and charter services are up and running within the next five years.

SKS Airways director Datuk Rohman Ahmad said for passenger services, the group has plans to cover other new but unserved destinations, and based on demands it may increase its frequency for the current routes.

“Besides that, we are looking at diversifying our business into cargo and charter too. A full air service licence (ASL) is required to transport passengers, mail or cargo on a fixed schedule by air between two places, as long as it falls within Malaysia’s borders.

“With that, we plan to diversify our business to cargo and charter, besides passenger services that we just launched on Jan 25, 2022. The cargo business will be a key pillar following the International Air Transport Association’s forecasts of 2021 air cargo revenues to hit record US$175 billion (RM733.25 billion),” he told The Malaysian Reserve in an email interview.

Awarded the ASL by the Malaysian Aviation Commission effective Jan 1, 2022, SKS Airways offers easy access to island hopping with flight commencing between Subang Airport to Pulau Pangkor beginning Jan 26, Subang Airport to Pulau Redang (Jan 31), to Pulau Tioman from Subang Airport and Senai International Airport in the second quarter of 2022.

With its hubs in Subang and Senai, the airline plans to connect Malaysia and beyond to destinations in Asean and southern China.

Plan to Expand the Twin Otter Fleet

Currently, for passenger services, SKS Airways have two DHC6-300 Twin Otter aircraft.

“We have plans in growing the Twin Otter fleet but for now, the two DHC6-300 Twin Otter aircraft are sufficient in serving the three popular island destinations with 12 scheduled flights per day at a full daily capacity of 228 passengers.

“The Twin Otter aircraft, well-known all over the world for toughness and reliability with excellent Short Take Off and Landing capabilities which enables it to land comfortably on short airstrips. The 19-passenger turboprop Twin Otter aircraft is highly manoeuvrable, versatile and one of the most flexible planes ever built,” he said.

When asked on capital expenditures allocated, Rohman, however, was unable to disclose the capital outlay for its commercial airline set-up in line with its policy.

“Unlike any other business, the airline industry has always been very different from other industries, in all markets and in all times and in nature it is capital intensive.

“We have plans in the pipeline to diversify our business to cargo and charter. Since the airline industry also has high fixed costs, attaining economy of scale through various types of operations are vital for our business venture,” he added.

Looking Beyond Omicron

According to Rohman, it is undeniable that it has been tough for the aviation and tourism industry but he foresees that the situation would slowly improve.

“This is also in line with what Transport Minister Datuk Seri Dr Wee Ka Siong highlighted during our launch that they are optimistic about seeing a surge in the airport passenger volume that will grow up to 49 million this year in comparison to 11 million recorded last year.

“Besides that, we are starting small, and that gives us an added edge, agility and flexibility to make swift decisions according to market conditions. For now, we are focusing on the underserved and unserved destinations to capitalise on the domestic demands and this will allow us to also get a head start when travel rebounds,” he said.

Rohman stressed that safety is always the group’s top priority.

“We are committed to strictly follow all guidelines laid out by the Ministry of Health to ensure minimal risks to our passengers and crew.

The Omicron is not only impacting SKS Airways, but the whole aviation and tourism industry.

“One of the advantages of SKS Airways is we are starting small by serving short-haul routes to three popular domestic island destinations,” he added.

SKS Airways offers all-in fares from RM160 one way, and adopts a 3-Tier Fare system which travellers can choose from depending on the destinations and time of bookings. They are SKS Promo, SKS Lite and SKS Plus.

SKS Airways expects to appeal to IT-savvy Gen-Y and Gen-Z individuals, young families and all travellers and island lovers looking for an experience unlike any other for short weekend getaways at popular island destinations within Malaysia.

The company was incorporated on Nov 13, 2017, as a wholly Malaysian owned airline, part of the SKS Group of Cos.

SKS Group was founded in 1983 and presently a multi-disciplined organisation with core businesses that spans across property development, investment holding, hospitality and credit finance in Malaysia and Australia.