MMAG Holdings Bhd has received approval to provide aircraft leasing business from a Labuan-domiciled company and ground handling licence.

In an exchange filing today (Nov 1), the integrated supply chain management company said its aviation division, MMAG Aviation Consortium Sdn Bhd (MAC), has obtained approval from the Labuan Financial Services Authority (LFSA) to set up a fully-owned subsidiary in Labuan, called MMAG Skyfleet Ltd, to handle aircraft leasing and asset management.

The approval will allow MMAG Skyfleet to engage in the leasing of aircraft from the lessors and to manage the leasing of these assets within the aviation arm of the group, it said.

MMAG is a full-fledged integrated supply chain management company that provides first, mid and last-mile delivery services in Malaysia and across Asia with full connectivity by air, sea and land.

In another exchange filing on Wednesday (Oct 30), MMAG said its associate company has today been granted the ground handling licence by the Malaysian Aviation Commission (Mavcom).

It said the licence was granted to Menzies Aviation (Malaysia) Sdn Bhd, a 49% owned associate of the group in a joint venture with Menzies Malaysia Sdn Bhd under MMAG’s aviation arm.

The licence is valid for a period of 12 months until Oct 31, 2025 and is renewable on a yearly basis.

With the license, it said Menzies Aviation will commence its ground handling operations in Malaysia to provide a comprehensive suite of services such as passenger handling, aircraft services, ramp handling, and cargo operations.

It said the commencement of Menzies Aviation’s operations enables the group to leverage Menzies Group’s extensive global network and resources, ‘significantly expanding’ its air freight and cargo terminal customer base, enhancing KLIA’s status as a regional hub and extending its market reach into new regions.

MMAG Holdings share price was flat at 28.5 sen (52-week high/low: 40 sen/ 8 sen) on Friday, giving it a market capitalisation of RM670 million. – TMR