ANOTHER local carrier has suspended its limited services as it tries to secure funding to lease more aircraft, New Straits Times reported today.

The daily, quoting sources, said SKS Airways Sdn Bhd was “scrambling to secure funding to pay for the delivery of 10 leased Embraer E195-E2 aircraft”.

It also said the carrier “is believed to have halted flight operations to two of the destinations it flies to – Tioman and Redang”.

SKS Airways was to start taking delivery of the first Embraer aircraft in January 2024 but it has now been delayed to the second quarter of 2024.

Last month, local carrier MYAirlines Sdn Bhd suspended its flight operations suddenly after facing financial problems.

MYAirline’s suspension affected 39 flights servicing local destinations and one international route to Don Mueang Airport with about 5,000 passengers.

Aviation insiders have been quoted in NST as saying that SKS Airways was also facing funding issues.

“If they (SKS Airways) could not secure funding, there would be a high chance that the deal could be off. It’s shaky for them right now, but they’re searching for new funding,” an aviation insider said.

SKS Airways had announced a RM3.9 billion deal in May to lease 10 E195-E2 aircraft from US aircraft lessor Azorra Aviation Holdings.

The airline is expected to commence operations in March next year to neighbouring countries out of Sultan Abdul Aziz Shah Airport, although it had planned to receive its first regional jet in January of the same year.

Another aviation insider said SKS Airways still has not announced any new destinations.

“December is fast approaching but they haven’t announced the destinations that they want to fly to. Regional airports slots at Changi Airport, Soekarno-Hatta International Airport, Don Mueang International Airport and Suvarnabhumi Airport are full and it’s hard for new players to secure a slot in these airports,” the source said.

The report said SKS Airways has stopped operating both of its DHC 6-300 Twin Otter to Redang and Tioman since last month.

Sources said the airline suspended operations to the two islands due to the monsoon season, which is typically from October to March.

However, SKS Airways had continued to fly to Tioman and Redang in November, December, January and February last year.

“It was running every month since launch (in January 2022) until last month when it was suspended,” a source said, adding that the airline’s Twin Otter operations had been unprofitable and it is highly unlikely that it will be resumed. – November 20, 2023.