KUCHING: Destini Bhd (Destini) expanded into the commercial aviation market through the acquisition of 80 per cent of the shares of SafeAir Technical Sdn Bhd (SafeAir) via the group’s recently incorporated, Destini Aviation Sdn Bhd (DASB).
SafeAir is involved in the provision of aircraft Maintenance, Repair and Overhaul (MRO) services both in Malaysia as well as the South-East Asian region.
The acquisition involved the investment of RM1.4 million in the share capital of SafeAir by DASB which will result in the subscription of 1,400,000 shares.
Speaking on the new acquisition, managing director of Destini, Datuk Rozabil Abdul Rahman said, “By welcoming SafeAir into the Destini family, DASB will be able to effectively increase the service offerings of the company as well as help to expand their customer list by supplementing their technical personnel, tools, and equipment.
“Destini intends to propel SafeAir into becoming one of the leading companies in the region in its specific area of expertise.”
SafeAir was established in 2010 specifically to provide Technical Line Maintenance Services to Airlines operating to Malaysia.
Successfully obtaining Regulatory Approvals from the Civil Aviation Authorities of Malaysia, Singapore, Thailand, and Philippines over the years, SafeAir now operates out of the Kuala Lumpur International Airport, the Penang International Airport, Sultan Azlan Shah Airport as well as the Kota Kinabalu International Airport.
Aside from currently providing services to four airlines from the above-mentioned Airports, SafeAir is also a major service provider to Kuala Lumpur Airport Services Sdn Bhd (KLAS), for Technical Line Maintenance.
SafeAir, currently manages approximately 5,000 turnarounds per annum. Post-acquisition by DASB, the company is in advanced stages of discussions with another four major Airlines for potential contracts, one of which will be a major long term contract.
With all these potential contracts coming in, the company is estimated to reach approximately 60,000 turnarounds per annum, within the next two years, as the growth potential is tremendous for this particular sub-sector of the airline MRO industry.
“Over the next three years, we plan to develop a number of additional service offerings for potential clients, targeted at both narrow and wide-body aircraft,” Rozabil said, adding that by leveraging on the expertise of the group’s fifteen years of experience in the Miliary Component MRO business, Destini’s next foray will be into the Commercial Aviation Component MRO Business which is expected to be commissioned before the end of financial year 2015 (FY15).