SKS Airways clears the air of financial struggle claims, CEO Dzuleira Abu Bakar resigns

On November 20, NST reported that local airline company SKS Airways was “scrambling to secure funding to pay for the delivery of 10 leased Embraer E195-E2 aircraft”, according to an aviation insider who spoke to the publication.

NST has gone on to claim in another article that SKS Airways “travelled all the way to the Middle East to seek funding”.

However, SKS Airways has published a statement today (November 22) claiming that these allegations were “categorically false and reek of mischiefs”.

According to the statement, payments to secure the 10 aircraft have actually been fully paid to its lessor, Azzora Aviation Holdings.

Image Credit: Vulcan Post

“The subsequent payments are due when the aircraft are delivered,” the statement continued.

The local airline further assured that it has been diligent in managing its financial obligations, ensuring that all payments are made on time.

“We do not have any overdue payables, and we have taken great care to ensure that all our employees are fully paid and well taken care of without any exceptions,” it stated.

That said, SKS Airways shared that it is on the lookout for strategic investors, but this is to support them in their second phase, where the plan is to acquire an additional 20 aircraft on top of the current 10 that are already committed.

The company explained that these additional aircraft will play a crucial role in SKS Airways’ aim of continued growth when the government’s Subang Airport Regeneration Plan (SARP) is completed.

Previously, SKS Airways had reported that the Embraer aircraft were slated to be delivered in January 2024. However, in late September this year, the airline’s lessor told them the delivery would be delayed due to supply chain constraints from the aircraft manufacturer’s side.

“This is a global phenomenon that affects everybody,” SKS Airways said. “Nevertheless, the nature of delay is not significant and will not impact SKS Airways’ overall business plan.”

Now in the midst of finetuning the revised aircraft delivery schedule, SKS Airways is targeting the first delivery to be in Q2 2024.

Flight operations to Tioman and Redang halted

In its article, NST also brought to light that SKS Airways had stopped operating its flights to Redang Island and Tioman Island since last month. An insider had told the publication that the suspension of operations is due to Malaysia’s monsoon seasons.

Image Credit: Vulcan Post

However, SKS Airways had operated these flights last year despite the monsoon seasons.

The source also allegedly told NST that the airline’s Twin Otter (the aircraft used for the Redang Island and Tioman Island flights) operations to those islands had been “unprofitable” and thus the source speculated the flights were “highly unlikely to be resumed”.

To this, the airline reported that those flights last year during the monsoon seasons had experienced a low take-up rate, so this year, as climate change has caused unpredictable weather conditions, the team decided to cancel all flights during the monsoon season for safety and commercial reasons.

SKS Airways also stated, “Moreover, most of the resorts on these islands are closed during this period. The recent news articles suggesting that the flight cancellation was due to funding issues are categorically false and reek of mischiefs.”

The CEO resigns

This news comes in conjunction with the confirmation of Dzuleira Abu Akbar’s departure from the company as its CEO.

Image Credit: Dzuleira Abu Bakar

Dzuleira was previously CEO of MRANTI but had left her post and joined SKS Airways, effective September 15, 2023. She had taken over from the Acting CEO and Executive Director at the time, Dato’ Rohman Ahmad.

According to the press release, Dzuleira resigned from her position effective November 10, 2023. In another release, SKS Airways elaborated that the company has accepted her decision and extended its deepest gratitude for “Dzuleira’s invaluable contributions during her tenure”.

Moving forward, the leadership of SKS Airways will be entrusted back to Dato’ Rohman Ahmad, the aforementioned Executive Director and now also Accountable Manager.

“Dzuleira’s leadership, despite its brevity, has left a significant impact on our organisation,” he shared. “We would like to take this opportunity to express our heartfelt thanks for her contributions to SKS Airways which will always be appreciated.”

Learn more about SKS Airways here.
Read other articles we’ve written about Malaysian startups here.

Featured Image Credit: Dzuleira Abu Bakar