New flymojo to fly out of Senai airport

18 Mar 2015 / 05:36 H.

    PETALING JAYA: Flymojo, a new privately Malaysian airline to fly out of Senai Airport in Johor Baru, has signed a deal with Canada's Bombardier Commercial Aircraft to buy 20 CS100 aircraft for US$1.47 billion (RM5.42 billion).
    Both parties signed a letter of intent for the sale and purchase of 20 CS100 aircraft with options for an additional 20 CS100 aircraft, in Langkawi yesterday. An exercise of all the options will bring up the price tag to US$2.94 billion.
    Managing director, Datuk Janardhanan Gopala Krishnan, told SunBiz that the company, which is backed by private equity funds, will look into sale and leaseback of aircraft of its fleet in a bid to keep the company asset light. Janardhanan was previously COO of Subang Skypark Sdn Bhd.
    The airline which plans to start operating out of its primary hub in Johor Baru in the third quarter of this year, is currently in talks with Bombardier to secure aircraft in the interim before the CS100 comes on board in December. It will start flights out of its secondary hub Kota Kinabalu, shortly after Johor Baru.
    A quick search on Companies Commission of Malaysia (SSM) showed that Fly Mojo Sdn Bhd, the holding company of Flymojo airline, registered a net loss of RM8,433 with current assets totalling RM2.97 million in the financial year ended June 30, 2013.
    The company was registered on April 4, 2011 with an authorised and issued share capital of RM5 million and RM3 million respectively, divided into equal shares of RM1 each.
    It has three direct shareholders, namely Azharuddin Satyapal Das Abdullah, Bulan Terang Sdn Bhd and Ismail Hue Kor, who holds 2.43 million shares, 300,000 shares and 270,000 shares, respectively.
    The company has three directors, namely Janardhanan, Ismail Hue Kor Ming and Rada Palanisamy. All three are also directors in Bulan Terang, while Janardhanan and Ismail Hue Kor Ming are its shareholders.
    Upon execution of a firm purchase agreement, flymojo, which will make Johor Baru its primary hub and Kota Kinabalu its secondary hub.
    At the signing ceremony, flymojo was represented by Janardhanan and Bombardier Commercial by Regional vice-president, Sales, Asia-Pacific, Frank Baistrocchi.
    Also present were Prime Minister Datuk Seri Najib Abdul Razak, Transport Minister Datuk Seri Liow Tiong Lai, Deputy Transport Minister Datuk Aziz Kaprawi, Canada's High Commissioner to Malaysia Judith St George, flymojo chairman Datuk Seri Alies Anor Abdul and vice-president sales China and Asia-Pacific Bombardier Commercial Aircraft Andy Solem.
    Aziz said the entry of flymojo will play a key role in improving connectivity between Peninsular Malaysia, Sabah and Sarawak and other parts of the region.
    "In addition, as the only airline using the Southern Corridor as its headquarters, flymojo will transform Senai into a key regional aviation and logistics hub and augment the government's initiatives in developing Iskandar Malaysia and the Southern Corridor.
    "Further strengthening Kota Kinabalu's standing as a gateway into Malaysia, flymojo will also boost tourism into Sabah and Sarawak," he added.

    thesundaily_my Sentifi Top 10 talked about stocks