PETALING JAYA: Abu Dhabi-based RoyalJet LLC has signed a conditional heads of agreement (HOA) with Sapura Resources Bhd (SRB) for the potential acquisition of SRB’s aviation business at Subang Airport.
The agreement was signed between SRB and the premium private aviation firm on June 23, according to a statement released today.
The deal enables RoyalJet to establish a presence in the Southeast Asian private aviation market by designating Subang Airport as its regional hub for private charters and its maintenance, repair and overhaul (MRO) business.
“With the support of the excellent bilateral relations of the two countries, we look forward to the discussions with RoyalJet,” said SRB managing director Shahriman Shamsuddin.
RoyalJet CEO Husain Ahmed expressed confidence in the group’s growth prospects and sees ongoing discussions with SRB as a solid foundation for building a stronger presence in the region.
“We are keen to expand our business in Asia. The ongoing discussion with SRB’s aviation business offers promising opportunities,” he said.
Malaysia Airports Holdings Bhd managing director Iskandar Mahmood said this potential deal complements efforts to rejuvenate Subang Airport, also called the Sultan Abdul Aziz Shah Airport.
“Our focus is to position Subang Airport as a premium city and regional airport, as well as further develop the general and business aviation sectors in Malaysia.
“The presence of RoyalJet in Subang Airport will create momentum in attracting more international aviation players into the ecosystem,” said Iskandar.
Meanwhile, Malaysia External Trade Development Corporation (Matrade) deputy CEO Sharimahton Mat Saleh said that Subang Airport’s mature ecosystem is already recognised as a regional MRO hub for general aviation.
“International players stand to gain many advantages from the cooperation with Malaysian MRO companies, which will boost the exports of this high-value service in the region,” she added.
In February, transport minister Loke Siew Fook announced plans to turn the airport into a premium city airport and aviation hub as part of the new Subang Airport Rejuvenation Plan.
Loke said the plan would focus on business aviation, regional commercial flight operations, and other commercial flights.
RoyalJet, an airline based in Abu Dhabi, UAE, is a charter operator aimed at the luxury market between the UAE and Europe.
It offers services such as aircraft management, aircraft charter, aircraft leasing, aircraft maintenance and repair, aircraft acquisition and disposal and VIP aviation consulting, among others.
SRB is an investment holding with business involvements in property investment, aviation and MRO.
It posted a net profit of RM72.77 million for the financial year ended Jan 31, 2023 (FY2023) compared to a net loss of RM263.5 million in FY2022.