Berjaya Group (BGroup), a property and gaming outfit, may exit the aviation business as it is in talks with investors to dispose of Berjaya Air..
Industry sources said BGroup's controlling stakeholder Tan Sri Vincent Tan is talking to a few local and foreign parties including one from Indonesia.
Berjaya Air general manager Tan Bee Hock told Business Times that he is not aware of any plans by (Vincent) Tan to sell the aviation business
The sources, however, claimed an Indonesian tycoon, who runs several businesses in Malaysia, has expressed an interest to buy the airline.
"Berjaya Air, although it complements Berjaya Group's hotels and resorts, is not making as much money. Tan is considering selling the business if there is a good offer," the source said.
It is understood that Tan is looking at offers above RM150 million.
Tan declined to respond to Business Times queries.
Berjaya Air began operations in 1989. It is owned by the BGroup via Berjaya Land Bhd, and was formerly known as Pacific Air Charter.
The airline is not earning enough although it flies to a few destinations like Pangkor, Tioman and Redang island, and Koh Samui in Thailand, from the Sultan Abdul Aziz Shah Airport in Subang, Selangor.
It also flies to Seletar airport in Singapore from Tioman and Redang.
On May 3, all flights to Pangkor were ceased after a decade of air services to the island as the route was not profitable, BGroup had said in a statement.
BGroup also is worried that aircraft maintenance for its 48-seater Dash 7s will get more difficult as Bombardier is no longer producing the spare parts.
Currently, only the Dash 7s can service most of the routes that Berjaya Air flies to because of the runway length.
Berjaya Air currently operates two ATR 72-500 and three Dash 7s. One Dash 7 is under scheduled maintenance.
The ATRs are part of the four turboprop planes which Berjaya Air had ordered in 2007 for RM255 million, from southern France-based regional aircraft maker, Avions De Transport Regional. The other two ATRs have not taken delivery.
Berjaya Air's Tan Bee Hock said the company has yet to decide if it wants to exercise the option to buy the two remaining ATRs.
Berjaya Air general manager Tan Bee Hock told Business Times that he is not aware of any plans by (Vincent) Tan to sell the aviation business
The sources, however, claimed an Indonesian tycoon, who runs several businesses in Malaysia, has expressed an interest to buy the airline.
"Berjaya Air, although it complements Berjaya Group's hotels and resorts, is not making as much money. Tan is considering selling the business if there is a good offer," the source said.
Tan declined to respond to Business Times queries.
Berjaya Air began operations in 1989. It is owned by the BGroup via Berjaya Land Bhd, and was formerly known as Pacific Air Charter.
The airline is not earning enough although it flies to a few destinations like Pangkor, Tioman and Redang island, and Koh Samui in Thailand, from the Sultan Abdul Aziz Shah Airport in Subang, Selangor.
It also flies to Seletar airport in Singapore from Tioman and Redang.
On May 3, all flights to Pangkor were ceased after a decade of air services to the island as the route was not profitable, BGroup had said in a statement.
BGroup also is worried that aircraft maintenance for its 48-seater Dash 7s will get more difficult as Bombardier is no longer producing the spare parts.
Currently, only the Dash 7s can service most of the routes that Berjaya Air flies to because of the runway length.
Berjaya Air currently operates two ATR 72-500 and three Dash 7s. One Dash 7 is under scheduled maintenance.
The ATRs are part of the four turboprop planes which Berjaya Air had ordered in 2007 for RM255 million, from southern France-based regional aircraft maker, Avions De Transport Regional. The other two ATRs have not taken delivery.
Berjaya Air's Tan Bee Hock said the company has yet to decide if it wants to exercise the option to buy the two remaining ATRs.
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