SMTrack to venture into low-cost airline industry
Published on: Monday, April 15, 2019
KUALA LUMPUR: SMTrack Bhd, which provides radio frequency identification (RFID) solutions, is looking to venture into the low-cost airline business.
On Saturday, it signed a memorandum of understanding with Dexma Express Sdn Bhd, the official general sales agent of Garuda Indonesia’s subsidiary Citilink, for potential investment in the upcoming Citilink Malaysia operation.
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SMTrack is proposing to acquire a 60 per cent stake in the operation for RM3.5 million. Dexma would change its name to Citilink Aviation Malaysia Sdn Bhd and obtain air operator certificate and other licences or permits required, a representative from SMTrack, Jay Hoo Ying Wah, told reporters after the signing ceremony.
The share sales agreement, meanwhile, is expected to be concluded within three months from the date of the MoU signing.
Citilink Aviation was expected to start operation in the second quarter of 2019, providing low-cost flights especially to customers flying within the Asean region, Hoo said.
“Our first route will be from Kuala Lumpur to Phnom Penh, Cambodia. Outside the Asean countries, we will soon target China,” he said.
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Meanwhile, Dexma Director, Alvin Heng Jee Zhi, said passengers flying with the airline would enjoy free 10 kg baggage allowance and meals.
“We are not only competing in providing affordable flight tickets but also better service. We are going to be a new player in Malaysia but we are experienced in the Indonesian market,” he said.
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Jakarta-based Citilink was established in 2001 as a low-cost brand of Garuda Indonesia, set up to operate shuttle services between Indonesian cities. But since July 30, 2012, it has officially operated as a separate subsidiary of the Indonesian national carrier.
Citilink’s fleet size currently stands at just over 50 aircraft.
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