Sin-Kung Logistics Bhd group managing director Alan Ong Lay Wooi
PETALING JAYA: Sin-Kung Logistics Bhd plans to lease two aircraft to get its air freight cargo business off the ground by the second or third quarter of 2025.
The group recently inked a deal to acquire Prima Air Sdn Bhd for RM20.7mil to position itself in the air cargo segment.
Sin-Kung specialises in airport-to-airport road feeder services, including trucking and container haulage services across Malaysia, Singapore and Thailand.
Group managing director Alan Ong Lay Wooi told StarBiz that the recently acquired airline was engaged in three segments – private jet service, air cargo as well as the maintenance, repair and operations (MROs) of aircraft.
“It wasn’t a spur of the moment decision to acquire Prima Air, we started thinking about it a number of years ago.
“In fact, the business has plenty to do with the current airport road feeder services we provide – this too, is part of the ground service in the aviation industry,” he said.
According to Ong, the next phase of growth for the company will be the air freight cargo services, which will start in Peninsular Malaysia before gradually including overseas destinations.
“I’d like to think that this will be a sunrise business, there’s always new opportunities within it to discover,” he said.
Ong added that this segment is set to become the largest contributor to the group in the next couple of years.
He said the projection for each aircraft will be RM5.21mil each month.
“We will lease the first two aircraft, but our third will be bought.
“We want to have those assets in the long run, but if I want the business to start next year, the only option we have is to lease the aircraft as a start,” he explained.
Similar to the trucking business, the air freight cargo segment will cater to different industries including aerospace, pharmaceutical products, semiconductor, oil and gas as well as perishables, according to Ong.
In the meantime, he said the private jet would be available for charter for its commercial business.
“There are people who hire private jets because they do not want to be stuck in long queues at the airports.
“The jet can fit up to six people, so it is quite convenient. This part of the business is good to start immediately,” he noted.
Ong added that the MRO segment is an ongoing business as it is licensed and has existing engineers from Prima Air.
“As part of the deal, we didn’t terminate any employees of Prima Air, but kept all of them as part of the group.
“And once we start the air freight cargo business, we will be hiring more people to handle that segment,” he pointed out.
The group’s road feeder segment will also expand into other regions within Malaysia next year as it works concurrently with the air freight cargo business.
Ong said Sin-Kung Logistics will serve the routes using its trucks where possible as it is all interconnected.
It would also continue its warehouse and distribution services.
Meanwhile, Ong said one of the factors that he is learning about the aviation industry is the need to maintain aircraft on a regular basis.
“Maintenance is very important, it is the only asset that will make profit for an airline.
“We are glad to have the MRO side of the business because once we own the aircraft, we will be able to handle looking after it,” he added.
