MMAG Unit To Dispose Of Boeing B737-400SF Aircraft For US$2.8 Mln
KUALA LUMPUR, Oct 19 (Bernama) -- MMAG Holdings Bhd’s (MMAG) indirect subsidiary, MJets Air Sdn Bhd, is disposing of a Boeing B737-400SF aircraft to Mont Gabanon Airlines (MGA) for US$2.8 million in cash.
MGA is the aviation division of Mont Gabaon SARLU, a private limited liability company incorporated in the Democratic Republic of Congo.
In a filing with Bursa Malaysia, MMAG said proceeds from the proposed disposal would be used mainly to meet MJets Air’s working capital requirements.
These include the payment of trade and other payables, operating expenses, lease rentals and other day-to-day business expenditures.
The integrated supply chain management and logistics provider said the proposed disposal forms part of the group’s ongoing review of its aviation assets and operations.
“The current ongoing geopolitical tensions and global uncertainty, with sharp escalation in fuel prices, have not only materially increased operating costs, but reduced charter demand, particularly for this model of aircraft which continues to struggle to generate sufficient revenue to cover the operating costs,” it added.
-- BERNAMA