KUALA LUMPUR: Brazilian aircraft manufacturer Embraer S.A. has said the delivery of SKS Airways Sdn Bhd's E195-E2 aircraft will be made in due time.
"Embraer had announced at Lima 2023 that the delivery of the E195-E2 aircraft to SKS Airways would be in 2024. The exact timing in 2024 will be defined in due course," a spokesperson said in a response to Business Times' query.
SKS Airways was slated to be Embraer's first launch customer in Malaysia after announcing a RM3.9 billion deal in May 2023 to lease 10 E195-E2 aircraft from US aircraft lessor Azorra Aviation Holdings.
The airline is expected to commence operations starting March 2024 to neighbouring countries out of the Subang Airport although it had planned to receive its first regional jet in January of the same year.
An aviation insider said usually aircraft manufacturers and lessors would do a thorough due diligence on an airline before signing any deals, especially a new airline.
"No manufacturer or leasing company want to take a risk with an airline that has no money. Did Azorra and Embraer do a proper due diligence on SKS? For sure they did, right?" the source asked.
The source also noted that Malaysia has long been a market that Embraer had wanted to penetrate for a long time.
On July 26, the E190-E2 and E195-E2 had received type certification from the Civil Aviation Authority of Malaysia.
On Nov 20, Business Times reported that SKS Airways had hit a snag in funding and was searching for new investors to fund the delivery of its E195-E2.
The carrier is believed to have flown all the way to the Middle East in search of an interested party to buy a stake in the company.
"They should have some buffer in their cash flow for at least 18 months. As said many times, airline business is tough especially when you're a new airline," an insider said.
Business Times also reported the departure of SKS Airways' chief executive officer (CEO) Dzuleira Abu Bakar believed to be last week.
The source said it was sad for the industry to see what was happening a month after the MYAirline Sdn Bhd fiasco.
MYAirline had faced similar financial issues and seen two of its CEOs Rayner Teo and Stuart Cross departed from the company. It suspended its flight operations indefinitely since Oct 12.
"You need a CEO to helm a company. In this case (SKS Airways), it's not just about running an airline but it's also to turn it around," the source said.