Raya Airways takes flight from former Transmile
With a massively trimmed route network and a realistic growth plan, Malaysia’s newest cargo carrier, Raya Airways - the rebranded Transmile Air Services now under new ownership and management - looks set for a much brighter and smoother flight path than its former incarnation. Donald Urquhart reports.
November 10, 2014
With nearly a two decade history, the former Transmile was ultimately brought down by over-ambitiousness, inconsistent management, and a RM530 million (US$159 million) accounting fraud among other issues, that ultimately led to bankruptcy administration, group restructuring and the selling off of its various units.
Amongst the various assets of the Transmile Group Bhd. that were hived off were its 45 per cent equity interest in Th ailand-based K-Mile Air Co. Ltd to Farnair Switzerland AG in March 2014 and the July 2014 sale of Transmile Air Services to Amrul Nizar Anuar Resources Sdn Bhd for RM40 million to become Raya Airways.
But all the turmoil of the Transmile days, as they say, is history. A key thing that Raya retained is the brand equity that Transmile managed to maintain in the market, despite the internal trumoil it went through. Part of that can be seen in its retention of valuable client DHL Express.
“We have taken on the core business that Transmile Air Services had retained during their administration period. Mainly that involved some domestic Malaysia services and also a significant contract DHL fly between Hong Kong and Kuala Lumpur,” says Raya Airways commercial advisor Mike Duggan. Th at contract was maintained over the administration period and was renewed by DHL this past September.