KUALA LUMPUR (Jan 30): MMAG Holdings Bhd has appointed one of its former directors Woo Kam Weng as the chairman of the group's newly formed aviation arm MMAG Aviation Consortium Sdn Bhd (MAC), as it looks to enhance its aviation capabilities and broaden its extensive range of aviation-centric services as part of a strategic expansion.
Woo said MMAG is currently in the process of streamlining its business units and laying the groundwork for necessary corporate restructuring initiatives.
"Our unwavering commitment is to provide comprehensive end-to-end integrated aviation services that cater to the diverse needs of our valued clients and partners," he said in a press release on Tuesday.
One of the four subsidiaries under MAC is the group's 95%-owned flagship entity MJets International Sdn Bhd (MJets Air) which has undergone a rebranding from its former Kargo Xpress brand. MMAG said it is looking to increase MJets Air's fleet size to seven aircraft by the end-2024.
"Operating a growing fleet of four aircraft, MJets Air is committed to meeting the evolving demands of international commerce by providing full charter, minimum blocked space charter, and open sales booking services," it said.
Meanwhile, its unit XCT Aviation Sdn Bhd is involved in ground handling and cargo terminal operations. Operating the Xpress Cargo Terminal, XCT has a capacity of 302,400 sq ft of space.
Meanwhile, Oceanic Transshipment Sdn Bhd, another subsidiary under MAC, is principally involved in the logistics sector of live seafood and ornamental fish.
SkyVault Cargo Sdn Bhd, formerly known as MMantap Sdn Bhd, on the other hand, is aimed at transforming the storage and warehousing industry with its on-demand services. SkyVault Cargo is set to accommodate the diverse needs of businesses, specifically on warehousing.
"As we move forward, we envision a seamless synergy within our aviation capabilities which will enable us to offer a comprehensive solution encompassing everything from air freight and cargo handling to efficient transshipment and warehousing services. We are committed to becoming a powerhouse in the aviation industry, delivering exceptional value and service quality," Woo added.
It is worth noting that MMAG had previously in April 2023 sued former MJets directors Gunasekar Mariappan and Philip Phang Kin Ming for alleged breach of fiduciary duties. The group is seeking special damages of RM23.17 million, judgement interest at 5% per annum from the date of judgement until full settlement, and any other relief the court deems fit.
Prior to that, MMAG announced on Feb 21 that the duo had been suspended following a raid at MJets' office on Feb 13, based on a report the MACC had received. MJet's bank accounts had also been frozen.
Then on March 6, MMAG said MJets had been slapped with a lawsuit over the alleged non-payment of monthly repayment installments. The suit was filed by Comone International Logistics Co Ltd, which claimed that MJets did not pay the installments for the cancellation of a proposed joint venture agreed to by MJet's previous management, before it became a subsidiary of MMAG.
In response, the former directors later initiated a RM49.85 million counter-suit against MMAG and its directors for allegedly conspiring to injure the duo's investments in MJets.
In the duo's counter-suit, Gunasekar and Phang named eight others besides MMAG as defendants, namely: businessman Victor Chin Boon Leong; two of MMAG's directors Kenny Khow Chuan Wah and Chong Koon Meng; MJets; and JT Aerotech Solutions Sdn Bhd (JTAS) and three of its shareholders — R Shanmugananthan, Anton Alex Schubert and M Saysu — who collectively hold a 30% stake in JTAS. The remaining 70% stake in JTAS is held by Gunasekar and Phang.
Gunasekar and Phang argued that the complaint by MMAG against them was baseless, unsubstantiated and a ploy to oust them from MJets.
MMAG bought the stake in MJets for RM21.36 million from JTAS in November 2020 to have its own air cargo arm, to complete its supply chain of first-, middle- and last-mile delivery. At that time, MJets was a provider of airline charter flights.
Shares in MMAG closed unchanged at 9.5 sen, giving the company a market capitalisation of RM153.03 million.