One of the most recent customers of Embraer’s E2 jet family would be facing a serious financial crisis, SKS Airways, from Malaysia.
According to the Business Times, the small regional airline has suspended its flights with DHC-6 Twin Otter turboprops and its website has stopped accepting reservations.
Other reports indicate that SKS executives traveled to the Middle East in search of investors in the United Arab Emirates and Saudi Arabia, but without success.
The plan was to obtain resources to finance the lease of the 10 E195-E2s contracted with the lessor Azorra in May. Also according to the outlets, SKS would have spoken to Malaysia Aviation Group (MAG), controller of the country’s largest airline.
The company, however, guarantees that its financial situation is healthy and that it has been the victim of a defamation campaign. “We have reason to believe that there are individuals who are providing incorrect information to the
media with the intent to discredit our company and business”, said SKS in a statement.
SKS Airways intends to establish a hub at Subang Airport, in the central area of the Malaysian capital, Kuala Kumpur, taking advantage of the good passenger capacity and range of the E195-E2.
However, the local currency, the ringgit, has depreciated sharply against the dollar, which is used to pay for leasing.
Embraer is counting on SKS and Scoot, a subsidiary of Singapore Airlines, to establish its new E2 jets in Southeast Asia and become a showcase for other potential interested parties.
Scoot should receive the first E190-E2, also leased from Azorra, at the beginning of 2024, a similar deadline to that of SKS.
Note from editor: article has been updated to include response from SKS Airways.