KUALA LUMPUR: Hubline Bhd, a Bursa Malaysia-listed company primarily involved in the shipping industry, has branched out into the aviation industry with the completion of the acquisition of a 51 per cent stake in Layang Layang Aerospace Sdn Bhd.
In a filing with Bursa Malaysia, the company said it had bought a controlling stake in Layang Layang Aerospace for RM14.2 million.
Layang Layang Aerospace will generate a net profit of not less than RM10.5 million in total with a minimum of RM3.0 million net profit for any one year, for the financial years ending December 31 2019, 2020 and 2021, or equivalent to 36 months.
This was after taking into account the intended change of financial year end to 30 September to be co-terminus with the financial year of Hubline, it said.
Layang Layang Aerospace started its operations in 1994 in Miri, Sarawak, by aircraft engineer turned entrepreneur Johan Poong Abudllah.
Layang Layang Aerospace recently celebrated its silver jubilee, when it was initially focused in providing that very important air link to connect the rural areas of Sarawak and Sabah.
Hubline chief executive officer and managing director Dennis Ling Li Kuang said the new business would help broaden its revenue base into air logistics and other areas of aviation.
He said Layang Layang Aerospace was a registered service provider for Petronas and was entering the oil and gas air transportation services, with new bases in Miri and Kota Kinabalu as one of its major upcoming projects.
“The oil and gas transportation sector is picking up again and Layang Layang Aerospace with its safety record for the last 25 years and backing from Hubline, is in good position to expand into the sector,” he added.
He said that Layang Layang Aerospace will procure two additional fixed wing aircraft and six helicopters (two twin and four single engines) to support the growing demand of general aviation services in the region.
With this addition, Layang Layang Aerospace fleet will comprise 28 aircrafts including a mixture of helicopters and fixed wing aircrafts, making them the largest general aviation operator in the country.