Malaysian carrier SKS Airways (KI, Johor Bahru) has suspended its scheduled flight operations amid reports it is facing a shortage of funds, and its order for ten E195-E2s is under threat. If the order holds, the carrier is in line to become Malaysia's first Embraer operator.

The New Strait Times reported on November 20 that the DHC-6-300 operator - it has a fleet of two of the Twin Otters - had halted scheduled services on the Kuala Lumpur Subang-Tioman and Kuala Lumpur Subang-Pulau Redang sectors. The SKS Airways booking portal has no flights for sale for the remainder of the year.

SKS Airways commenced operations in 2022, focusing on domestic, short-range, leisure, and commuter flights to unserved and underserved destinations. It is the second Malaysian carrier to suspend flights in as many months, with MYAirline pausing services in October owing to financial issues. SKS Group owns SKS Airways, the parent being a Malaysian entity with interests in property development, investment holdings, hospitality, and credit finance.

The English-language Malaysian newspaper reported that SKS's Twin Otter operations had been consistently unprofitable and were unlikely to restart. In May, the carrier signed an agreement with Azorra to lease the ten Embraer regional jets for 12 years, with deliveries to start in early 2024. However, the carrier is reportedly experiencing difficulties finding the money to pay for the aircraft. Pending further developments, SKS Airways is believed to have pushed back the first E2 deliveries to the second quarter of 2024.

The Edge financial news outlet reported that SKS had been in funding discussions with potential investors, including Malaysia Aviation Group, owner of Malaysia Airlines, which declined to provide any capital as it is prioritising its own in-house fleet renewal. "We do not have any preset formula for equity participation," an SKS spokesperson told the newspaper. "When considering such interest, we will lean heavily towards parties with strategic contributions to the airline."

In response to enquiries from ch-aviation, a SKS spokesperson said inaccuracies were circulating about the airline but declined to provide further details. "We'll be issuing a statement soon to provide clarity and accurate information," the representative said.

Separately, there are reports that SKS CEO Dzuleira Abu Bakar tendered her resignation last week. Abu Bakar only took up the role in June.