M Jets International Sdn Bhd. secured its Air Operator's Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM) on June 9, 2021, and plans to begin charter cargo operations by the end of the month under the Kargo Xpress (Kuala Lumpur International) brand name.
MMAG Holdings Berhad, an ICT company, entered into an agreement to buy an 80% stake in M Jets International in November 2020 from former owner, JT Aerotech Solutions (JTAS), for a total consideration of MYR21.4 million ringgits (USD5.2 million). JTAS continues to own the remaining 20% stake. The completion of the acquisition was conditional on M Jets International reactivating its AOC.
Although Malaysian Aviation Commission (MAVCOM) records show M Jets International currently holds no traffic rights at present, a company sales brochure shows it is looking to connect Malaysia with points across Indonesia, the Philippines, Thailand, Laos, Sri Lanka, India, Bangladesh, Myanmar, Taiwan, Viet Nam, and Thailand.
Earlier this year, Cargo Facts said M Jets would relaunch using B737-400(F) 9M-XKA (msn 26605), a 25.8-year-old jet owned by Vallair but which has remained in storage at Kuala Lumpur Subang airport since February 27, 2021, Flightradar24 ADS-B data shows. During the acquisition of M Jets, MMAG indicated that it would add two B737-400(F)s for the carrier.
Prior to its recertification, M Jets International was a charter broker and aviation services provider. It held a valid AOC which expired at the end of 2020. In 2019, the last full year for which results are available, the company had a MYR21.2 million (USD5.1 million) net loss. The carrier tried to launch B737-800 passenger charters under the Love2Fly brand in 2019, but dropped those plans last year after never operating a single commercial flight.
For the financial year ended March 31, 2021, MMAG Holdings itself lost MYR23.0 million (USD5.6 million) on revenue of MYR222.8 million (USD54.1 million).
