MMAG Aviation Consortium (MAC) will establish an air cargo feeder network to support SriLankan Airlines’ cargo operations if an investment bid by Supreme Global Holdings and a partner is successful.
A partnership led by Sri Lankan conglomerate Supreme Global last week emerged as a potential buyer of an interest in the government-owned airline.
In line with the bid, Supreme Global has signed a partnership with supply chain services company MMAG Holdings that will see subsidiary MMAG Aviation Consortium (MAC) provide freighter aircraft and operational support to establish a cargo feeder network for SriLankan Airlines if the investment proves succesful.
In a filing with stock exchange Bursa Malaysia MMAG said: “Pursuant to the Agreement, MAC agrees to support the said acquisition by providing the requisite guidance, specialised services, specifically focusing on establishing and managing a regional cargo feeder network, subject to the terms and conditions of the agreement.”
Services provided by MAC will include planning, staffing, managing and maintaining the cargo network.
Additionally, MAC will support Supreme Global and its partner in restructuring efforts post-acquisition and assist in launching a cargo network leveraging the geographic position of Sri Lanka to enhance its capacity as a strategic hub.
“MAC has been identified by Supreme Global to be the best candidate in this field given its ability, expertise, knowledge and spectrum of capabilities and coverage to partner and guide, following
the Group’s recent contracts secured from major carriers like MasKargo and Teleport by AirAsia, establishing the Group as a key feeder and cargo handling operator in the aviation industry,” added the filing.
Headquartered at Kuala Lumpur International Airport (KLIA), MAC delivers integrated cargo airline solutions, encompassing commercial cargo operations, ground handling, an oceanic transhipment hub and on-demand cargo depot services.
MMAG, meanwhile, is active in the air cargo industry through its subsidiary M Jets International, which in turn owns Boeing 737 freighter operator Kargo Xpress. The supply chain service provider offers services covering first, mid, and last-mile delivery solutions.
Supreme Global is a prominent Sri Lankan conglomerate with diversified interests spanning finance, infrastructure, logistics and aviation.
The Sri Lankan government is looking for an investor to attract funding for the airline, which is in recovery mode following a difficult few years.
Last year, SriLankan Airlines told Air Cargo News it planned to focus on e-commerce flights to China, interline partnerships and digitalisation to tackle the tough operating conditions the air cargo market was facing.
SriLankan Cargo recently placed its capacity on CargoAi’s CargoMART online booking portal.
SriLankan adds its capacity to CargoAi booking platform
SriLankan Airlines looks to partnerships, digital and e-commerce in tough cargo conditions
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