Sunday, August 10, 2014

Destini - service provider for Airasia

It plans to become a maintenance, repair and overhaul service provider for Airasia Bhd. The group is at base negotiations with the Airasia Bhd and may be able to secure the MRO contract in 2015.

The group has also been eyeing MRO jobs from other aviation companies. Destini plans could only be realized after the EASA certification which is in the process of being finalized.

It is worth nothing that Datuk Kamarudin Meranum, Airasia’s non independent non executive director is listed among Destini’s top 30 shareholders. He held a 1.94% stake as at May 6 2014.

Kamarudin used to hold about 5% stake in Destini but his shareholding has been diluted since the acquisition of Samudra Oil Services Sdn Bhd.

Destini acquired Samudra Oil from Kejuruterran Samudra Timur earlier 2014 for rm80 million via the issuance of 228.6 million new shares at rm0.35 each.

Destini’s new focus for its aviation MRO division is to get more contracts from the private sector to diversify its revenue base.

Destimi specializes in the MRO of safety and survival products for the aviation, marine and oil and gas industries.

Its revenue has been driven by government contracts, especially for its aviation division which made up more than half of the group’s revenue of rm56.83 million.

Destini via its subsidiaries provides products and services, including the distribution and supply of defense, commercial aviation and marine equipment and accessories, the maintenance and repair safety and survival equipment, and the maintenance and repair of aviation electronics.

The group intends the aviation division to contribute 25% of revenue. The remainder will come from its marine division (25%) and oil and gas (50%).

Currently (Aug 2014), most of Destini’s aviation division’s contracts are from the government, while its marine division has gone totally commercial.

In April 2014, it secured a LOA from the Mindef for appointment to the panel to supply spare parts for non proprietary aircraft for the RMAF worth rm99 million.

In Dec 2013, the group was awarded a LOA by Mindef to supply defence equipment to the RMAF for rm46.31 million.

In Nov 2013, it secured an rm95 million contract from Mindef to provide first line and above maintenance services for safety and survival equipment for three years.

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