Malaysian air cargo carrier to expand operations to ASEAN

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KLASA Malaysia-based air cargo express service has announced plans to beef up its fleet as it sets its sights on the international market, particularly key cities in Asia, including the Association of Southeast Asian Nations (ASEAN).

DRB-Hicom Asia Cargo Express (ACE), a wholly owned unit of KL Airport Services (KLAS) and a member of the DRB-HICOM group, plans to add three cargo aircraft in five years to its present fleet of two to help grow DRB-Hicom’s logistics business.

DRB-Hicom group managing director Syed Faisal Albar said ACE is currently operating two Boeing 737-400F aircraft, each with a cargo capacity of 18.5 tonnes and a flying radius of 4.5 hours, reported Bernama.

At present, ACE offers air cargo services between Peninsular Malaysia, Sabah, and Sarawak.

“We want to add a freighter aircraft by the year-end and two more within five years to extend our air cargo business beyond Malaysian shores,” Syed Faisal told reporters after Transport Minister Liow Tiong Lai launched the company’s new livery and logo for its freight service at the Kuala Lumpur International Airport on March 24.

KLAS group CEO Rani Hisham Samsudin, meanwhile, said ACE plans to expand its freight services to Manila, Hong Kong, Macau, and Vietnamese cities including Ho Chi Minh in the near future.

“For the international route, we will start flying within a month from now. It all depends on the demand. We will fly to any city located within 4.5 hours of flying radius from Malaysia,” he said.

ACE, which was acquired by KLAS in February 2015, is the main service provider for Pos Malaysia, the national postal service.

KLAS said it is moving towards becoming a fully integrated logistics service provider offering end-to-end supply chain management solutions.

On the Malaysian logistics industry, Syed Faisal said he is optimistic it would register double-digit growth this year, noting that the 2016 Agility Emerging Market Logistics Index ranked Malaysia fourth ahead of Saudi Arabia, Brazil, and Indonesia in logistics industry growth.

DRB-Hicom has five logistics services companies under its umbrella: Pos Malaysia, KLAS, Konsortium Logistik, ACE, and DRB-Hicom Auto Solution.

Photo from DRN-Hicom site