This article first appeared in The Edge Financial Daily on April 24, 2019

KUALA LUMPUR: Destini Avia Technique Sdn Bhd (DAT), a 50:50 joint venture between Destini Bhd and UK-based Avia Technique Ltd, will undertake repair and overhaul activities on aircraft safety equipment for Malindo Airways Sdn Bhd and Thai Lion Mentari Co Ltd.

DAT is currently servicing the aircraft safety equipment for Malaysia Airlines Bhd, AirAsia Group Bhd and AirAsia X Bhd.

In a statement yesterday, Destini said DAT yesterday entered into an aircraft safety equipment maintenance support agreement with the two airlines. Under the agreement, DAT will supply, test, repair and/or overhaul both airlines’ escape slides, oxygen cylinders, crew oxygen bottles and fire extinguishers, emergency locator transmitters, oxygen masks and life preservers. The agreement’s tenure is three years, with an option to extend for another two years.

“Destini’s management sees this agreement will positively impact the group’s earnings and overall commercial aviation operations as it expands its customer base,” it said. Malindo and Thai Lion Air, part of Indonesia’s Lion Air Group,  serve over 90 destinations with a fleet of over 80 aircraft operating from Malaysia and Thailand.

DAT said it will be able to leverage on both airlines’ growing fleet as they have cited fleet expansion plans for the near term, in tandem with passenger traffic growth in the region. “DAT is currently looking to expand its capabilities to offer additional value-added services to customers,” it added.

“DAT is also actively seeking to expand its customer base via establishing new bases within the region. To achieve this, DAT intends to secure more certifications from aviation regulators.”