KUALA LUMPUR, Nov 19 — Air cargo operator Transmile Group said today it would not sell its aircraft maintenance unit to national carrier Malaysian Airline as the letter of intent had expired.
“However, both parties will continue to be in dialogue in the event that opportunity arises for the parties to pursue the proposed transaction in future,” Transmile said in a filing with the stock exchange.
No timeframe was given.
Malaysian Aerospace Engineering Sdn Bhd (MAE), a unit of Malaysia Airline, was supposed to buy Transmile’s base maintenance and engineering capabilities including 2 hangars, equipment, and employment of its skilled manpower.
Financial details of the transaction were never revealed.
MAE was also supposed to provide heavy maintenance services to Transmile’s fleet of 16 freighter aircraft.
MAE services 80 customer airlines including Lufthansa, Saudi Arabian Airlines, Jet Airways and Delta Air Lines Inc.
Shares of Malaysian Airline edged 0.3 per cent higher at RM3.12 and Transmile ended down 1.9 per cent at RM1.02. — Reuters
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