According to a source, Johor Bahru-based SKS Airways Sdn Bhd, which ceased its cargo and passenger services last November, had its permit suspended on Oct 23.

Kuala Lumpur-based Myballoon Adventure Sdn Bhd, the first firm to obtain an AOC for commercial hot air balloon rides, saw its permit suspended in August.

Myballoon was started by four hot air balloon enthusiasts who wanted to make Malaysia the next ballooning destination in Southeast Asia.

A CAAM spokesman confirmed both suspensions but did not disclose the reasons.

SKS Airways, with the call sign Southern Tiger, had obtained its AOC in 2021 for a fleet consisting of two DHC 6-300 Twin Otter planes.

The company operated flights from the Sultan Abdul Aziz Shah Airport n Subang to the islands of Tioman, Pahang; Redang, Terengganu; and Pangkor, Perak.

Flights to Pangkor were scrapped in June 2022 due to low demand, while flights to Tioman and Redang were reportedly halted in November last year reportedly due to issues affecting the funding of new aircraft.

During the Langkawi International Maritime and Aerospace exhibition in May last year, the airline was reported to have signed an agreement with Azorra Aviation to lease 10 Embraer E1952-E2 planes.

SKS also entered into a long-term services agreement with Embraer for spare parts, parts repair, maintenance and fleet monitoring. These planes were intended to support the airline’s regional expansion from its base at Subang.

However, SKS cancelled the leases in July this year after apparently failing to secure enough slots at Subang to support the expanded operations.