MMAG plans freighter sale with expected RM12.69 million loss
The US$2.8 million disposal is due to be completed in the fourth quarter of 2026, with proceeds mainly earmarked for MJets Air’s working capital.
MMAG Holdings Bhd expects a loss of RM12.69 million from the planned sale of a Boeing B737-400SF converted freighter by its indirect subsidiary, MJets Air Sdn Bhd. The agreed price is US$2.8 million (RM11.43 million), the group told Bursa Malaysia.
MJets Air signed the purchase agreement with Mont Gabanon Airlines on 19 October. MMAG said the transaction forms part of a continuing assessment of its aviation operations and assets.
The group attributed higher operating costs and weaker charter demand to geopolitical tensions, global uncertainty and sharply rising fuel prices. It said demand for the freighter model could not produce enough revenue to meet operating costs.
MJets Air bought the aircraft for US$6.55 million on 24 January 2025. Its unaudited net book value stood at RM24.12 million on 30 September 2026.
The buyer is to provide a US$1 million earnest deposit ahead of an inspection, then pay the US$1.8 million balance once the inspection has been completed satisfactorily. Delivery will take place outside Malaysia at a location agreed by both parties. Completion is expected in the fourth quarter of 2026, subject to unforeseen circumstances.
MMAG said the proceeds would mainly fund MJets Air’s working capital, including payables, operating expenses and lease rental. Its board considered retaining the aircraft commercially unviable without viable deployment plans and said the sale would ease the group’s financial burden.
