Malaysian logistics firm Sin-Kung Logistics Bhd is poised to introduce air cargo services this year after acquiring Prima Air Sdn Bhd (PASB).

The company has confirmed the successful acquisition of Prima Air for RM20.7 million (approximately US$4.7 million) on March 13, a crucial milestone in its plans to roll out air cargo services, reportedly by the third quarter of 2025.

"The Board wishes to announce that the Proposed Acquisition has been completed on 13 March 2025, following the full settlement of the Balance Purchase Consideration to the Vendors," Sin-Kung said in a statement. 

"Pursuant to the completion of the Proposed Acquisition, PASB has become a wholly-owned subsidiary of SKL."

The company noted that the purchase is a good opportunity to enter the air cargo industry, given the expected increased demand for electronics, e-commerce, and perishables.

"The Proposed Acquisition offers a strategic opportunity to acquire PASB which holds the Air Service Permit and Air Operator Certificate that will allow SKL and its subsidiaries (SKL Group or the Group) to expand its service offerings to include the provision of private jet charter as well as air freight cargo services to its existing customers comprising the airlines as well as local and international freight forwarders," Sin-Kung Logistics said in an initial announcement in October last year.

"Furthermore, the Proposed Acquisition enhances its service network to include cross-border air logistics services as well as underserved routes."

It added that following the completion of the proposed acquisition, SKL Group is able to offer air feeder services and expects to enter into cargo interline agreements with its airline customers to establish a strategic interline partnership to transport each other’s shipments on specific routes.

"The Proposed Acquisition will also enable SKL Group to offer full supply chain solutions for its local and international freight forwarders."

"As the expansion of such services and network complements the current airport-to-airport road feeder services offered to customers of SKL, the Proposed Acquisition further strengthens its competitive position in the logistics industry in Malaysia and Singapore," it added.

Sin-Kung will reportedly lease three aircraft by the end of 2025 and the company expects delivery of its first aircraft by May or June 2025.