New Malaysian Airline Strikes $1.5 Billion Deal With Bombardier

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Malaysians are welcoming the announcement of new Malaysian airline Flymojo. The airline is privately owned and will be based out of Senai airport in Johor Baharu, near the Singaporean border.

This week, Flymojo announced plans to purchase 20 C Series Jets from Canadian company Bombardier at a cost of almost US$1.5 billion. The single-aisle, 110-seat jets will be the first of their kind flown by an Asian airline and fill the gap between smaller planes and the Boeing 737s and Airbus A320 aircraft currently in use.

The plans, made public at the Langkawi International Maritime and Aerospace exhibition with Malaysian Prime Minister Datuk Seri Najib Razak in attendance, has some analysts puzzled. Competition among Southeast Asian airlines is increasingly fierce, and the Malaysian government is currently restructuring flag carrier Malaysia Airlines.

Flymojo executives, however, appear unfazed. According to managing director Janardhanan Gopala Krishnan, the airline will begin flying in the first quarter of 2016.

The arrival of the new carrier will cement Senai as a regional travel and logistics hub and support the significant government development already underway in the region. The startup will be the only airline using Malaysia’s Southern Corridor as a base, and new routes are expected between Sabah and Sarawak, as well as regionally.

As interest in living, retiring, and investing in Malaysia grows, developing transportation links to the country will prove important in maintaining the growing interest.

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