SKS Airways (KI, Johor Bahru) has temporarily lost its air operator's certificate (AOC), according to Civil Aviation Authority of Malaysia (CAAM) records. CAAM CEO Norazman Mahmud told The Edge business news outlet that the 90-day suspension took effect on October 22, because SKS “did not satisfy the AOC requirements.”

Norazman says the carrier must “correct its deficiencies” during the suspension, after which a CAAM safety audit will occur to decide whether to lift the suspension or revoke the permit altogether. SKS's AOC was valid until September 30, 2025, although its Malaysian Aviation Commission (MAVCOM) issued air services licence only runs through December 31, 2024. Both are needed to run an airline in Malaysia.

SKS Airways, owned by the Johor-based SKS Group of companies (which is in turn controlled by businessman Alan Sim See Kiong), began scheduled services in early 2022 with a pair of DHC-6-300s. The flights focused on connecting the Malaysian mainland with island resorts. In May 2023, SKS signed an agreement with Azorra and Embraer to lease ten E195-E2s to "open new growth opportunities in the region." The E2 deliveries were then due to begin in 2024.

In November 2023, SKS suspended its Twin Otter operations amid reports of a financial shortfall. At the time, the carrier said its plans to take the E2s remained intact. However, in July this year, ch-aviation reported that the E2 lease deal was off because SKS could not secure enough slots at Kuala Lumpur Subang to make operating the jets viable.

SKS envisaged operating a substantial scheduled jet network out of the freshly redeveloped Subang airport, filing slot applications to cover around 40 daily flights. The airport operator, Malaysia Airports Holdings Bhd, only granted SKS enough slots for five or six daily flights. However, Malaysian media reported at the time that the problem was more than not getting enough slots. It was reported that SKS faced significant scrutiny from CAAM while trying to secure certification to operate the jets, and there continued to be funding challenges.

SKS Airways lost MYR32.28 million ringgit (USD7.4 million) in the 12 months to December 31, 2023, and the airline reported accumulated losses of MYR85.67 million (USD19.6 million) to the same date.

ch-aviation has contacted SKS Airways for comment.