KUALA LUMPUR (April 23): Destini Avia Technique Sdn Bhd (DAT), a 50:50 joint venture between Destini Bhd and UK-based Avia Technique Ltd, will undertake repair and overhaul activities on aircraft safety equipment for Malindo Airways Sdn Bhd and Thai Lion Mentari Co Ltd.

DAT is currently servicing the aircraft safety equipment for Malaysia Airlines Bhd, AirAsia Group Bhd and AirAsia X Bhd.

In a statement today, Destini said DAT had today entered into an aircraft safety equipment maintenance support agreement with the two airlines.

Under the agreement, DAT will supply, test, repair and/or overhaul both airlines’ escape slides, oxygen cylinders, crew oxygen bottles and fire extinguishers, emergency locator transmitters, oxygen masks and life preservers.

The tenure of the agreement is three years, with an option to extend for another two years.

"Destini’s management sees that this agreement will have a positive impact on the group’s earnings and overall commercial aviation operations as it expands its customer base," it said.

Malindo and Thai Lion Air are part of Indonesia's Lion Air Group. The two airlines serve over 90 destinations with its fleet of over 80 aircraft that are operating from Malaysia and Thailand.

DAT said it will be able to leverage on the airlines growing fleet as both airlines have expressed their plans to expand their fleet in the near term, in tandem with the growth in passenger traffic in the region.

"DAT is currently looking to expand its capabilities to offer additional value-added services to its customers.

"DAT is also actively seeking to expand its customer base via establishing new bases within the region. In order to achieve this, DAT intends to secure more certifications from aviation regulators within the region," it added.

Shares of Destini closed unchanged at 30.5 sen today, with 9.89 million shares done, bringing a market capitalisation of RM352.35 million.