Transmile to enter U.S. express market

Transmile to enter U.S. express market

Malaysia's Transmile Group Bhd, which currently operates intra-Asia air express services, is planning to enter the $30 billion-a-year U.S. overnight courier market.

Published reports quoted chief executive Gan Boon Aun as saying the group was in the process of obtaining approval from U.S. authorities.

The carrier would use new fifth freedom rights offered by Hong Kong to Malaysia in March to serve the U.S. market.

The air services agreement allows Malaysian airlines and freight operators flying out of Kuala Lumpur to pick up passengers or cargo in Hong Kong on route to Los Angeles.

Gan said the group had no immediate plans to fly beyond Los Angeles.

Gan said the group was considering buying two to three wide-body aircraft that were suitable for long-haul flights, either 747-400 freighters or MD-11 aircraft, both manufactured by Boeing.

Transmile currently has 16 aircraft that carry cargo to 15 Asian cities nightly. It also enjoys fifth freedom rights in Bangkok, Vietnam and Taiwan.

The group's customers include international courier service operators DHL Worldwide Express, United Parcel Service, BAX Global and Danzas-AEI.