DESTINI AR 2017

41 DESTINI BERHAD Annual Report 2017 Defence • PATNCI was reported at RM33.15 million in FY2017 against RM6.26 million the year before. This was on the back of an increase in revenue to the sum of RM277.58 million from RM103.16 million in FY2016. • The increase in earnings came from recurring maintenance, repair and overhaul (MRO) and supply of safety and survival related equipment for the Royal Malaysian Airforce. • During the year, Destini expanded its defence aviation capabilities into the supply of helicopters. Previously the Group only performed these services on military aircrafts. • With the expansion into the supply of helicopters, Destini will also be able to extend its existing MRO capabilities from aircrafts onto helicopters. • Destini intends to utilise its expertise in this sector to expand its geographical footprint to other foreign agencies. Commercial • The Group’s commercial aviation reported a loss after tax and non-controlling (LATCNI) of RM3.02 million on with revenue of RM4.71 million in FY2017. The year before, the Group saw LATCNI of RM3.66 million on revenue of RM2.58 million. • This business segment saw high operational cost from the recruitment of qualified service engineers, equipment and certifications. • Destini grew its technical line maintenance capabilities and increased its line of services which came from after acquiring additional commercial aviation certifications. • The Group had also obtained additional license for servicing slide rafts for commercial aircrafts from the Civil Aviation Authority of Malaysia. With a newly equipped servicing facility, Destini is set to expand its customer base in the industry. • From technical line maintenance, Destini has strengthened its position to enter into ground handling services to various airports across the country. • With the expansion of its service range, the performance of this business segment is expected to outperform our defence aviation business, backed by the projection of a stronger commercial aviation market in the Asian region from an increase in population, an increase in mobility and the growth of low-cost airlines. B U S I N E S S P E R F O R M A N C E R E V I E W AVIATION RM282.29 mil REVENUE RM30.13 mil PATNCI