Region Air goes into receivership; Orion formed

SINGAPORE - Region Air, the aircraft leasing company, has been placed in receivership after defaulting on payments to several companies, a local newspaper reported today.

The move however does not mean the end of Ong Beng Seng's interests in this field.

The Singapore businessman behind the company, which was originally set up by Prithpal Singh and a partner in 1988 before it was absorbed into the Ong empire, has set up another aircraft leasing company, Orion Air.

The new company is headed by Joseph Won and will continue the business of aircraft leasing.

The local newspaper, quoting sources, stated that the receivership "was not caused by contracting demand due to the SARS crisis or the Iraq war.

"It seems to have been sparked, they said, by Region Air's inability to satisfy the aircraft leasing companies and an apparent financial problem created by an errant employee," said the Streats report.

Region Air first started life as an air charter company operated by Prithpal Singh and his partner. It then became an aircraft leasing company under Ong Beng Seng's watch.

Region Air was the first company to place modern aircraft in Vietnam at the time of the country opening up. The first Airbus 310 flown by Vietnam Airlines was leased by Region Air.

It saw a niche in leasing aircraft to less developed countries.

One of its more recent moves however, taking a 49 percent stake in Myanmar Air International, has not been smooth flying.

It is understood that the Burmese government recently decided to give away international air rights to another airline company to fly to Yangon.

It is unclear what will happen to Region Air's venture in Myanmar following this latest development.