Troubled MYAirline May Resume Operations By The Middle Of This Year
Transport Minister Loke Siew Fook to meet the low-cost carrier after it reportedly secured an investor from the Middle East.
By Sadho Ram — 12 Jan 2024, 01:16 PM
Troubled MYAirline is said to have finalised a sale and purchase agreement (SPA) with an undisclosed investor from the Middle East
Bernama reported today, 12 January, that the low-cost carrier had signed and secured the agreement in late December last year, citing unnamed sources.
While the sources did not reveal the investor's name, they hoped that this would enable the airline to work towards resuming operations by the middle of this year.
"The first action item, hopefully, is the payment of salaries and refunding passengers," one of the sources was quoted as saying by Bernama.
The start-up carrier, which ceased operations after just 10 months, is said to have submitted an application to the Malaysian Aviation Commission (MAVCOM) for a conditional air service license (ASL)
An application for an ASL usually requires a minimum of 90 days to process.
Subsequently, the airline aims to obtain the Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM) before securing a full ASL to resume operations, reported Bernama.
MAVCOM said the evaluation process for the ASL application would commence upon receiving a complete submission.
"They have to clear the debt as soon as possible to start operating like before," another source told Bernama.
According to Civil Aviation Directives 6004, scheduled operations typically require a fleet of a minimum of two aircraft, while non-scheduled operations may have reduced specifications.
MYAirline first needs to clear overdue salary payments for about 900 employees and refund a whopping 117,000 passengers
According to MAVCOM, as of 8 January, 4,304 consumers have been assisted with refunds through the chargeback process, and some have begun receiving refunds from their respective banks.
Meanwhile, Transport Minister Loke Siew Fook said he plans to meet with the troubled low-cost carrier to discuss its future
Loke expressed cautious optimism about the airline's potential revival but outlined specific conditions that must be met for discussions to proceed, reported FMT.
"There are a few conditions that will be imposed if they want to restart operations. They must make sure all their passengers are refunded and they must make sure whatever [is owed] to their staff must be paid.
"If they can fulfil these two conditions, only then can we start to talk," he was quoted as saying.
