Friday 23 Feb 2024
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KUALA LUMPUR (Oct 31): Cash-strapped MYAirline Sdn Bhd is currently in "advanced" negotiations with two potential investors out of more than 15 proposals received as they aim to finalize a recapitalization package that will resurrect their operations which have been suspended for over two weeks since October 12.

“The team is working around the clock to finalise a recapitalisation package that will revive our operations. This will also facilitate the reimbursement of monies to affected passengers as well as payment of salary and statutory dues,” it said in a statement on Tuesday to update its temporary suspension of commercial air travel operations.

With reference to the show cause notices issued by the Civil Aviation Authority Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom), MYAirline updated that it has formally responded to these two agencies last week within the deadlines.

Contents of MYAirline’s responses to CAAM and Mavcom were not disclosed in the statement.

On the matter of refunds for affected passengers, the airline said it has received over 30,000 calls and emails which are being attended to by its customer care team.

“As stated earlier, we aim to make good on all refunds as soon as we receive the recapitalisation package from our investors. We will continue to provide updates to our valued passengers and related stakeholders once they are made available,” it said.

MYAirline reiterated that it has not terminated or placed any staff on unpaid leave since Oct 12.

“We do understand the difficulties faced by our staff and we would like to assure them that we are doing everything in our power to address their plight.

“We would encourage our staff to cooperate with us in this difficult time as we have their best interests at heart,” it said.

“Besides an internal ‘Tabung Ihsan’ which was set up to collect donations from within MYAirline for employees most adversely affected, we have also made arrangements with Perkeso (Social Security Organisation) for our employees to apply for the Employee Insurance Scheme (EIS) to ease their financial burden during this period,” it added.

Subsequent to the suspension, Mavcom has ordered MYAirline to submit a written justification by Oct 27 for an investigation into the 10-month old airline, whose owners are also facing probe from the police to facilitate investigations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

MYAirline is racing to find a white knight ahead of a Nov 14 deadline, which is the expiry of its air service licence, to shore up its capital and avoid a shutdown.

Edited ByIsabelle Francis
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