29-2-2024 (KUALA LUMPUR) In a disappointing turn of events for MYAirline Sdn Bhd, a company that was expected to invest in the airline has decided to withdraw from the deal. Transport Minister Anthony Loke confirmed that the ministry received a letter from the company on Wednesday (Feb 28), stating their intention to terminate the memorandum of understanding and abandon their plans to invest in the airline.
Addressing the press during a convocation ceremony at KTMB’s Academy in (city) on Thursday (Feb 29), Loke expressed the ministry’s awareness of the situation regarding MYAirline. However, he was unable to provide details regarding the airline’s next steps in seeking alternative investors.
Loke revealed that during a meeting with the potential investor last month, he emphasized the need for compliance with regulatory processes. He specifically highlighted the importance of refunding customers and resolving salary issues faced by the airline’s staff.
Regrettably, the letter received by the ministry indicated the investor’s decision to withdraw from the deal, leaving MYAirline in a precarious position. The airline suspended its operations on October 12 last year, leaving approximately 125,000 passengers holding tickets worth RM20 million in uncertainty. Furthermore, around 900 employees have yet to receive their salaries, and the reimbursement process for 117,000 affected passengers is still ongoing.
In November last year, MYAirline stated that it was in negotiations with 15 potential investors to address its financial problems, including securing capital to refund the RM22 million owed to customers for purchased tickets prior to the abrupt suspension.
Earlier reports from Bernama on January 12 indicated that MYAirline had signed a sale and purchase agreement with an investor from the Middle East in late December 2023, raising hopes for a resolution.
Responding to complaints about the high fares for one-way economy class flights from Peninsular Malaysia to Sabah, Sarawak, and Labuan, especially during the three days before Hari Raya Aidilfitri, Loke clarified that the maximum fare of RM599 was not the actual price but the upper limit. He encouraged passengers to plan their trips in advance to secure cheaper tickets, emphasizing that the pricing now was significantly lower compared to previous rates.
Loke stressed the importance of striking a balance between reasonable pricing and ensuring the sustainability of airline companies. The ministry aims to avoid the problems faced by MYAirline and prevent disruptions to passengers’ travel plans.
