A DAP lawmaker has questioned whether the government's decision to introduce Malindo Air as a new low-cost airline in Malaysia amounts to "cronyism".

NONE Petaling Jaya Utara MP Tony Pua (left) said Prime Minister Najib Abdul Razak had announced the arrival of Malindo Air on Sept 12 last year.

However, a parliamentary reply shows that Malindo Air was only given an aviation licence in Malaysia on Feb 28 this year.

Pua picked up on Najib's announcement of the start-up of the operations even before an aviation licence was considered and approved in Malaysia.

He also said that the Finance Ministry owns 5.7 percent of the National Aerospace and Defence Industries Sdn Bhd (Nadi), the main shareholder in Malindo Air.

NONE Malindo Air is a joint venture between Nadi and PT Lion Group, an airline company that Pua alleged has a “suspicious track record in Indonesia and abroad”.

Furthermore, he said, two children of Umno leader Jamaluddin Jarjis hold shares in Nadi as well.

"We welcome competition with the airline sector in Malaysia. But the licence that has been offered to Malindo Air is very suspicious and questions of integrity pop up over financial and security issues," Pua said.

Lion Mentari Air, an Indonesian airline, is barred from the European Union due to "safety concerns", he noted.

In April, a Lion Air plane overshot the runway in Bali, Indonesia, and crashed into the sea. However, there were no casualties.

"This proves that Malindo Air was given outstanding support by the prime minister himself (to the point that) the company's shortcomings are being (overlooked)," Pua added.

Malaysiakini has contacted Nadi and is awaiting its comments on the allegations.