Potential MYAirline investor withdraws - minister

A company said to be interested in investing in MYAirline Sdn Bhd has withdrawn from its intention to do so, said Transport Minister Anthony Loke.

“Yesterday, we received a letter from the company that previously said it wanted to invest in MYAirline.

“It informed the government through its letter to the Malaysian Civil Aviation Commission (Mavcom) that it has cancelled its intention.

“The company has terminated the agreement. Hence, it withdrew from the intention to invest in MYAirline, so, that is the situation at the moment,” he said.

Loke was speaking at a press conference after officiating the Sixth Keretapi Tanah Melayu (KTM) Convocation Ceremony in Batu Gajah, Perak, today.

He said the company that met him previously had signed an agreement to invest in MYAirline but was subject to conditions.

The minister said that in the meeting, he shared his views on the challenges and potential of the country’s aviation industry.

He also stated the conditions the company had to comply with, including resolving salary payments for employees and refunds to passengers who could not go on flights due to the suspension of the airline’s operations.

Meanwhile, Loke explained that not all flights from the peninsula to the Borneo territories for a three-day travel period ahead of this year’s Hari Raya will be priced at RM599.

He said that amount is just the maximum and some tickets may be lower.

No price could satisfy everyone, the minister said, adding that the setting of the maximum price was done based on the financial ability of his ministry.

“That is what we can do so far as there is no additional allocation for this initiative.

“I had to find a way to cover this expense because when we set the maximum price, the balance or shortfall has to be covered by the ministry to the airlines.

“If I ask the airlines to absorb this cost, they will reduce capacity. Who wants to operate if they lose because there are airlines not owned by the government, but the private sector,” he said.

Therefore, Loke advised passengers to plan earlier because flight and train tickets can be purchased six months before the travel date.

On Feb 24, Loke said the government set a maximum price of RM599 for a one-way economy class flight ticket from the peninsula to Sabah, Sarawak, and Labuan for a three-day travel period ahead of the Aidilfitri celebrations.

- Bernama

MYAirline in talks with new investors

MYAirline secures investor from the Middle East – sources

MYAirline founder fails to strike out 15 investors’ lawsuit

No financial distress signs at MYAirline pre-suspension, Mavcom asserts