MYAirline negotiating with 15 potential investors

PETALING JAYA: MYAirline is currently negotiating with 15 potential investors to resolve its financial issues, which, among others, involve refunding RM22mil to customers for tickets purchased.

In a statement on Tuesday (Oct 31), MyAirline said it is currently in an advanced stage of negotiations with at least two potential investors.

“The team is working around the clock to finalise a recapitalisation package to revive our operations.

“This will also facilitate the reimbursement of monies to affected passengers as well as payment of salary and statutory dues,” the company said.

MyAirline said it has received over 30,000 calls and emails from affected passengers regarding the delay in their refunds and assured that the firm will address all complaints received.

ALSO READ: MYAirline and i-Serve case: Remand for detained suspects extended

The company also pledged to keep affected customers updated on when they could receive their refunds.

Regarding the show cause notices issued by the Civil Aviation Authority Malaysia (CAAM) and the Malaysian Aviation Commission (MAVCOM), MyAirline said it responded to the two agencies on Oct 25 and Oct 27, respectively, adding that it was done within the deadlines imposed.

At the same time, the budget carrier said it would continue to protect the well-being of its employees, adding that it has not terminated any of its staff, nor are they placed on unpaid leave.

“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.

ALSO READ: Mavcom orders MYAirline to submit written explanation by Oct 27

“We would encourage our staff to cooperate in this difficult time as we have their best interests at heart.

“Besides an internal ‘Tabung Ihsan’ which was setup to collect donations from within MYAirline for employees most adversely affected, we have also made arrangements with Socso for our employees to apply for the Employee Insurance Scheme (EIS) to ease their financial burden during this period,” read the statement.

On Oct 12, MyAirline announced an abrupt suspension of its operations, citing financial pressures less than 11 months after it began operation.

ALSO READ: Four suspects remanded in MYAirline, i-Serve probe

The cancellation of the airline’s 40 flights stranded thousands of passengers on that day.

According to MyAirline interim accountable executive Datuk Seri Azharuddin Rahman on Oct 17, the financial issue arose after its investors pulled the rug from under the company at the eleventh hour.

Azharuddin said the company did not have a contingency plan, leading to the halt of operations.

Currently, 125,000 passengers are awaiting refunds amounting to RM22mil for tickets they purchased, while over 900 of its employees have yet to receive their salaries since September.

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