Potential MYAirline investor cancels deal, says Loke

  • Nation
  • Thursday, 29 Feb 2024

BATU GAJAH: A company that was supposed to invest in MYAirline Sdn Bhd has pulled out from the deal, says Anthony Loke.

The Transport Minister said the ministry received a letter from the company on Wednesday (Feb 28) stating that they would not be continuing with their intention of investing in the airline and that they would be terminating the memorandum of understanding.

“So this is the current situation in connection with the issue regarding MYAirline. On their next step to look for other investors, I will not be able to answer,” he told a press conference after attending KTMB’s Academy convocation ceremony here on Thursday. (Feb 29)

Loke said when he met with the potential investor last month, he had told them that they needed to comply with all processes in terms of regulations.

“During the meeting, I told them that all refunds must be made to customers and that issues concerning salaries of staff must also be settled.

“However, in the letter that we received yesterday, the investor had decided to withdraw from the deal,” he added.

MYAirline suspended its operations on Oct 12 last year, leaving about 125,000 passengers with tickets worth RM20mil in the lurch.

It has yet to pay the salaries of about 900 employees, and the reimbursement for 117,000 passengers is still ongoing.

In Nov last year, MYAirline said the company was negotiating with 15 potential investors to resolve its financial problems, which included securing capital to refund some RM22mil to customers for tickets they had purchased before its abrupt suspension.

The company said it was currently at an advanced stage of negotiations with at least two of the potential investors.

Bernama reported on Jan 12, quoting sources, that MYAirline had secured and signed a sale and purchase agreement in late Dec 2023 with an investor from the Middle East.

On complaints received from people, especially those with families, that the maximum fare of RM599 for a one-way economy class flight from peninsular to Sabah, Sarawak and Labuan, applicable for travel three days before Hari Raya Aidilfitri, was expensive, Loke said it was the maximum price.

He said if people planned their trip accordingly, they would be able to get cheaper tickets.

“It is not that the price of the tickets cost RM599 each, but that is the maximum price. The pricing of the tickets is a lot cheaper compared to previously.

“Airline tickets can be purchased six months in advance. This is an initiative by the ministry. We cannot ask the airline companies to absorb the difference," he said.

“We cannot push the airline companies until they suffer losses. We do not want to encounter problems faced by MYAirline.

“If the airlines close shop, passengers are not able to fly to their destinations,” he added.

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