No Bailout For Myairline Says Deputy Minister


 
MYAirline ceased operations last week, citing ‘severe financial challenges’. (Bernama pic)PETALING JAYA: The government has shot down any chance of bailing out MYAirline after it ceased operations last week due to financial constraints.
“The bailout days are over. You know what I mean. You (companies) have to resolve customer (related) issues (on your own),” deputy transport minister Hasbi Habibollah said during the Special Chamber session at the Dewan Rakyat.
He was responding to Lim Lip Eng (PH-Kepong) who wanted the government’s assurance that Putrajaya would not come to the budget airline’s rescue.
Hasbi said the companny was facing several challenges, including delays in finalising the sale of shares to investors, and the weakening value of the ringgit against the US dollar.
“Most of MyAirline’s transactions are in USD, including aircraft leasing and fuel costs, which have seen an increase from US$113 a barrel to US$131 a barrel.”
On Oct 12, the low-cost carrier said it had reached the “extremely painful decision” to suspend operations immediately due to financial challenges, stating that it couldn’t specify a particular timeframe for when it could resume operations.
After news of the suspension broke, transport minister Loke Siew Fook criticised MYAirline for its hasty decision affecting over 125,000 MYAirline passengers who had already purchased more than RM20 million worth of tickets until March 2024.
Describing the airline’s actions as “irresponsible” and “unjustifiable,” Loke said the sudden decision took the transport ministry and the Malaysian Aviation Commission (Mavcom) by surprise.
Earlier today, the Civil Aviation Authority of Malaysia (CAAM) suspended MYAirline’s air operator certificate (AOC) effective immediately for a period of 90 days, pending further investigations.
MYAirline was given 14 days to provide representation to the authorities on the fiasco.
“As of now, we will have to wait for the investigation to complete before taking further action,” Hasbi added. - FMT


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