[UPDATED] No Plan B, MYAirline needs up to RM22 mil for refunds: company official

Airline sets up fund to support staffers who have not received salaries since September

5:06 PM MYT

 

SUBANG JAYA – There is no apparent Plan B in the process of refunding some 125,000 MYAirlines passengers affected by sudden operation shutdown while awaiting funding from new investors to kick in.

This was said repeatedly by MYAirline interim accountable executive Datuk Seri Azharuddin Abdul Rahman at a press conference at the low-cost airlines headquarters here today.

He also said that the airlines would require around RM20 to RM22 million just to refund customers after the recent fiasco that affected its passengers and some 900 staffers locally.

Azharuddin said the airline has set up a fund internally to support staffers who have not received their salaries since September.

“We have set up a fund, headed by the human resources department, where everybody gets to contribute to help out one another.

“So far, 207 employees have been given RM100 each. The amount is not much, but it’s a meaningful support we can give at the moment.”

He also said MYAirline remains “very optimistic and positive” about securing new investors and restarting the company’s business continuity.  

“We are very positive that it will be successful, because from the talks we had, since last week, there are investors that are very interested to come in…it’s just the matter of the terms and provision that we have to discuss further and agree upon.  

“(However), I cannot promise on the timeline to start the refund process. But I can promise to the passengers who asked for refunds, that once we get the money, we will issue the refunds.” 

He also said that the airline’s upper management was left in the dark on the reason behind their last investors pull out at the 11th hour, which has caused the recent fiasco. 

Regarding rumours of MYAirlines’s aircraft to be taken back by the lessors, Azharuddin admitted that the management would need the necessary funds to retain them.  

“Yes we need the money (to retain them). We are also going to wait for the fundings by the new investors to come in for that particular requirement (to make necessary payment). 

“But we are currently in talks with the aircraft lessors for an extension for the aircraft to be with us.” 

However, positive for brighter days ahead in the sky, Azharuddin said there’s nothing else to do but move forward and come up with a better business continuity plan, while retaining their identity in striving to be a better airline next time around.  

Earlier, Azharuddin started the press conference by apologising to all affected parties, especially the 125,000 affected passengers from their recent and sudden operation suspension on Thursday (October 12).  

He pinpointed that the sudden nature of the airline’s 11th hour suspension of operations was due to investor withdrawal, as well as mentioning the lack of a contingency plan on the part of its management. – October 16, 2023

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