Refund your customers first, Loke on MYAirline acquisition talks

Minister says company must comply with conditions, including refunds, employee payments, before allowed to resume operations

12:57 PM MYT

 

PUTRAJAYA – The Transport Ministry remains cautious over possible acquisition talks involving embattled local carrier MYAirline Sdn Bhd, with minister Anthony Loke meeting the top management today.

Loke said the company has to comply with several conditions, including refunds and staff payments, before it is allowed to resume operations.

“We will meet them shortly, we want to hear their explanation first. We are not sure what the proposal and conditions are (set by the buyer),” he said at a press conference after a ministry event here today.

“First, they should show their efforts (seriousness) in ensuring that all refund payments are being made. Every customer should be refunded.

“Secondly, all the agreements made with the staff must be honoured. If (MYAirline) can fulfil these requirements, then we can start talking. Without fulfilling these two conditions, it is difficult for us to compromise.

“Thirdly, whether it is the issue of security or application (to resume), (MYAirline) must comply with the existing procedures.”

Loke added that at least half, or 51%, of the airline shares must be owned by Malaysians.

“That is our policy. The Malaysian Aviation Commission will look at all these processes carefully.”

MYAirline reportedly secured and signed a sale and purchase agreement in late December 2023 with an investor from the Middle East.

Sources hope MYAirline will be able to work towards resuming operations by the middle of the year.

“The first action item, hopefully, is the payment of salaries and refunding passengers.” – January 12, 2024

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