BATU GAJAH, Feb 29 — A company which had previously expressed interest in investing in MYAirline Sdn Bhd has withdrawn from its intention to do so, said Transport Minister Anthony Loke.
The company that met the minister had already signed an agreement to invest in MYAirline, but which was subject to several conditions in the agreement.
He said that in the meeting, he also shared his views on the challenges and potentials of the country’s aviation industry, in addition to stating the conditions which the company had to comply with.
This includes resolving the issues of salary payment for MYAirline employees and refunds to passengers who did not take flights due to the suspension of the airline’s operations.
“Yesterday, we received a letter from the company that previously said it wanted to invest in MYAirline.
“It informed the government through its letter to the Malaysian Civil Aviation Commission (Mavcom) that it has cancelled its intention.
“The company has terminated the agreement. Hence, it withdrew from the intention to invest in MYAirline, so that is the situation at the moment,” Loke said during a press conference after officiating the Sixth Keretapi Tanah Melayu (KTM) Convocation Ceremony today.
On February 7, he said the Transport Ministry (MOT) had met with the carrier’s new potential investors and said any commercial decisions were entirely up to the airline’s management.
Loke added that it was up to the airline to take any follow-up action, but the company still had to comply with its obligations, namely the payment of employee wages and refunds to passengers.
Meanwhile, the minister said that not all ticket prices are set at the rate of RM599, which is the maximum price for a one-way economy class flight ticket from the Peninsula to Sabah, Sarawak, and Labuan for a three-day travel period ahead of this year’s Aidilfitri celebration as previously announced.
He said no one price would satisfy everyone, as the setting of the maximum price is done based on the MOT’s financial ability, and not all tickets are sold at the maximum price, as some may be lower.
“That is what we can do so far as there is no additional allocation for this initiative.
“I had to find a way to cover this expense because when we set the maximum price, the balance or shortfall has to be covered by the ministry to the airlines.
“If I ask the airlines to absorb this cost, they will reduce capacity. Who wants to operate if they lose because there are airlines not owned by the government, but the private sector,” Loke said.
Therefore, he advised passengers to plan their trip in advance because flight and train tickets can be purchased as early as six months before the travel date.
On February 24, Loke said the government had set a maximum price of RM599 for a one-way economy class flight ticket from the Peninsula to Sabah, Sarawak, and Labuan for a three-day travel period ahead of this year’s Aidilfitri celebrations.
— Bernama
