KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) holds MYAirline Sdn Bhd accountable for refunds to travellers affected by the carrier's suspension of flight operations starting today (Oct 12).
Mavcom, in a statement today said, it instructed MYAirline to discontinue the sale and booking of its flights from all booking platforms until further notice.
The aviation regulator also asked MYAirline to notify affected customers by notifying them of flight suspension and publishing the notification in the carrier's available communication channels.
"The commission stands firm that MYAirline is still liable to refund consumers who have purchased tickets with the airline but are unable to travel," Mavcom said in a statement today.
Mavcom is investigating MYAirline based on internal reviews and complaints received on the airline's unpaid statutory payments to its employees, among others.
More information will be provided in due course, said the aviation regulator.
Business Times reported earlier that a potential new investor had pulled out of the deal to buy a controlling stake in MYAirline at the 11th hour.
Sources said the deal was supposed to be concluded yesterday (Oct 11), which would have provided a life support to the airline that was facing a cash crunch.
The airline announced at 5:36am today that it had suspended all of its flight operations starting today until further notice.
"The suspension comes at the 11th hour. This shouldn't have been the case. Expect chaos at the airport (Kuala Lumpur International Airport Terminal 2) today," one of the sources told Business Times.
Business Times had first reported on Oct 9 that MYAirline was struggling financially and it was not able to pay its services providers and employees' salaries on time.