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Loke says no compromise: MYAirline must resolve refunds and wages before revival talks

PUTRAJAYA: Transport Minister Anthony Loke said there will be no talks on revival plans until MYAirline resolves refund matters and settles unpaid staff wages.

He revealed that he will be meeting with MYAirline today, that is expected to delve into details of a potential revival proposal in light of the carrier's reported success in securing a Middle Eastern investor.

Bernama reported that the low-cost carrier inked a sale and purchase agreement (SPA) with a Middle Eastern investor in December 2023, with plans to recommence operations by mid-year.

"We are meeting them shortly, in fact, today. We want to hear from them to know what the proposal is and their current status.

"However, a few conditions will be imposed if they want to restart operations.

"First, they have to ensure that all the previous refunds are made. Secondly, whatever is owed (in terms of wages and claims) to the staff must be paid. If they can fulfil these two conditions, then we will start talking.

"Without these two, there is no way we can compromise," Loke said while pointing out that MYAirline must also observe safety standards and follow standard application procedures.

Bernama reports suggest that, following the entry of the new investor, the airline has initiated the process of applying for a conditional air service licence (ASL) with the Malaysian Aviation Commission (Mavcom).

The subsequent stages involve securing the Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM) before obtaining a complete ASL for its operational activities.

Also, when queried on whether the airline licence would still be majority-held (at least 51%) by Malaysians, Loke said that it is the country's policy one must adhere to.

"The Malaysian Aviation Commission (Mavcom) would go through a thorough process to ensure that. That is the (country's) policy, that is our law," he said.

MYAirline announced the suspension of its flight operations starting Oct 12 last year, citing financial pressures, less than a year into its operational tenure.

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