MYAirline in talks with new investors

 

MYAirline says potential investors have expressed interest in reviving the brand. (AP pic)

KUALA LUMPUR: MYAirline said today it is in talks with “promising new investors after a sudden and unilateral termination of a share purchase agreement by an investor from the Middle East”.

“In respect of this termination, all options are being considered, including possible legal action,” it said in a statement, Bernama reported.

Other potential investors have expressed interest in reviving the brand, it said.

MYAirline said it is in “regular contact with all aviation regulators and committed to fulfilling any conditions and requirements mandated by the aviation regulators to regain its licences and resume operations”.

Earlier this month, FMT reported that transport minister Loke Siew Fook said he met with parties looking to invest in the troubled low-cost carrier.

He said the potential backers consist of a partnership between Middle East investors and a local company. However, at that point, Loke said it was premature for the ministry to reveal more details.

“I made it very clear to them that as far as our policies are concerned, 51% (of the airline) must be owned by a local company,” he said.

Loke said the potential investors asked for advice from the ministry on “the way forward” for MYAirline, which abruptly suspended operations on Oct 12 last year after citing “severe financial challenges” 11 months after it took to the skies.

He told the potential investors that they should look beyond domestic flights and how the airline could position itself to make it “more attractive”.

However, he stressed that any commercial decision the investors make would be entirely up to them. “As far as the government is concerned, they have to comply with all of our processes and regulations,” he said.

Apart from the requirement for 51% local equity, he said, the airline would need to have two licences – an air operator certificate from the Civil Aviation Authority of Malaysia and an air service licence from the Malaysian Aviation Commission.

Last month, Loke stressed that any investor looking to revive MYAirline must make sure all passengers had been given refunds and that monies owed to the staff had been paid. - FMT