KUALA LUMPUR: MYAirline Sdn Bhd's supposedly final lifeline to resume operations is believed to have come to an end as its potential new investors are said to have pulled the plug albeit not on the 11th hour.
Business Times learnt that the potential new Middle Eastern investors decided not to pursue their interest any longer in the financially troubled low-cost carrier (LCC).
"There is bad news. The new investors for MYAirline have pulled out from MYAirline," sources told Business Times.
The break-up of the deal raises questions on the status of the refund payment that MYAirline had to pay to some 125,000 customers, the unpaid salaries and remuneration that it owes to its employees as well as the bills that are yet to be paid to its services providers.
Another set of questions that are left unanswered are what would be the future of the company and would it be declared as bankrupt?
Business Times has contacted MYAirline for comment and yet to receive a response as at press time.
On Feb 6, the Civil Aviation Authority of Malaysia (CAAM) confirmed that MYAirline's 10th and final Airbus A320 aircraft had been deregistered.
Currently the airline, which was established to stir the domestic and regional LCC markets, is fleetless.
It also does not have the air operator certificate (AOC) and air service licence (ASL) - two certificates that airlines need to have to operate a scheduled commercial airline operations in Malaysia.
One of the requirements for AOC issuance and renewal based on CAAM's Civil Aviation Directives (CAD) - 6004 is that an airline that wants to operate scheduled flights must have a minimum fleet of two aircraft.
On Jan 26, CAAM told Business Times that it had extended the suspension of MYAirline's AOC for another three months until April 14.
Another aviation regulator, the Malaysian Aviation Commission (Mavcom) had previously confirmed that it had received the new ASL application from MYAirline.
The carrier would need to secure a conditional ASL from Mavcom first before re-applying for AOC from CAAM and back to Mavcom for a full ASL prior to resuming its flight operations.
On Feb 7, Transport Minister Anthony Loke said he had met with MYAirline and its potential new investors and discussed on the way forward for the airline and how it would position itself should it resume operations.
When asked if the new investors were from the Middle East, Loke said MYAirline had informed the ministry that there were partners from the Middle East and a local company.
On Jan 12, Loke said a few conditions must be imposed before MYAirline could be back in business.
These included ensuring that all refunds are paid to affected passengers and payments to its staff are made as well.
"Without these two (conditions) no way, we can't compromise on this and thirdly in terms of their safety and such they must follow normal procedure," Loke was quoted by local media.