Transport minister says tighter licence terms for new airlines needed after MYAirline troubles
KUALA LUMPUR, Nov 7 — Putrajaya is looking to revise the operating licence conditions for new airlines in the country, Transport Minister Anthony Loke told Bloomberg in an interview published yesterday.
The proposed review comes nearly a month after a local budget carrier MYAirline cited financial woes as reason for abruptly stopping its operations, less than a year after taking to the skies, stranding thousands of its domestic and regional passengers.
“The process has to be strengthened but not to the point where we immediately close our gate.
“Then you end up creating a ringfence for existing players, that no others will come in,” Loke was quoted as saying.
He said there is a need for more comprehensive checks on potential airline companies to ensure they are financially strong and sound.
He said that ensuring financial sustainability is a major challenge for airport operators in Malaysia.
He added that Malaysia’s biggest airport operator, Malaysia Airports Holdings Bhd (MAHB), manages 39 airports nationwide, but not all return a profit as some of them rely on government funds to remain open.
MYAirline announced an indefinite suspension of its operations on October 12, just 10 months after flying, attributing the decision to financial problems.
Police are investigating the airline’s co-founder and several other companies in which the latter is said to hold shares as a director for possible money laundering offences.
Several people including the co-founder and two other family members have been arrested, but the trio have since been released on police bail.
No one has been charged so far.
But the Civil Aviation Authority of Malaysia suspended MYAirline's air operator certificate on October 16, for 90 days.
