KUALA LUMPUR (Feb 29): MyAirline Sdn Bhd is in talks with “promising new investors” after a potential company from the Middle East that was previously interested in investing in the carrier has abruptly withdrawn its intention to do so.

In a statement, MyAirline said the prospective investor had suddenly and unilaterally terminated a share purchase agreement inked between them.

“In respect of this termination, all options are being considered, including possible legal action. Other potential investors have expressed an interest in reviving the brand, known for its commitment to reliability,” MyAirline said.

It added that it is in regular contact with all aviation regulators and that the company is committed to fulfilling any conditions and requirements as mandated to regain its licences and resume operations.

News that the group had lost its potential suitor was announced by Transport Minister Anthony Loke Siew Fook earlier on Thursday.

Loke, Bernama reported, had met the company that had agreed to invest in MyAirline, and that he had shared his views with them on the challenges and potentials of the country’s aviation industry.

He said he had also stated the conditions that the company had to comply with, including resolving the issues of salary payment to employees and refunds to passengers who did not take their flights due to the sudden suspension of the airline’s operations in October last year.

Loke had also made it clear to MyAirline previously that the country’s aviation policy stated 51% must be owned by local companies while any foreign entity can only own up to 49%, after it was reported in January that the carrier had entered the agreement in late December with the investor.

At the time, MyAirline had reportedly said it would allow the group to work towards resuming operations by the middle of this year.

“Yesterday (Wednesday), we received a letter from the company that previously said it wanted to invest in MYAirline. It informed the government through a letter to the Malaysian Aviation Commission (Mavcom) that it had cancelled its intention.

“The company has terminated the agreement. It withdrew its intention to invest in MYAirline. That is the situation at the moment,” Loke told reporters after officiating the Sixth Keretapi Tanah Melayu (KTM) Convocation Ceremony in Batu Gajah, Perak.

MYAirline flew over one million passengers domestically as of June 26, 2023, six months after its inaugural flight as a low-cost carrier on Dec 1, 2022.

But on Oct 12 last year, the carrier suddenly announced that it had suspended its operations with immediate effect, citing financial pressures.

Not all ticket prices for Aidilfitri travel set at RM599

Separately, Loke told reporters that not all ticket prices for the three-day travel period ahead of this year’s Aidilfitri celebrations will be set at RM599, which is the ceiling price that the government announced for a one-way economy class flight ticket from Peninsular Malaysia to Sabah, Sarawak, and Labuan.

He said the setting of the maximum price was done based on the financial ability of the MOT, but not all tickets are sold at the maximum price, as some may be lower.

“That is what we can do so far, as there is no additional allocation for this initiative. I had to find a way to cover this expense, because when we set the maximum price, the balance or shortfall had to be covered by the ministry for the airlines.

“If I ask the airlines to absorb this cost, they will reduce their capacities. Who wants to operate if they lose? They are airlines not owned by the government, but the private sector,” he was quoted as saying by Bernama.

Loke advised passengers to plan their trips in advance, saying flight and train tickets can be purchased as early as six months before the travel dates.