Thursday 28 Mar 2024
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KUALA LUMPUR (May 16): The Malaysian government will be stricter in issuing airline licences, following the problems faced by Rayani Air Sdn Bhd which resulted in the suspension of its licence, said Deputy Transport Minister Datuk Aziz Kaprawi.

Aziz said the stricter rules included checking on the financial background of the applicants.

"We have to beef up (the approval process) and be stricter with the SOP (standard operation procedure) for all airlines," he told reporters at the Parliament lobby today.

He said the Malaysian Aviation Commission, which was established last year, will ensure all airlines are financially sound.

Stressing that Rayani's problems were related mainly to financial and management issues, he disagreed with the suggestion that the Department of Civil Aviation (DCA) had overlooked requirements when granting the airline an operating licence.

"When they first presented (their proposal) to the government, they had experienced personnel, but later, some of these experience personnel left the company and jeopardized the management of the company," he added.

Rayani Air, the first Shariah airlines in the world, had on April 11 ceased operations temporarily, due to financial difficulties. The government subsequently suspended its licence.

The airline has submitted a report to the DCA on the matter, and the department has said it would analyse the statements by the airline’s management, before deciding on action to be taken.

On April 22, staff from Rayani Air's operations and engineering division said they were in talks with several investors to buy a majority stake in the airline, from chief executive officer Ravi Alagendrran. They also said they did not want Ravi to lead the company.

However, the CEO deemed the staffs' plan childish and said the airline is in the midst of finalising a deal with an investor, to acquire a 51% equity in the company.

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