KUALA LUMPUR: MYAirline Sdn Bhd is keeping mum on news that a new investor from the Middle East has emerged, citing non-disclosure agreements (NDAs).
"At this moment we're unable to confirm as we are still in certain discussions that are under NDAs. We will be issuing a statement once we have news to share," the carrier said.
Rumours that MYAirline is in talks with a Middle-Eastern based white knight have been rife in the local aviation scene recently.
Interestingly, Transport Minister Anthony Loke said earlier today that the ministry will be meeting with MYAirline to discuss about the talks it had with the rumoured investor.
Business Times learnt that there were parties who were interested to invest in the financially ailing carrier since last year but talks fell flat as the supposed investors could not agree on the terms and conditions set by the airline.
In Oct last year, Business Times reported that a potential investor was believed to be pulled out of the deal to buy a controlling stake of MYAirline at the 11th hour.
This led the airline to suspend flight operations on Oct 12.
Industry insiders have questioned the rumoured investment saying that resuming operations would require high capital as MYAirline has no fleet and licences to operate flights.
"Logically, why would someone want to invest in a business that has high operating cost, high competition with other Malaysian-based airlines, and the company has no aircraft left, no licenses and most of the staff were gone," an insider questioned, adding that airport slots in the region could also be an issue for MYAirline.
Another industry insider questioned MYAirline's ability to secure aircraft as the commercial airplanes rental market is very competitive and expensive right now with narrow-body planes in high demand.
MYAirline lost all 10 of its Airbus A320s – four were takenover by rival AirAsia while the rest were returned to its international aircraft lessors.
The carrier's air operator certificate (AOC) was suspended for 90 days by the Civil Aviation Authority of Malaysia (CAAM) and the air service license (ASL) was suspended by the Malaysian Aviation Commission (Mavcom) on Nov 1 last year.
Earlier today Loke said MYAirline should settle all refunds to its affected passengers and pay all the overdue salaries to its own staff prior to securing a new investor. /ends