Rayani Air: Govt should provide guarantee for licence approval - PPIM

The Malaysian Muslim Consumers' Association (PPIM) has asked the government to provide a guarantee for the licence application approval to Rayani Air following the problems faced by its owner.

PPIM chief activist Datuk Nadzim Johan said this would enable the airline's owner to look for new investors to inject funds and continue with the process of taking over the company.

"With the guarantee for the licence approval, the owner can use the licence to look for a new partner to pay the arrears including payment of salaries, allowances and ticket refunds, and this problem could be settled amicably and quickly," he said in a press conference here today.

On Aug 8, Deputy Transport Minister Datuk Ab Aziz Kaprawi said the airline must submit a new application to the Department of Civil Aviation (DCA) and the Malaysian Aviation Commission (Mavcom) if it wants to resume operations.

Rayani Air Chief Executive Officer Ravi Alagendrran in his Facebook account on Aug 7 said the airline was taking efforts so that the DCA and Mavcom would give it a second chance to operate.

In June this year, the DCA had cancelled the air operator's certificate (AOC) of Rayani Air after it conducted a full investigation into the administration of the company and an operational safety audit.

Mavcom also cancelled the airline's Air Service Licence (ASL) after finding that the company had violated conditions set out in the ASL and was in a weak financial position to continue operations.

Also present at the press conference were the representative of legal adviser to PPIM Mohamad Siddiq Azani; Rayani Air employees' representative Azaharudin Mohd and customers' representative Azlan Syan Latang.

Azaharudin, who represents some 415 Rayani Air employees, claimed that his employer failed to pay salary arrears as well as allowances amounting close to RM8 million since last March.

"I am made to understand by the Selangor Manpower Department that the owner must pay staff salary, not only for March and April but until July 11. Rayani Air was supposed to have issued a termination notice last Wednesday and notified all employees, but we have not received anything till today.

"According to the Manpower Department, workers must be given a compensation of one month's pay after the notice is issued," said Azharudin.

Azlan Syan Latang, who represents 252 customers, claimed that they incurred a loss of about RM173,162, with the highest claim by one customer amounting to RM12,000.

Meanwhile, Mohamad Siddiq said he would hold a meeting with the ticket buyers to gather all information before taking a court action on Rayani Air if their claims payment have not been settled immediately.