MYAirline Malaysia to pay RM4.3m in unpaid salaries with new investor backing

Malaysian carrier, MYAirline, has reportedly agreed to pay RM4.3 million worth of unpaid salaries to 158 of its employees now that it has secured new investors. The payments are reportedly expected to start in January.

Malaysian Trades Union Congress (MTUC) secretary general Kamarul Baharin Mansor said the agreement was reached following an order issued by the Labour Department, according to media reports. 

Mansor reportedly said that MTUC remains skeptical about MYAirline's ability to pay as promised, citing the carrier's past failures to pay employee salaries in September and October. 

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Mansor added that waiting for investors is an unacceptable course of action, and that the company still has to remunerate its employees promptly regardless of new investors. 

MYAirline has had a troubled few months since ceasing operations in early October due to financial pressures.

"We deeply regret and apologise for having to make this decision as we understand the impact it will have on our loyal passengers, dedicated employees and partners. We have worked tirelessly to explore various partnership and capital raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision," it said in a statement.

After it ceased operations, the Malaysian Aviation Commision (MAVCOM) instructed MYAirline to discontinue sales and the booking of flights, and to refund affected customers. 

In a statement from the board of directors, MYAirline said, "We deeply regret and apologise for having to make this decision as we understand the impact it will have on our loyal passengers, dedicated employees and partners. We have worked tirelessly to explore various partnership and capital raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision".

Its owner was later arrested on suspicion of financial crimes. According to The Royal Malaysia Police, the airline’s co-founder and major shareholder, along with his wife and son were arrested to assist in a money laundering probe.

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