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Malaysia's first sharia-compliant airline suspended: Official
Rayani Air has been suspended for three months after failing to comply with aviation regulations. PHOTO: THE STAR
Apr 11, 2016, 5:10 pm SGT
KUALA LUMPUR (AFP) - Malaysia's first Islamic-compliant airline has
been suspended for three months after it failed to adhere to aviation
regulations, a senior official said on Monday (April 11), as the
government announced a safety audit of the carrier. "Rayani Air has been suspended for three months," Azharuddin Abdul
Rahman, director-general of the Department of Civil Aviation, told AFP. "They contravened civil aviation regulations," he said, declining to elaborate.
PETALING JAYA: Suspended Rayani Air is unlikely to take to the skies again, reported business daily The Malaysian Reserve today. This is because the Shariah-compliant airline has missed a deadline to set its financials in order, the report said. Quoting industry sources, the report noted the airline has still not
found a new investor nor has it proven to the Department of Civil
Aviation (DCA) that it has a sound business structure to reclaim its
suspended Air Operating Certificate (AOC).
“The airline had racked up massive backlog of unpaid salaries,
payments to suppliers and lease payments that would be impossible to
overcome without a fresh injection of capital from a new investor,” said
the report.
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