The Malaysian Aviation Commission (Mavcom) today revoked Rayani Air’s Air Service Licence (ASL).

In a statement today, the commission found that Rayani Air had breached the conditions of its ASL and lacked the financial and management capacity to continue operating as a commercial airline.

“As a consequence, Rayani Air can no longer operate as a commercial airline with effect from today,” the commission said in the statement.

Mavcom issued a show-cause letter to Rayani Air on May 25 after evaluating the airline’s commercial standing and capabilities to determine its ability to continue as an ASL holder.

In the show-cause letter, the commission required the airline to submit its representation in writing within 14 days before it decided whether Rayani Air should be allowed to continue to hold the ASL or whether it should be revoked, or suspended.

“Rayani Air submitted its representation in writing to Mavcom on the last day of the stipulated time.

“After reviewing Rayani Air’s written representation, Mavcom has decided to revoke the ASL as the representations made by Rayani Air are not satisfactory responses to the show-cause letter dated May 25,” it said.

The commission said customers can seek a refund from Rayani Air.

“Customers who have purchased tickets with Rayani Air but were not able to go on their journey may lodge a complaint with the company and seek a refund.

"In the event consumers are not able to obtain their refunds, consumers can file a civil suit for those refunds.

“Alternatively, affected consumers may lodge a formal complaint with the commission, who can hear and determine the complaint, with a view of protecting legitimate consumer interests.

“The commission may apply for its decision to be registered as a judgment of the Malaysian High Court,” it added further.

The commission’s executive chairperson, Abdullah Ahmad, said this episode served as a reminder that operating a scheduled commercial airline was challenging and required great planning, financial depth, operational know-how and execution capability.

“This is especially so considering the highly competitive environment under which today’s airlines operate.

“Strong commercial foundations and depth are therefore necessary prerequisites to be a player in this industry. The commission shall strive to ensure only enterprises that are equipped and ready will be allowed to participate,” said Abdullah.

It was previously reported that the Department of Civil Aviation (DCA) had suspended the five-month old airline for three months following a pilot strike that grounded its operations.