Malaysia Slaps Banning on Rayani Air Due To Violation of Regulatory Conditions

Rayani Air Sdn. Bhd., the first Islamic Sharia compliant airline in Malaysia has been grounded permanently. Department of Civil Aviation (DCA) in Malaysia has revoked the carrier’s Air Operator Certificate (AOC) due to concern over safety audit and administration.

The full service airline in Malaysia has initiated commercial operation in December last year. It has also been acknowledged as the fourth Sharia compliant airline in the world after Royal Brunei Airlines (RBA), Saudi Arabian Airlines and Iran Air.

Following Islamic dietary regulations, no alcoholic beverage or pork has been served on board. Furthermore, prayers have been recited prior to initiation of every flight.  

Two Boeing 737-400 planes with capacity of carrying 180 passengers have been used in the Rayani fleet. Eight pilots and 50 crews have been engaged to conduct the flight operations, reports BBC.

The DCA and Ministry of Transport in Malaysia have been working in collaboration with Malaysian Aviation Commission (MAVCOM) over the Rayani issue. DCA has informed through a statement that safety and security of the aviation industry is of paramount importance to them.  

Prior to imposing suspension, the DCA has cautioned the airline twice over its non-compliance and poor service levels. Despite serving multiple notifications, Rayani Air has failed to implement the AOC conditions, informs Azharuddin Abdul Rahman, director-general of the DCA.   

Rayani Air has violated conditions of Air Service License (ASL), alleges MAVCOM through a separate statement. The airline is also accused of lacking financial and management capacity to continue operations as a commercial airline, according to a report published in The Telegraph.

MAVCOM has issued a show cause notice to the airline on May 25. Rayani Air’s unsatisfactory response coupled with negative evaluation report on its commercial standing and capabilities, all have contributed in imposing the ban.

Earlier, DCA has decided revoking the AOC on May 12 following an inquiry. The authority has conducted an investigation into the administration and safety audit of the airline's state of operations.

However, the airline has decided appealing to both MAVCOM and the DCA to provide a second chance to revive its operations. The revocation appears amid airline’s negotiating efforts to acquire equity from investors, Rayani Air owner Ravi Alegandrran reveals his point of argument for the appeal, reports Financial Times.

A qualified and capable management team on behalf of the new investors will take the helm of Rayani Air after revival of the airline’s operations following the planned appeal, adds Mr. Ravi to his statement. He however, stresses the requirement of revival to resolve issues like employees’ salaries, ticket refunds and meeting other liabilities.

Passengers, who have purchased tickets from Rayani Air prior to announcing the ban, will be able to lodge complaint with the carrier seeking refund. They may even file civil lawsuit or lodge complaint with MAVCOM too.

The commission reserves the right to hear and try against complaints with a view to protect legitimate consumers. However, it has also been considering seeking High Court directive to register the banning as a judgment.