Malaysia's Islamic airline Rayani Air barred from flying

Kuala Lumpur - Rayani Air launched last December offering only halal food, no alcohol and crew wearing modest clothing.

Rayani Air, Malaysia's first Islamic-compliant airline, has been shut down, regulators said Monday, months after it was suspended from flying for breaching aviation regulations.

The carrier launched only in December with Muslim flight crew wearing the hijab while non-Muslim members were forbidden from wearing revealing clothing. In-flight meals were completely halal and alcohol consumption banned.

It has two Boeing 737-400 planes in its fleet, each able to carry about 180 passengers, eight pilots and 50 crew.

But after an "investigation into the administration and safety audit" of the airline, the Department of Aviation (DCA) said it has revoked Rayani's Air Operator Certificate.

The DCA launched an inquiry into the airline in April following a string of criticisms from passengers and the government over delays and last-minute cancellations.

DCA director-general Azharuddin Abdul Rahman said the government took the step to cease Rayani's operation because "safety and security of the aviation industry is of paramount importance".

In the lead up to its suspension, the airline had faced criticism including complaints about cancelled flights as pilots went on strike.

The revocations came at the peak of our negotiations with investors for the acquisition of equity in Rayani Air in realization that the present owners and their management are no longer fit to revive the airline," said Ravi in a statement on Monday.

He said the "qualified and strong management team" of its new investors would revive and manage the airline "much better than us".

Mr Ravi said the revival of the airline is "vital" in resolving the impacts from its "financial illness", such as employees' salaries, ticket refunds and other liabilities.

"To this end, Rayani Air Sdn Bhd will appeal to the Mavcom (Malaysian Aviation Commission) and the DCA to give the second chance for new investor to revive and manage the airline," he said.

The decision comes two years after Malaysia faced twin aviation disasters.

Malaysia Airlines flight MH17 was shot down in July 2014 over rebel-held eastern Ukraine in a missile strike, killing all 298 people on board.

Ironically, the people who started Rayani Air are Hindus, perhaps an indication that a business opportunity knows no religious boundary. The founders of the airline, which currently flies to three domestic destinations using two Boeing 737s, are Ravi Alagendrran and his wife, Karthiyani Govindan. They used parts of their first names for the airline's name.