In a report by Malaysiakini, Ismail said more and more companies were applying to set up their own airlines since the implementation of Malaysia’s “Open Skies” policy since last year.

Not all would have the resources to do so or appreciate the complexities involved, he said.

Ismail pointed out that some 200 Rayani Air workers were asked to stop work and salaries at new airlines were also much lower compared with their former jobs, with few benefits and allowances.

He suggested that new airlines be made to set up a retrenchment fund for their employees, prior to being issued the Air Operator’s Certificate (AOC).

“The company must have a retrenchment fund in case they gulung tikar (fold). Then you all get paid,” Ismail said.

“If you don’t have enough funds, can you really run an airline? If you don’t have enough experience, can you really run an airline?”