Responding to the issue for the first time, the charter airline company said it had paid salaries on time and did not lay off any staff at the height of the Covid-19 pandemic.

“Post pandemic, we are diligently stabilising our business and finances,” the company said in a statement.

SAS also said it was in close touch with the relevant authorities and urged the public to respect the “sensitivity and confidentiality of the matters addressed in the news articles”.

“As for employees or former staff, we encourage you to reach out to the company to address any matters pending.”

SAS has a long history as a maintenance, repair and overhaul (MRO) provider.

Last week, the Malaysian Aviation Commission (Mavcom) said it was waiting for SAS to resubmit its application for the air services permit.

On Saturday, FMT reported that the permit was not renewed by Mavcom as SAS was bogged down with problems related to unpaid staff salaries and non-settlement of EPF and tax deductions “running into millions of ringgit”.

The company’s air services permit, which allows it to transport people and cargo, lapsed on Feb 29.

CAAM, which suspended the company’s air operations certificate (AOC) on March 12, said the company must renew its air services permit by Wednesday or risk it being revoked. Its AOC was first issued in 2021.

It would take at least three months to obtain a fresh AOC. A CAAM official told FMT that SAS’s AOC had yet to be reinstated at the time of writing.