Engineering Management Case Studies

Rayani Air made history as Malaysia's first Shariah-compliant airline when it launched its maiden flight on December 20, 2015. The airline operated with Islamic values, offering services that included Halal meals and prayer times, and promoting itself as a unique option in the Malaysian aviation industry. However, Rayani Air's operations were short-lived and riddled with mismanagement issues that led to its ultimate demise. After a series of flight cancellations to key domestic locations, including Langkawi, Kota Kinabalu, and Kuching, the airline faced intense scrutiny. In April 2016, the Malaysian Aviation Commission (MAVCOM) revoked Rayani Air’s Air Service License (ASL) and Air Service Permit (ASP), citing financial mismanagement and operational incompetence. The airline was unable to refund passengers for cancelled flights and was left in disarray following the withdrawal of investors. Moreover, Rayani Air failed to pay its staff, leading to strikes by its pilots and contr...