Rayani Air, Malaysia’s first Islamic-compliant airline, is reported to have been barred from flying for breaching aviation regulations.
The country’s Department of Civil Aviation (DCA) said it was revoking the airline’s certification because of concerns over its safety audit and administration.
Rayani Air launched last December offering only halal food, no alcohol and crew wearing modest clothing.
It has two Boeing 737-400s in its fleet, each with capacity for about 180 passengers.
The DCA said on Monday that Rayani Air could no longer operate as a commercial airline.
It follows a three-month suspension after the airline failed to follow flight regulations. A safety audit was later conducted to assess its operations, the BBC reported.
Malaysia’s aviation commission said that the airline “had breached the conditions of its Air Service Licence (ASL) and lacks the financial and management capacity to continue operating as a commercial airline”.
The DCA said it had conducted a “thorough deliberation” on the airline’s response to the safety audit.
The carrier had faced criticism including complaints about cancelled flights as pilots went on strike.
Based on the island of Langkawi, Rayani Air had been flying to the capital, Kuala Lumpur, and the northern city of Kota Bahru.
It had planned to serve more Malaysian cities and eventually fly to Mecca for the Hajj and Umrah pilgrimages, reports said.