In order to allow for investigations and to address complaints made against Fly540, the Competition Authority of Kenya (CAK) has temporarily halted the company's operations.
These include erroneous and deceptive information on the airline's ability to offer air transportation services and the potential for changing flight schedules.
In the order dated November 15, the authority has ordered the airline to refund all moneys received from consumers it has sold tickets to from September 30 this year to date.
It is also required to refund all moneys received from consumers who had purchased their tickets before September 30 and their flights arbitrary cancelled.
Fly540 is also accused of cancelling flights on short notices seemingly at random or by chance or as an unreasonable act of will.
“The airline has also been noted to be delaying in processing and issuing out refunds to its customers,” CAK’s letter reads in part.
Its on these grounds that the regulator issue the "cease and desist' order barring Fly540 from offering any services to customers to and from any of the airports within the country until the investigations are completed.
The authority had earlier issued the airline with a warning in July this year, where it required the firm to address concerns of false and misleading representations.
To add on the troubles facing the low-cost airline, CAK notes that the company’s Air Operator Certificate (AOC) expired on September 30 this year, another reason they should not be in operation.
Fly 540 must within seven days of receipt of the order furnish the Authority with evidence of compliance with the set conditions.
No flights were scheduled on Fly540's online booking platform on Wednesday.
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