MYAirline has paused operations indefinitely, citing financial constraints

12 October 2023

Malaysia’s low-cost carrier, MYAirline, has paused operations indefinitely, citing financial constraints. The airline started operating less than a year ago, in December 2022.

MYAirline has paused operations indefinitely, citing financial constraints
MYAirline has paused operations indefinitely, citing financial constraints

While the airline’s financial woes were reported in recent days, the flight suspension was quite abrupt. Several of the airline’s passengers remain stranded, and the Malaysian Aviation Commission (MAVCOM) is monitoring the development.

Cash crunch forces flight suspension

MYAirline, a Malaysian low-cost carrier that started operations in December last year, has suspended all flights indefinitely due to poor finances. The airline has stated that it came to this difficult decision due to “significant financial pressures.”

MyAirline started operating less than a year ago, in December 2022.
MyAirline started operating less than a year ago, in December 2022.

The sudden pause in MYAirline’s operations comes amid shareholder restructuring and recapitalization of the carrier. It also follows the news of its CEO Rayner Teo stepping down from his position recently due to health reasons. MYAirline’s board of directors issued a statement that said,

“We understand the impact it will have on our loyal passengers, dedicated employees and partners. We have worked tirelessly to explore various partnership and capital-raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision.

“… MYAirline unequivocally admits its responsibility for this fiasco which was caused by our abrupt notice. Our Board of Directors and the entire MYAirline team humbly apologizes to all our passengers, Ministry of Transport Malaysia, Malaysia Airports Holdings Berhad, Airports of Thailand, Malaysian Aviation Commission (MAVCOM), Civil Aviation Authority of Malaysia (CAAM), Civil Aviation Authority of Thailand (CAAT) and all affected parties for this turn of events …”

MYAirline’s majority shareholder is Malaysian entrepreneur Goh Hwan Hua, commanding 88% and 10% shares through two private entities, Zillion Wealth and Trillion Cove Holdings. The remaining 2% of the airline is with Teo.

Passengers stranded

Dozens of passengers booked on MYAirline’s flights now find themselves stranded and looking for alternatives.

Many travelers were shocked to find closed service counters when they came to the airports to check in for their flights across various locations, including Kuala Lumpur and Bangkok.

Images circulating on social media show MYAirline’s passengers trying to figure out their next step after receiving the news. Many only came to know about the suspension after they reached the airport. \

Meanwhile, Batik Air Malaysia has stepped in to offer support to affected MYAirline passengers by offering special fixed fares.

The Malaysian Aviation Commission (MAVCOM) is closely monitoring the situation and investigating the carrier. It has instructed MYAirline to follow procedures and refund passengers who have already booked tickets. It also released a statement that said,

“The Commission is currently investigating the airline based on internal reviews and complaints received regarding the airline’s unpaid statutory payments to its employees, amongst others.”

MYAirline began flying less than a year ago

Things have gone south pretty quickly for MYAirline. The airline was founded in 2021, aiming to become the newest low-cost carrier for Malaysia and wider Southeast Asia.

But it took another year and a half to start flying commercially in December 2022, with inaugural services to Kota Kinabalu, Kuching, and Langkawi in Malaysia.

MYAirline did make some progress over the last few months, including celebrating the milestone of flying over one million passengers earlier this year. The carrier, which currently has eight Airbus A320 aircraft in its fleet, also expanded operations internationally with flights to Bangkok in June.

However, things were clearly not favorable for MYAirline as far as finances were concerned, forcing it to shut up shop temporarily, as revealed on its website. It remains to be seen how this story unfolds in the coming days.

Related news

Source: simpleflying.com

Site Search

Did you find what you are looking for? Try out the enhanced Google Search: