MYAirline’s AOC revoked days after airline suspends operations

18 October 2023

A few days after it suspended operations, MYAirline’s AOC was revoked by the Malaysian Civil Aviation Authority.

The Malaysian authorities have temporarily revoked MYAirline’s Air Operator’s Certificate (AOC) just several days after the airline suspended its operations.

The carrier, which began flights in December 2022, hoped to capture the post-COVID-19 travel boom and compete against other incumbent players within the Malaysian airline market.

According to an announcement by the Civil Aviation Authority of Malaysia (CAAM), it made the decision based on the country’s Civil Aviation Regulations, as it will investigate MYAirline suspending services abruptly.

The CAAM noted that the airline stopped operating flights without prior notification to the authority.

Passing an audit

The regulator pointed out that it conducted an audit on the now-grounded airline between May 29 and June 2023, as MYAirline aimed to renew its AOC. Then, the CAAM found no signs that the carrier was in “financial distress”. The regulator noted that,

“As part of the safety audit, AOC holders must also provide evidence indicating financial solvency to CAAM.”

The regulator noted that this must be done to “ensure the air operator has the financial resources to conduct its planned operations”.

If an airline starts experiencing solvency issues, it should immediately notify the CAAM, as the regulator aims to ensure that safe operations continue despite any financial distress. “To date, MYAirline has not submitted such notification to CAAM,” the authority’s announcement continued.

In addition, the sudden suspension of operations “raises serious concern on public safety and the overall integrity of civil aviation operations in Malaysia”, which is why the CAAM will carry out a detailed safety audit at MYAirline during the temporary suspension of its AOC, read the release, which was issued on October 16, 2023.

Acknowledging its issues

In response to the CAAM’s announcement, the airline acknowledged its communication-related shortcomings, noting that a last-minute withdrawal by an investor left the airline in a difficult situation. This was exacerbated because MYAirline had no contingency plan, as admitted by Dato’ Sri Azharuddin A. Rahman, the carrier’s Interim Accountable Executive.

“We acknowledge and understand the frustration experienced by our passengers.”

The airline’s statement also stressed that it suspended operations abruptly due to “a genuine concern for the safety of our passengers and employees on a flight that operated from Wednesday night to early Thursday morning”. Rahman explained that although it had issued the notice to warn passengers that it had suspended operations at 5:30 am local time (UTC +8) on Thursday, October 12, some passengers were already at the airport, which was “an oversight on our part”.

Flightradar24 data showed several flights departed on late October 11 and landed the night of October 12. One of the airline’s Airbus A320 aircraft registered as 9M-DAC operated one flight that landed on the night of the 12th and then operated a subsequent flight to Kuala Lumpur International Airport (KUL).

9M-DAD also flew from KUL to Kota Kinabalu International Airport (BKI) – with a significant departure delay – but returned to the capital of Malaysia on its next flight.

The same could be said about 9M-DAE and 9M-DAJ, with both aircraft returning to KUL from Bangkok Suvarnabhumi Airport (BKK), Thailand.

However, three aircraft, registered as 9M-DAB, 9M-DAF, and 9M-DAG, have not flown since October 9.

Hopeful for a restart

Still, MYAirline is hopeful of restarting operations.

The carrier has initiated a Service Recovery Plan and Business Continuity Plan, led by Rahman alongside relevant department heads, and hopes to retain its aircraft and find an investor.

“MYAirline is actively exploring strategic partnerships, having received several proposals.”

The carrier noted that the proposals are currently being examined in detail, ensuring due diligence.

MYAirline is also in active discussion with its lessors to retain its fleet of eight Airbus A320s, with the carrier promising to “provide timely updates to our staff and media as developments unfold”.

The company added that none of its employees were placed on unpaid leave or terminated.

MYAirline began flights in December 2022, having received its AOC in November 2022.

The Malaysian airline had a fleet of nine Airbus A320 aircraft, with one being inactive, according to ch-aviation data. All aircraft were used, with several former operators, including AirAsia, easyJet, Frontier Airlines, and even Alaska Airlines being listed.

All nine are either owned or managed by aircraft leasing companies.

Source: simpleflying.com

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