MYAirline suspends operations on 12 October 2023 until further notice

 Report, images by : Gan Yung Chyan, KUCINTA SETIA

Image : Researcher's Picture

Malaysia's youngest airline, MYAirline, suspends operations on 12 October 2023.

MYAirline announces early this morning that it has suspended operations immediately until further notice, without mentioning any timeline for resumption of operations.

The statement of MYAirline confirms Malaysia media reports that MYAirline was "financially struggling".

The airline is believed to be unable to pay its services providers and employees' salaries on time.

MYAirline said its flights are suspended pending its shareholder restructuring and recapitalization of the airline.

According to the New Straits Times, the potential new investor, Abang Abdillah Izzarim Abang Abdul Rahman Zohari, who is son of Sarawak Premier Tan Sri Abang Johari Tun Openg, has attended several meetings and town halls with MYAirline recently but he has pulled out of the deal to buy a controlling stake "at the 11th hour".

Abang Abdillah might have emerged as the top shareholder should the purchase of MYAirline's majority shareholder Datuk Goh Hwan Hua's shares go through.

Goh holds the majority 88 per cent and 10 per cent shares, respectively through Zillion Wealth Bhd and Trillion Cove Holdings Bhd.

The financial struggles of MYAirline are made worse by the resignation of a number of MYAirline's top executives including its chief financial officer and chief commercial officer, who have quit within less than a year in operations.

MYAirline's former chief executive officer Rayner Teo resigned recently, citing health reasons.

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Despite its cash crunch, MYAirline was recently given by the Civil Aviation Authority of Malaysia a two-year Air Operator Certificate (AOC) extension to operate commercial flights until 2025. The airline has also planned to launch its second route from KLIA to Denpasar after Suvarnabhumi while it was refused the permit to land in Changi Airport due to slot constraints.

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Prior to 12 October 2023, MYAirline operates domestic flights in Malaysia and international flights to Suvarnabhumi.