Malaysia suspending troubled budget carrier MYAirline’s licence and air operator’s certificate
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MYAirline, which flew its first flight in December 2022, suddenly suspended its operations last week.
PHOTO: THE STAR/ASIA NEWS NETWORK
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KUALA LUMPUR – Malaysia is suspending the licence and air operator’s certificate (AOC) of MYAirline, after the low-cost carrier’s financial woes left passengers stranded at an airport.
The airline drew flak when it suddenly announced on Oct 12 that it was halting its operations with immediate effect due to “significant financial pressures”, leaving dozens of its passengers waiting
“The company still exists; it is suspending operations while looking for investors. It’s a commercial issue but... we will be suspending their licence temporarily,” Transport Minister Anthony Loke told reporters after an event at the Malaysia International Trade and Exhibition Centre on Monday.
The airline’s air service licence from the Malaysian Aviation Commission is due to expire on Nov 14.
The Civil Aviation Authority of Malaysia (CAAM) recently extended MYAirline’s AOC, which had expired on Sept 30, allowing it to operate scheduled commercial flights for two more years.
But CAAM chief executive Norazman Mahmud said the AOC has been suspended, effective from Monday.
He added that a safety audit had been carried out on MYAirline from May 29 to June 1 for its AOC renewal, but there were no findings that indicated financial distress.
“A detailed safety audit will be carried out on MYAirline during this suspension to reassess the airline’s capability,” said Datuk Norazman.
Mr Loke said that MYAirline, which flew its first flight in December 2022, has been reminded that it still bears a responsibility towards affected passengers and staff.
“What is most important right now is... to ensure that the rights of consumers are defended, and they have the right to refunds,” he said.
MYAirline’s interim accountable executive Azharuddin Rahman said on Monday that the company and its staff were “let down” by previous investors without prior notice.
Datuk Seri Azharuddin revealed that MYAirline did not have a contingency plan before the investors pulled out, and added that the company cannot commit to a timeline on when it can resume operations.
“God willing, we will issue all refunds and pay our employees’ salaries (in 2023),” he said, adding that there were 125,000 affected customers, and RM22 million (S$6.4 million) worth of tickets had been purchased. THE STAR/ASIA NEWS NETWORK
