Malaysia’s low-cost airline MYAirline announced that it had suspended its operations from Thursday for financial reasonsless than a year after starting its service in November last year.
This decision comes after a week of speculation about its financial situation and an wave of resignations management, including that of the CEO Rayner Teo, who resigned on Monday for health reasons. Teo has held the role since the low-cost carrier’s inception in November 2020. He was replaced on an interim basis by chief operating officer Stuart Cross.
In a press release, MYAirline said the decision to suspend the service was due to “significant financial pressures” pending the restructuring of shareholders and the recapitalization of the airline. “We deeply regret and apologize for having had to make this decision as we understand the impact it will have on our loyal passengers, dedicated employees and partners. We have worked tirelessly to explore various partnerships and capital raising options to avoid this suspension. Unfortunately, time constraints left us with no choice but to make this decision. » Malaysian entrepreneur Goh Hwan Hua is the largest shareholder of MYAirline through two private entities, Zillion Wealth and Trillion Cove Holdings, which hold 88% and 10% of the shares respectively. Teo owns the remaining 2%.
THE Malaysian Minister of TransportAnthony Loke, told reporters on Wednesday that the airline should contact the Ministry of Transport through the Malaysian Aviation Commission (MAVCOM) to present all the problems it is facing, and that the authorities “will try to facilitate and give them a little leeway”. At the same time, MAVCOM said in a statement that it had asked MYAirline to take care of affected consumers and that the airline should refund passengers who purchased tickets but are no longer able to fly. “The Commission is currently investigating the airline based on internal reviews and complaints received regarding, among other things, the airline’s unpaid statutory payments to its employees”he indicated.
In July, Teo, the former CEO, told Nikkei in an interview that the airline planned an ambitious goal to grow as a major regional player over the next three years. The airline, born less than a year ago, launched international flights to Bangkok end of June.
