Low-budget airline MYAirline is currently in hot water with many after they suddenly announced suspension of their operations earlier yesterday (12th October). The decision has been frustrating for customers, but everyone is also wondering what happened to the once-budding airline.
The announcement came as a shock as it was abruptly revealed yesterday. But it also caught many off guard (including the cabin crew), as prior to the reveal, there had been no hints of them suspending their operations. In fact, just hours before, they had done a promotion and announced the renewal of their license days ago!
For those not in the know, MYAirline had grand plans for the year 2023. They had only just obtained their licenses last year, and had plans to grow the number of their staff and aircrafts in anticipation of future traffic. And for a while, it certainly seemed things were going their way.
On 9th October, the airline proudly announced they had managed to obtain a 2-year extension for their Air Operator Certificate (AOC). “With this AOC extension, we hope to remain as your trusted partner for safe and reliable air travel! We’re as committed as ever to fly you the best we can and hope to see you in the skies soon,” they stated in their post.
Additionally, a day before their operations ceased, MYAirline also did a promotion selling flights to Kota Bahru from RM59, and promised 10% off with a code. However, the sudden suspension of the airline the very next day baffled many.
MYAirline later attributed the suspension of their operations to a financial crisis, as mentioned in their announcement. Reportedly, the airline has been unable to pay their employees on time for several months now and has defaulted on payments to service providers. The Edge added that this was the first time the airline had publicly acknowledged their financial situation.
According to the Companies Commission of Malaysia (SSM), the paid-up capital of MYAirline was reportedly RM2 million, and consists of 2 million RM1 shares. International trade consultant Zillion Wealth Bhd previously had an 88% equity interest, while money lending and financing company Trillion Cove Holdings Bhd held 10%. Both are notably owned by local businessman Datuk Allan Goh Hwan Hua.
As for the remaining 2% of the airline’s shares, it was reportedly held by former MYAirline CEO Rayner Teo Kheng Hock. But, in May this year, Trillion Cove was allegedly involved in a money laundering case while Datuk Allan Goh was also reportedly linked to i-Serve Online Mall Sdn Bhd, a payment gateway company which was compounded for accepting deposits without a license.
However, currently, the shareholding stakes have changed. Zillion Wealth’s share has gone down to 39.7%, while Trillion Cove has increased it stake to 25.25%. Datuk Allan Goh has a direct stake of 0.94% shares in MYAirline. On the other hand, Rayner Teo’s shareholding has gone down to 0.05%.
Rayner also announced his resignation from the company recently, citing health issue. However, prior to his resignation, MYAirline’s chief financial officer and chief commercial officer had also announced their resignation.
Transport Minister Anthony Loke has called MYAirline’s sudden grounding after pre-selling a total of up to RM20 million tickets “irresponsible”. He also claimed the company’s pre-sold tickets, which stretched to March 2024, has affected 125,000 people, leaving them searching for alternatives.
Other airlines have since been stepping up to the plate to help those who are currently scrambling to rebook flights. Customers have also expressed dissatisfaction at only being able to contact MYAirlines via email, yet the company has apologised for the abrupt notice and reassured customers regarding their refund.
MYAirline’s last statement claimed they are currently “exploring all avenues to reactivate its operations and fly the skies again”, but have not confirmed a timeline. As such, we will still have to wait and see what their future holds. Watch Transport Minister Anthony Look’s speech here:
Sources: China Press (1)(2), Tan Tan News, Twitter, The Edge, Facebook, YouTube
