MYAirline Sdn Bhd has ceased all operations until further notice due to significant financial pressures effective October 12, 2023 (Thursday).
In a statement released on its official Facebook page, the low-cost airline said it has come to this “extremely painful decision” because of financial pressures that have made it necessary to suspend operations pending the shareholder restructuring and recapitalisation of the airline.
The budget airline stopped its operations less than 11 months after it took to the skies.
According to the statement, its board of directors said, “We deeply regret and apologise for having 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 partnership and capital-raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision,” the statement also read.
Nevertheless, MYAirline noted that it would be committed to assisting those impacted through the situation and advise the affected passengers to not head to the airport and seek for alternative travel arrangements to their destinations.
“Kindly reach out to us at customercare@myairline.my, and our support team will be readily available to provide their assistance,” it said.
MYAirline also said the board, shareholders and MYAirline will work tirelessly to resume operations as quickly as possible but at this stage, the airline is unable to commit to any timeline.
“We reiterate our sincerest apologies for any difficulty and inconvenience arising from this suspension and will do our utmost to provide any updates which become available,” it added.
The cancellation of the airline’s 40 flights stranded thousands of passengers.
MYAirline made the announcement on social media, catching the government and many travelers by surprise.
The move came just days after the airline said it was in the advanced stages of finalising a strategic partnership. It was also reported that the suspension signalled those talks might have collapsed.
Malaysian Transport Minister Anthony Loke slammed the hasty shutdown, saying it was unacceptable and gave the country a bad name. He said the airline had sold 125,000 tickets worth some 20 million ringgit ($4.2 million) for flights scheduled until March 2024.
“We were caught by surprise and totally shocked,” Loke said during a news conference.
“They didn’t inform us. They just stopped operating with no airline staff at the airport. How can you just disappear like that? This is highly irresponsible.”
The government will ensure that ticket-holders are refunded, the minister said.
Loke said the airline has a fleet of eight planes and had intended to expand to 12 by the end of the year. He said it should have sought government help instead of ceasing operation without warning.
The airline, which operated flights to eight domestic destinations and Thailand’s capital, Bangkok, is owned by businessman Allan Goh Hwan Hua. Just two days ago, CEO Rayner Teo, who has a 2% stake in the carrier, stepped down, citing health reasons.
