MYAirline, the Malaysian low-cost carrier, has announced the suspension of its services, barely a year after its launch in November of the previous year. This decision follows a tumultuous week marked by financial uncertainty and a series of top-level resignations, including CEO Rayner Teo, who stepped down citing health reasons.
Rayner Teo had been at the helm since MYAirline’s inception in November 2020. His interim replacement is Chief Operating Officer Stuart Cross.
In an official statement, MYAirline attributed the suspension to “significant financial pressures” and the need for a restructuring and recapitalization, which was hampered by a last-minute withdrawal of an anticipated investor.
The airline’s board of directors expressed remorse and extended apologies for the challenging decision, acknowledging the impact on passengers, employees, and partners. They emphasized that extensive efforts had been made to explore partnerships and raise capital to avert this situation. Regrettably, time constraints left them with no choice but to suspend operations.
Goh Hwan Hua, a Malaysian entrepreneur, is the major shareholder of MYAirline through two private entities, Zillion Wealth and Trillion Cove Holdings, with ownership stakes of 88% and 10% respectively. Teo retains the remaining 2%.
Malaysian Transport Minister Anthony Loke encouraged the airline to engage with the Ministry of Transport via the Malaysian Aviation Commission (MAVCOM) to present their challenges. Authorities are willing to offer support in terms of facilitation, licensing, and regulatory assistance.
MAVCOM, in a statement, instructed MYAirline to prioritize affected consumers and mandated the airline to refund passengers who had purchased tickets but now face disrupted travel plans. Furthermore, the commission disclosed an ongoing investigation into MYAirline, focusing on internal reviews and complaints, including allegations of unpaid statutory payments to employees.
Notably, in July, Rayner Teo, the former CEO, had revealed ambitious plans for MYAirline to become a major regional player within the next three years. The airline had initiated international flights to Bangkok in late June.