Malaysia to see entry of new ultra low-cost carrier MYAirline

[flee 5]

MAVCOM needs to seriously review future AOC applications - MyArilines has done more harm than good to the Malaysian aviation industry. Irrational competition is bad for the industry as a whole while healthy, sustainable competition is the way to go.

[jahur 0]

MYAirline just ‘disappeared’, says Loke

KUALA LUMPUR: Transport minister Loke Siew Fook has criticised MYAirline’s decision to suspend its operations earlier today, calling the low-cost carrier’s actions “irresponsible” and “unacceptable”.

He said the transport ministry and Malaysian Aviation Commission (Mavcom) were caught by surprise with the “abrupt” decision as they were not given any prior notice.

Loke said the suspension has affected 125,000 MYAirline passengers who had already purchased RM20 million worth of tickets until March 2024.

“Their decision to suspend operations is unacceptable and shocking to all of us,” Loke said at a press conference in Parliament.

“MYAirline just disappeared. They stopped their operations, and not only were their planes not flying, but their staff were also nowhere to be found at the airport.

“There were no representatives at all (at the airport). (This is) irresponsible behaviour.”

Earlier today, MYAirline said it had to suspend its operations immediately because of significant financial pressures.

Calling the decision “extremely painful”, it added that it had no timeline on resuming operations – which was dependent on shareholder restructuring and recapitalisation of the airline.

MORE TO COME

[BC Tam 2]

26 minutes ago, jahur said:

MYAirline just ‘disappeared’, says Loke

“Their decision to suspend operations is unacceptable and shocking to all of us,” Loke said at a press conference in Parliament

What ? In same manner as the Israelis were 'shocked' few days ago ? 🙄

 

[flee 5]

 

[Izanee 0]

Why give AOC then? The competition for low cost low yield routes is crazy. MH, AK and OD are killing each other and all are competing on mostly the same routes. 
 

just leave it like this … 

[Chris Tan 0]

9 hours ago, flee said:

MAVCOM needs to seriously review future AOC applications - MyArilines has done more harm than good to the Malaysian aviation industry. Irrational competition is bad for the industry as a whole while healthy, sustainable competition is the way to go.

 

14 minutes ago, Izanee said:

Why give AOC then? The competition for low cost low yield routes is crazy. MH, AK and OD are killing each other and all are competing on mostly the same routes. 
 

just leave it like this … 

If they denied the AOC, they’d be accused of protectionism by the general public who clamour for cheaper fares. It’s just impossible to please everyone. 

[jahur 0]

5 hours ago, Chris Tan said:

 

If they denied the AOC, they’d be accused of protectionism by the general public who clamour for cheaper fares. It’s just impossible to please everyone. 

Had an argument about this with a school friend a while back about reliability and quality. It seems for him guaranteed cheap ticket outweighs all issues cause to him flying should be affordable even to the hardcore poor.

Its the same reason Ryanair ceo says he does not mind putting out standing seats in planes and removing toilets to pull down prices. 

Manufacturers designing an ass to face seat config which currently is on trial and waiting regulatory approval(hopefully this gets thrown out).

Some even flag the idea of forced induced sleep/coma if there's a chance ticket price can be lowered. 

World Gov's pushing the idea of seat flooding and unchecked competition but when s#1t unfolds majority would go into hiding. The Thomas Cook and Monarch issue while almost everyone has been sorted(getting to their destination/refund from other chartered airlines on behalf of the UK gov), people still missed their appointments, holiday trips.

 

[KK Lee 5]

53 minutes ago, jahur said:

Had an argument about this with a school friend a while back about reliability and quality. It seems for him guaranteed cheap ticket outweighs all issues cause to him flying should be affordable even to the hardcore poor.

Its the same reason Ryanair ceo says he does not mind putting out standing seats in planes and removing toilets to pull down prices. 

Manufacturers designing an ass to face seat config which currently is on trial and waiting regulatory approval(hopefully this gets thrown out).

Some even flag the idea of forced induced sleep/coma if there's a chance ticket price can be lowered. 

World Gov's pushing the idea of seat flooding and unchecked competition but when s#1t unfolds majority would go into hiding. The Thomas Cook and Monarch issue while almost everyone has been sorted(getting to their destination/refund from other chartered airlines on behalf of the UK gov), people still missed their appointments, holiday trips.

 

Due to low disposable income, most people in this country choose price over quality except luxury or show off items.

[JuliusWong 0]

The greatest issue in Malaysia aviation is tackling Malaysian's mindset of "cheap, cheap fare". Cheap fare doesn't do the industry any good when most of their operational cost is in USD. It is simply not sustainable. Yes, cheap fare may work in the US or the EU when their population at large have more purchasing power than Malaysians and they have much bigger population than Malaysia, collectively. The US has 330 million in population, Malaysia has only 33 million. Taking out babies/ children, foreign workers and illegal migrants, the local customer base will shrink further. If ASEAN can come up with something similar to Schengen area under the EU, the rules of the games will be redrawn. However, given the recent human trafficking cases, economy imbalance between all ten countries and every nation has their own political and economic ambitions, I highly doubt we will see such arrangement in our lifetime. Some may say we can patch up the number with foreign tourists number, if this is the case then Thailand (which has double our population number and receives 40 million tourist annually during pre-covid era) wouldn't have a long list of failed airlines. 

I would think CAAM/ MAVCOM/ MOT can come up with bigger amount of market capitalization, with thorough background check of shareholders and greater amount of deposit/ incremental deposit as the airlines grows their operation to serve as a deterrent/ as a safeguard for consumers. 

The most funniest thing is MOT had their Majlis Konsultasi Penerbangan Negara (National Aviation Consultative Council - NACC) on October 11, 2023, a day before MYAirlines's collapse. All airline industry players big shots were present, AirAsia represented by Riad Asmat, CEO of AirAsia Malaysia, Batik Air by Captain Mushafiz bin Mustafa Bakri, accompanied by Chandran Rama Muthy (ex-CEO now Lion Air Group Strategy, Ahmad Luqman Mohd Azmi for Malaysia Airlines (CEO of Airlines), MYAirlines was there too but not sure who since Rayner resigned few days before. All of them were sitting beside CAAM which was represented by Captain Md Jani Bin Md Dom, Deputy CEO (Regulators).

Edited October 13, 2023 by JuliusWong

[flee 5]

1 hour ago, jahur said:

Had an argument about this with a school friend a while back about reliability and quality. It seems for him guaranteed cheap ticket outweighs all issues cause to him flying should be affordable even to the hardcore poor.

I think this is only valid if the government has failed to provide basic infrastructure - like in the interiors of East Malaysia. MASWings was established to provide that. MAVCOM is tasked with regulating the aviation industry - that means it must look after the interests of everyone, from the suppliers to the consumers.

Airlines collapsing soon after starting operations show that something is fundamentally wrong with their business model. MAVCOM have to study the business models of airlines in their AOC approval process. They also need to study the management structure and competence. I would have thought that after the Rayani Air debacle, they would have learnt a thing or two. However, it looks like that was wishful thinking!

[JuliusWong 0]

Well, MYAirines's AOC was issued on October 1, 2022. Datuk Seri Hj. Saripuddin Hj. Kasim is the current MAVCOM’s Executive Chairman since 4 May 2020. He was previously appointed as Commissioner of MAVCOM on 1 March 2016, during which Rayani Air collapsed. Not sure how much power he holds, I would guess those reporting to him could have done all the due diligence before approving and issuing the AOC. As to how much lobbying happened behind the scene by Datuk Goh and his affiliates with MOT, we would never know.

As for Rayani Air, their air service license (ASL) and air operator's certificate (AOC) was issued by Department of Civil Aviation (DCA) on December 15, 2015. The DG at that time was Datuk Seri Azharuddin Abdul Rahman, a current board member of MYAirlines. Surprise! Hahaha! Rayani collapsed on April 9, 2016.

MAVCOM was set up in March 1, 2016.

[JuliusWong 0]

MYAIRLINE SUSPENDS OPERATION FROM 12OCT23
NW23

https://www.aeroroutes.com/eng/231012-z9oct23

Published at 1800GMT 12OCT23

Malaysian carrier MYAirline today (12OCT23) announced the suspension of its operation, although the airline stressed the move is temporarily. Prior to the suspending its operation, the airline this month discontinues service to Miri and Sibu, while selected routes to see frequency reductions at the launch of Northern winter 2023/24 season.

The following was the airline’s planned operation for Northern winter 2023/24 season from 29OCT23.

Kota Kinabalu – Tawau 7 weekly
Kuala Lumpur – Bangkok Don Mueang 7 weekly
Kuala Lumpur – Bangkok Suvarnabhumi Last flight 28OCT23
Kuala Lumpur – Kota Bharu 14 weekly
Kuala Lumpur – Kota Kinabalu 19 weekly
Kuala Lumpur –Kuching 19 weekly
Kuala Lumpur – Langkawi 12 weekly
Kuala Lumpur – Miri Last flight 09OCT23
Kuala Lumpur – Penang 7 weekly
Kuala Lumpur – Sibu Last flight 02OCT23
Kuala Lumpur – Tawau 14 weekly

Previously reported on AeroRoutes, OAG is listing MYAirline’s schedule on Kuala Lumpur – Denpasar route between 26OCT23 and 28OCT23.

Edited October 13, 2023 by JuliusWong

[BC Tam 2]

11 hours ago, Chris Tan said:

 

If they denied the AOC, they’d be accused of protectionism by the general public who clamour for cheaper fares. It’s just impossible to please everyone. 

Another angle - even if there was sufficient intelligence known to suggest the airline was close to collapse, denying them the AOC would have landed blame of the 'stranded paxs' squarely on MAVCOM's lap

As it is now, MAVCOM can play the role of one who is assisting to resolve paxs' grudges against the collapsed airline

So, ...... 😏

[JuliusWong 0]

13 minutes ago, BC Tam said:

Another angle - even if there was sufficient intelligence known to suggest the airline was close to collapse, denying them the AOC would have landed blame of the 'stranded paxs' squarely on MAVCOM's lap

As it is now, MAVCOM can play the role of one who is assisting to resolve paxs' grudges against the collapsed airline

So, ...... 😏

Right at the get-go, they should not have been given the AOC since Datuk Goh has a dubious background. I wonder how did they passed the CTOS or CCRIS check? Also, Bank Negara and Securities Commission checks. They have about 800 employees now, some of the pilots actually quit Qatar Airways to return to Malaysia to be closer with their families. MYAirlines offers 35% more (at minimum) more salary than AirAsia. What a sad turn of event.

[Alif A. F. 0]

Pity, had a flight once with Z9. Could have been a tough competitor to AK. Was interested for further flights with the airline. The fare may be cheaper than the competition but the schedule and frequency on offer wasnt just right for me...so settle for AK.

 

[BC Tam 2]

4 hours ago, JuliusWong said:

... some of the pilots actually quit Qatar Airways to return to Malaysia to be closer with their families. MYAirlines offers 35% more (at minimum) more salary than AirAsia. What a sad turn of event.

Apologies in advance if I'm 'politically incorrect' here, but I am of opinion those personnel who switched jobs for whatever reason - be it personal preference, financial advantage, career advancement ... etc - should have weighed in potential risk(s) of getting onboard an unproven outfit into their job switching decision

Yes it's unfortunate sadly, but it's daily fare in the employment scene 🙁

[JuliusWong 0]

4 hours ago, BC Tam said:

Apologies in advance if I'm 'politically incorrect' here, but I am of opinion those personnel who switched jobs for whatever reason - be it personal preference, financial advantage, career advancement ... etc - should have weighed in potential risk(s) of getting onboard an unproven outfit into their job switching decision

Yes it's unfortunate sadly, but it's daily fare in the employment scene 🙁

Yea, I get what you mean. However sometimes when one has worked overseas for some period of time, one will start missing home especially when one's family is not with him/her. For this case, it was either AirAsia or MYAirlines. AirAsia has spoiled the pilot market with the nick and dime, they even need to buy their own uniform and tie etc. LOL. MYAirlines new kid on the block, fresh out of pandemic with fresh management team etc. Yea, daily fare in the employment scene.

However pilot is now in demand everywhere. No short of jobs for them, but need to move with family though if they are married. More than 10,000 A320neo family and B737 max family will enter service in the next decade. Plenty of job opportunity. The world is their oyster.

[Pall 0]

8 hours ago, JuliusWong said:

Yea, I get what you mean. However sometimes when one has worked overseas for some period of time, one will start missing home especially when one's family is not with him/her. For this case, it was either AirAsia or MYAirlines. AirAsia has spoiled the pilot market with the nick and dime, they even need to buy their own uniform and tie etc. LOL. MYAirlines new kid on the block, fresh out of pandemic with fresh management team etc. Yea, daily fare in the employment scene.

However pilot is now in demand everywhere. No short of jobs for them, but need to move with family though if they are married. More than 10,000 A320neo family and B737 max family will enter service in the next decade. Plenty of job opportunity. The world is their oyster.

This is not true, just checked with a friend there. Uniforms are provided by company, and of a very good quality.

[jahur 0]

Socso to aid MYAirline staff as some claim not paid since August

PETALING JAYA: The Social Security Organisation (Socso) will come to the aid of more than 500 MYAirline staff who have been affected by the abrupt suspension of the carrier’s operations, says human resources minister V Sivakumar.

This comes amid claims by some MYAirline employees that they have yet to be paid their September wages and that employer contributions to Socso and EPF have not been made since May.

 

Pretty much what i'm seeing is the wage for July got delayed, August and September were never paid. Then EPF and Soco contributions not paid since may.

[jahur 0]

MYAirline's interim CEO resigns, lessors ask for return of aircraft

KUALA LUMPUR: MYAirline Sdn Bhd's interim chief executive officer Stuart Cross has resigned, while the airline is expected to return the nine Airbus A320s that make up the airline's fleet, deepening the troubled airline's woes.

Currently, the airline is being run by its interim accountable executive Datuk Seri Azharuddin Abdul Rahman.

He said in a statement on Saturday that all MYAirline personnel were still under full employment and no one had been placed on unpaid leave.

Sources said eight aircraft lessors have asked MYAirline to hand back the Airbus  A320s since it ceased flight operations on Thursday (Oct 12).

The lessors are Aviation Capital Group LLC, AerCap Holdings NV, Aircastle Ltd, Avolon, Carlyle Aviation Partners, Genesis, Mizuho and SMBC Aviation Capital.

All but one of the lessors had leased one Airbus A320 each to MYAirline. Aircastle leased two to MYAirline.

MYAirline's ASL ends on Nov 14, and it was recently awarded a two-year extension of its AOC.

"They should have applied for the ASL renewal at least three months ago," an insider told Business Times.

According to Mavcom, the renewal includes a written application along with required documents and the application shall be made at least 90 days before the date of expiry of the existing licence.

"Every holder of an ASL is required to provide regular financial and operational reports to Mavcom as part of their licence's conditions," Mavcom stated in its website.

If MYAirline had applied for a renewal of its ASL, it would have to submit its financial report to Mavcom as part of the requirement. "Possibly MYAirline didn't apply for the ASL renewal since no one is aware of its financial situation and shocked over the suspension of operations," the insider said.

[JuliusWong 0]

Audit on MYAirline did not indicate financial distress, says CAAM

https://www.freemalaysiatoday.com/category/nation/2023/10/16/no-findings-to-indicate-financial-distress-in-myairline-during-audit-says-caam/

The aviation regulator says it has suspended the carrier’s air operator certificate for 90 days pending further investigations.

FMT Reporters - 16 Oct 2023, 1:11pm

PETALING JAYA: A four-day safety audit on MYAirline earlier this year uncovered no signs of financial distress, says the Civil Aviation Authority of Malaysia (CAAM).

The aviation regulator today announced that it had suspended MYAirline’s air operator certificate (AOC) effective immediately for a period of 90 days pending further investigations.

The low-cost carrier had suspended its operations abruptly on Oct 12 because of “severe financial challenges”. The suspension is believed to have affected some 125,000 passengers who had bought tickets up to next year.

CAAM was criticised for having extended MYAirline’s AOC for two years on Oct 9, just three days before the low-cost carrier suspended its operations.

However, in a statement today, it said there were “no findings to indicate financial distress” during the safety audit carried out from May 29 to June 1 for the purpose of renewing the airline’s AOC.

MYAirline's licence to be suspended temporarily, says Loke

https://www.thestar.com.my/news/nation/2023/10/16/myairline039s-licence-to-be-suspended-temporarily-says-loke 

KUALA LUMPUR: The license of low-cost carrier MYAirline Sdn Bhd will be suspended temporarily, says Transport Minister Anthony Loke.

The Civil Aviation Authority of Malaysia (CAAM) is expected to announce the matter later on Monday (Oct 16), he said.

"The company still exists, it is suspending operations while looking for investors.

"It's a commercial issue but from the side of the authorities, we will be suspending their license temporarily," he told reporters after an event at the Malaysia International Trade and Exhibition Centre (Mitec) here on Monday (Oct 16).

[JuliusWong 0]

Press Release

FOR IMMEDIATE RELEASE

MYAirline Announces Further Updates and Plans

KUALA LUMPUR, Malaysia, 16 October 2023 – MYAirline has announced in a press conference today that it is acknowledging all issues associated with the airline’s decision to suspend operations and that it has taken steps to ensure the recovery of the airline.

“We acknowledge and understand the frustration experienced by our passengers," Dato’ Sri Azharuddin A. Rahman, MYAirline’s Interim Accountable Executive emphasized. "This situation arose due to our lack of a contingency plan, compounded by a last-minute investor withdrawal."

MYAirline also acknowledges its communication shortcomings with both the Malaysian Aviation Commission (MAVCOM) and the Civil Aviation Authority of Malaysia (CAAM), specifically our failure to engage with authorities and passengers in a timelier manner before deciding to temporarily suspend our operations.

The abrupt action was taken out of a genuine concern for the safety of our passengers and employees on a flight that operated from Wednesday night to early Thursday morning. "We issued the suspension notice at 0530 on Thursday morning," Dato’ Sri Azharuddin A. Rahman explained.

"While we promptly canceled the morning wave flights on Thursday, we acknowledge that some passengers on later flights were already at the airport, and this was an oversight on our part."

- Our Gratitude -

We extend our profound gratitude to Malaysia Airports Holdings Berhad for their invaluable assistance during this period when we were unable to do so ourselves. Our appreciation also goes out to industry partners including AirAsia, Batik Air, Malaysia Airlines, FireFly, the Airports of Thailand, and the Civil Aviation Authority of Thailand (CAAT).

"We observed the efficient response of MAVCOM and Malaysia Airports Holdings Berhad (MAHB), who swiftly managed the situation by rerouting our affected passengers to alternative carriers," Dato’ Sri Azharuddin noted. "We are grateful for MAHB's support, including the provision of meal and accommodation assistance to the affected passengers."

Our highest appreciation and gratitude to YB Anthony Loke Siew Fook, Minister of Transport Malaysia for his guidance and advice in finding the solution to this problem.

- Press Release Actions Taken -

MYAirline has been proactively addressing these issues through a series of meetings, making ongoing efforts to rectify errors and oversights in all areas as we strive to restore normal operations.

Once again, we encourage all affected passengers to contact us at customercare@myairline.my to initiate the refund process. We have established a hotline at 03-8966 2522, operational from 7 am to 6 pm daily, to facilitate the refund process and provide assistance as needed.

- Status of MYAirline Staff -

Staff welfare remains our top priority. As soon as funding is secured, we will prioritize statutory payments and staff' September salaries. It is important to note that all staff members remain under MYAirline employment, with no one is placed on unpaid leave or been terminated to date. We have met the Ministry of Labor to update them on this matter.

Dato’ Sri Azharuddin also provided an update on the status of key personnel in higher management, confirming that Stuart Cross has resigned and is no longer an employee of MYAirline.

- Our Plans -

MYAirline has initiated a Service Recovery Plan and Business Continuity Plan under the leadership of Dato’ Sri Azharuddin and relevant department heads, with a focus on improvements and increased accountability. A reprioritization of objectives will also be done and announced once recapitalization is completed.

In relations to the potential investors, MYAirline is actively exploring strategic partnerships, having received several proposals. All these proposals are going through detailed evaluation and due diligence. It is important to note that discussions with lessors are ongoing to retain our aircraft.

We will continuously provide timely updates to our staff and media as developments unfold.

ENDS

[jahur 0]

AirAsia keen to lease Airbus A320s used by MYAirline

AirAsia Aviation Group Ltd group chief executive officer (CEO) Bo Lingam said AirAsia is talking to all eight of MYAirline's aircraft lessors to determine the final number of aircraft that the budget carrier will be taking.

"They (lessors) asked us last week if we're interested and we said yes. We'll confirm by next week on the number of A320s we'll be taking," Bo told Business Times today after the launch of AirAsia's free seats campaign.

[JuliusWong 0]

Azharuddin: MYAirline’s refunds could reach up to RM22m, payout only when new investors come in

https://www.malaymail.com/news/malaysia/2023/10/16/azharuddin-myairlines-refunds-could-reach-up-to-rm22m-payout-only-when-new-investors-come-in/96618

By R. Loheswar - Monday, 16 Oct 2023 6:06 PM MYT

KUALA LUMPUR, Oct 16 — MYAirline interim accountable executive Datuk Seri Azharuddin Abdul Rahman today said that the estimated refunds to passengers for unfulfilled flights could reach up to RM22 million.

He said they have started the process by asking affected customers to send an email to its customer support unit at customercare@myairline.my to initiate the refund process.

He said as of October 12, 2023, they’ve received up to 18,000 emails.

“You can also call the hotline at 03-89662522 from 7am to 6pm daily. We estimate there are around 125,000 passengers affected by this.

MYAirline's owner open to relinquishing entire stake, says director Azharuddin

https://theedgemalaysia.com/node/686310

By Syafiqah Salim & Kang Siew Li / theedgemalaysia.com

KUALA LUMPUR (Oct 16): Cash-strapped airline MYAirline Sdn Bhd's major shareholder Datuk Allan Goh Hwan Hua is willing to relinquish all his shareholding in the low-cost carrier, said interim accountable executive and director Datuk Seri Azharuddin Abdul Rahman.

"We are actively exploring strategic partnerships, having received several proposals. All these proposals are going through detailed evaluation and due diligence," Azharuddin told a press conference on Monday — the first since the airline announced a suspension of its operations last Thursday.

"The potential investors could be one or many. And depending on the deal, if they (potential investors) take a majority stake, then it is up to them what they want to do with the airline (such as maintain or change the low-cost carrier business model)," he said.

MYAirline not giving up leased Airbus, in search of new investor

https://www.nst.com.my/business/corporate/2023/10/967788/myairline-not-giving-leased-airbus-search-new-investor

By BILQIS BAHARI - October 16, 2023 @ 6:58pm

SUBANG JAYA: MYAirline Sdn Bhd is adamant of retaining all nine of its Airbus A320s while waiting for a new white knight on swoop in and save it from a bleak future. 

Its interim accountable executive Datuk Seri Azharuddin Abdul Rahman said the airline is discussing with its lessors to keep all of its narrow-body aircraft. 

"In regards to the aircraft lessors, we are in talks with them to retain our aircraft," he told the media at MYAirline's press conference here today. 

Interestingly, AirAsia Aviation Group Ltd group chief executive officer (CEO) Bo Lingam told Business Times earlier today that AirAsia Bhd is interested in leasing up to six out of nine A320s  MYAirline is using. 

He said the airline is talking to the lessors to determine the final number of the narrow-body aircraft that it will be taking. 

"They (lessor) asked us last week if we're interested and we said yes. We'll confirm by next week on the number of A320s we'll be taking," Bo said, adding that AirAsia and MYAirline are leasing from the same aircraft leasing companies. 

MYAirline is leasing the nine A320s from eight lessors. They are Aviation Capital Group LLC, AerCap Holdings NV, Aircastle Ltd, Avolon, Carlyle Aviation Partners, Genesis, Mizuho and SMBC Aviation Capital. 

Each lessor is leasing one aircraft to MYAirline except Aircastle that leases two A320s. 

Edited October 17, 2023 by JuliusWong

[jani 0]

Who will invest in this mess? Especially when your first order of business is to pay RM22 million refunds. Money down the drain for any investor.