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

[JuliusWong 0]

On 10/6/2023 at 5:24 PM, KK Lee said:

Likewise, mas was losing about rm 800m per year for decades and was supported by sugar daddy.

To be honest, I would rather MH, being the national carrier, suffers manageable loss if they can't make any profit since they are IATA rated and certified for a lot of aspects which AirAsia Group or Batik Air wouldn't touch with ten feet pole. Moving hazardous or safety equipment and host of other special shipment across from one state to another would require a lot of expertise and qualification/ certificate. These are especially important and very crucial for Sabah and Sarawak.  

[flee 5]

MYAirline says CEO Rayner Teo steps down due to health reasons

https://www.nst.com.my/business/corporate/2023/10/964653/myairline-says-ceo-rayner-teo-steps-down-due-health-reasons

[Adam Lawrence 0]

MYAirline Files Denpasar late-Oct 2023 Schedule

Malaysian carrier MYAirline in the OAG has filed Kuala Lumpur – Denpasar schedule, on board Airbus A320 aircraft. Reservation for this route is not available on the airline’s website.

The schedule listing is displaying service scheduled between 26OCT23 and 28OCT23, with following timing.

Z9220 KUL0750 – 1100DPS 320
Z9221 DPS1140 – 1500KUL 320

https://www.aeroroutes.com/eng/231009-z9oct23dps

Edited October 9, 2023 by Adam Lawrence

[jahur 0]

MYAirline to get a new owner?

PETALING JAYA: Budget carrier MYAirline is expected to welcome a new owner soon.

A source close to the matter said the new owner, a local entrepreneur, is expected to pump in more funds into the airline which took to the skies last December.

 

[jahur 0]

Rumor mill floating about ranges from Berjaya group down to Sarawak State gov eyeing for a big stake.

[JuliusWong 0]

11 hours ago, jahur said:

Rumor mill floating about ranges from Berjaya group down to Sarawak State gov eyeing for a big stake.

Please no Berjaya Air. Anything they touch turns into ash, except Starbucks Malaysia maybe.

I am surprised washing dirty money couldn't sustain the business. Interesting.....

[jahur 0]

State sources dismiss rumoured Sarawak takeover of MYAirline

KUCHING (Oct 10): Sources close to the Sarawak government have dismissed a rumour about the state potentially taking over MYAirline.

MYAirline, headquartered in Subang Jaya, Selangor, is said to be changing its top management personnel due to financial woes and is also looking for a key investor or owner.

[jahur 0]

9 hours ago, JuliusWong said:

I am surprised washing dirty money couldn't sustain the business. Interesting.....

Initial seed funds were okay. Problem were them taking aircrafts at an expedited rate and same time paying high salary rate(heard it was highest paid in msia). If they are to maintain these sort of routine in the long run they need ample amount of continuous funds inserted until the fleet number stabilizes or try to maximise the sales yields(increasing ticket costs). Seems they're now prioritizing seeking new cash support to avoid delaying/adjusting salaries and maintaining aircraft delivery status quo.

[JuliusWong 0]

17 hours ago, jahur said:

Initial seed funds were okay. Problem were them taking aircrafts at an expedited rate and same time paying high salary rate(heard it was highest paid in msia). If they are to maintain these sort of routine in the long run they need ample amount of continuous funds inserted until the fleet number stabilizes or try to maximise the sales yields(increasing ticket costs). Seems they're now prioritizing seeking new cash support to avoid delaying/adjusting salaries and maintaining aircraft delivery status quo.

I won't be surprised if they are/ were playing the highest salary rate in Malaysia since they need to dangle the carrot for staff to jump ship, especially those from Capital A. Most of their current staff are actually ex-AirAsia's. They were initially pretty aggressive with their fleet expansion plan, but it has slowed on significantly. Even though they have signed on more A320ceo delivery for this year, supposed to end the year with 17 aircraft, now the fleet stands at only eight. With three months out before the year ends, I highly doubt they can add nine more A320ceo. My rough guess is earlier they are hindered by supply chain issue, and now compounded by recent came to light cash flow issue. Not forgetting they also signed up pilot training program with a company based in Vietnam and also set up its join venture ground handling agent with Menzies Aviation Malaysia. Both requires hefty amount of money to set up.

[flee 5]

It seems strange that a start up airline has run out of cashflow not even one year into its operations. It shows that their financial planning and management is not up to scratch. Should we be also doubting the quality of this company in other areas of its operations?

[jahur 0]

1 hour ago, flee said:

It seems strange that a start up airline has run out of cashflow not even one year into its operations. It shows that their financial planning and management is not up to scratch. Should we be also doubting the quality of this company in other areas of its operations?

The aviation scene in msia is a very cut throat environment its been repeatedly stated by mavcom that there is excess capacity and poor yields while costs aren't going down as a whole globally. Its not the good old days of rm2 success story plus no competition.

So in this case there is need for consistent financial pump to weather out anything and that can take up to years which some investors will not understand. Rayani had the wrong thing as well.

[KK Lee 5]

4 hours ago, flee said:

It seems strange that a start up airline has run out of cashflow not even one year into its operations. It shows that their financial planning and management is not up to scratch. Should we be also doubting the quality of this company in other areas of its operations?

Many under estimated hurdle, magnitude and duration of negative cashflow before the operation cashflow is positive. Fundraising is very limited in this industry and in this country. Controlling shareholders need ocean deep pocket to sustain.

 

[Pall 0]

Press Release
FOR IMMEDIATE RELEASE

MYAirline Announces Suspension of Operations
KUALA LUMPUR, Malaysia, 12 October 2023 – MYAirline regrettably announces the suspension of its operations effective 12 October 2023 until further notice. The airline has come to this extremely painful decision because of significant financial pressures that have made it necessary to suspend operations pending the shareholder restructuring and recapitalization of the airline.

In a statement from the Board of Directors, MYAirline said "We deeply regret and apologize 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."

We understand the inconvenience this may cause, and we are committed to assisting you through this situation. Kindly reach out to us at customercare@myairline.my, and our support team will be readily available to provide their assistance. In the meantime, we are advising affected passengers to not head to the airport and seek for alternative travel arrangements to their destinations.

The Board, shareholders and all of us at MYAirline will be working tirelessly to resume operations as quickly as possible but at this stage we are 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.

ENDS

[jahur 0]

MYAirline suspends operations as potential white knight pulls out

Supposed relief pulled out last minute.

Really hoping everyone gets it together. We already have rayani air as a good lesson. 

[Robert 0]

42 minutes ago, jahur said:

MYAirline suspends operations as potential white knight pulls out

Supposed relief pulled out last minute.

Really hoping everyone gets it together. We already have rayani air as a good lesson. 

very disappointing because friends tell me that they were ok to travel with. 

Seem to remember that upon launch they assured people that they were  well capitalised, seems not after this news. 

[flee 5]

On 1/17/2022 at 5:39 PM, JuliusWong said:

KUALA LUMPUR (Jan 17): MYAirline Sdn Bhd (MYAirline), a newly-established ultra low-cost carrier (ULCC), is expected to be launched soon, sources said, noting that it will challenge AirAsia Group Bhd’s dominance in the budget airline industry.

A check on the Malaysian Aviation Commission’s (Mavcom) website by theedgemarkets.com showed that the new ULCC, which was previously registered as Z9 Elite Sdn Bhd, has been granted conditional approval for an air service licence (ASL) by the commission on Dec 22, 2021. The licence is valid for 12 months from Jan 1 to Dec 31, 2022. An ASL allows the licence holder to conduct scheduled passenger and cargo services like those of Malaysia Airlines Bhd and AirAsia.

MYAirline’s filing with the Companies Commission of Malaysia (SSM) revealed that it has two million shares at RM1 per share, amounting to RM2 million in paid-up capital.

“Credible information that a new ULCC is currently in the process of seeking regulatory approval to set up in Malaysia, having signed deals to lease two Airbus A320s at cheap leasing rates,” CGS-CIMB Research aviation analyst Raymond Yap wrote.

More: https://www.theedgemarkets.com/article/malaysia-see-entry-new-ultra-lowcost-carrier-myairline?fbclid=IwAR2w59vIUyXcWkdWwbS8y6syVNjewZ9wcpjAK7lXq4aQ4oY852yvdatGxoo

The shareholders made up: 

1. Zillion Wealth Bhd (88%)
2. Trillion Cove Holdings Bhd (10%)
3. Rayner Teo Kheng Hock (2%)

Directors are:

1. Datuk Goh Hwan Hua - shareholder of both Zillion Wealth and Trillion Cove
2. Datuk Abd Hamid Mohd Ali - previously the COO of MAHB between 1992 and 2016.
3. Datuk Seri Azharuddin Abdul Rahman - formerly DG of Malaysian Civil Aviation Department (DCA) and former chairman of (CAAM) between 2008 to 2018.
4. Rayner Teo Kheng Hock - previously AirAsia’s group head of sales and distribution between 2004 to 2020.
5. Jothi Prakash Murugan - has a background in information technology (IT) and serves as a director of Trillion Cove.

Let me see, shall we take a bet how long it will last? The main shareholding companies sound very doggy. Datuk Goh Hwan Hua is the guy behind i-serve raided by BNM 2 months ago. I would say be careful........https://forum.lowyat.net/topic/5215870/+60

 

This was the OP of this thread - it looks like Julius was right in being sceptical about this venture.

[JuliusWong 0]

1 hour ago, Robert said:

very disappointing because friends tell me that they were ok to travel with. 

Seem to remember that upon launch they assured people that they were  well capitalised, seems not after this news. 

The aviation industry is a cut throat business and require very deep, I mean very, very deep pockets aka bottomless market. A deep pocket is not sufficient to survive the market. Once the borders reopens, and the other airlines returned more capacity into the market = overcapacity, coupled with ticket and price dumping, smaller airline like MYAirline won't be able to survive the onslaught. They were capitalising on passengers who were badly burnt by AirAsia Group/ Capital A and was riding on their on-time performance compared to the older "red". And new wider seats...........when they could have just save the money for something else. The novelty would soon wear off, and reality sets in. This and their aggressive fleet plan and embarking on international routes within less than a year of operation is suicidal. AirAsia responded with deploying an A330 on their BKK flight, more capacity/price dumping. In the end everyone dies in the battle field. They also signed up pilot training program with foreign partner few weeks ago and set up new JV for ground handling. All in less than a year. Too many things on their plates. Not forgetting the higher than usual industry average salary for its employees. I really pity those who lost their job with AirAsia Group after COVID19 shutdown and hopped over to MYAirline, this again.......

Edited October 12, 2023 by JuliusWong

[JuliusWong 0]

6 minutes ago, flee said:

This was the OP of this thread - it looks like Julius was right in being sceptical about this venture.

Haha, I posted the same thing in my Facebook in Jan 2023. Now my friends are tagging me for 4D numbers. LOL! 

I had two wonderful flight with them, the inaugural flight to Kuching, and recently DMK return flight. I feel so sorry for their crew now. Hoping for a positive outcome for all parties involved.

[JuliusWong 0]

[JuliusWong 0]

MYAirline gets extension to operate as commercial airline until 2025

October 9, 2023 @ 7:03pm

https://www.nst.com.my/business/corporate/2023/10/965019/myairline-gets-extension-operate-commercial-airline-until-2025

KUALA LUMPUR: Low-cost carrier MYAirline Sdn Bhd has received a two-year extension to its air operator certificate (AOC) by the Civil Aviation Authority of Malaysia (CAAM). 

The certification approval from the country's aviation regulator will allow MYAirline to continue its commercial airline operations until 2025. 

MYAirline interim chief executive officer (CEO) and chief operating officer Stuart Cross said the airline had undergone a thorough evaluation of its operations.

I think they spend their last few dollars on their AOC extension, only to be suspended less than 72 hours later.

[jahur 0]

Batik Air Malaysia, Airasia, MAB offering up to 50% discount for anyone with confirmed tickets with Myairlines sector for travel dates up to nov 30th. Its quite likely the airlines would rebate some of the costs from Mavcom. 

[jahur 0]

2 minutes ago, JuliusWong said:

I think they spend their last few dollars on their AOC extension, only to be suspended less than 72 hours later.

AOC and ASL are the essential items required. If they cant renew these two its a full closeshop without any chances of coming back as to reapply back from scratch is very costly.

[JuliusWong 0]

18 minutes ago, jahur said:

Batik Air Malaysia, Airasia, MAB offering up to 50% discount for anyone with confirmed tickets with Myairlines sector for travel dates up to nov 30th. Its quite likely the airlines would rebate some of the costs from Mavcom. 

Our RM2 MAVCOM fee finally come to good use. LOL! Now for those less informed aka netizen can learn a thing or two why MAVCOM/ MAVCOM fee is required. A lot of netizens are now questioning why allow a scammer launch an airline, why Anthony allows the airline to fly? Why renew license two days ago then?? Blah blah blah....lol

[JuliusWong 0]

45 minutes ago, jahur said:

Batik Air Malaysia, Airasia, MAB offering up to 50% discount for anyone with confirmed tickets with Myairlines sector for travel dates up to nov 30th. Its quite likely the airlines would rebate some of the costs from Mavcom. 

Malaysia Airlines/ Firefly:

Malaysia Airlines wishes to offer assistance to passengers of MYAirline who are stranded due to the suspension of the airline's operations today.

Malaysia Airlines invites the management of MYAirline to work together in reallocating their passengers on our flights where available.

However, passengers with an urgent need to travel may immediately visit any Malaysia Airlines ticketing offices to make their booking and receive 55% off on base fare of their flight tickets on affected routes by presenting their MYAirline tickets for travel up to November 2023.

We are here to assist passengers in getting to their destination seamlessly and safely.

AirAsia Group:

In response to today’s announcement of the suspension of MYAirline operations, AirAsia is extending its support to affected passengers of MYAirline, in hopes of easing the inconvenience of their disrupted travel plans. 

To provide assistance during this time, AirAsia is announcing a special offer of a 50% discount on base fares* exclusively to MYAirline passengers. Effective immediately, the special offer is applicable to all MYAirline passengers with confirmed flight bookings to and from Kuala Lumpur, Langkawi, Penang, Tawau, Kota Bharu, Kuching, Kota Kinabalu, Kota Kinabalu-Tawau, and Don Mueng-Bangkok and Suvarnabhumi-Bangkok from today until 30 November 2023.

To redeem this offer, affected passengers can present their confirmed MYAirline flight bookings at AirAsia Sales Counters at KL Sentral in Kuala Lumpur, Kuala Lumpur International Airport (Terminal 2) in Sepang, Langkawi International Airport, Penang International Airport, Sultan Ismail Petra Airport (Kota Bharu), Kuching International Airport, Tawau Airport, Kota Kinabalu International Airport, Don Mueng International Airport and Suvarnabhumi Airport in Bangkok.

*The 50 per cent base fare is for one-way fare excluding airport tax, MAVCOM fee, fuel surcharge and other applicable fees. Other terms and conditions apply.

Batik Air:

Batik Air is offering special one-way fares to MYAirline customers for travel from today until 30 November.

The fares include Penang at RM129, Langkawi at RM159, Kuching at RM199, and RM299 for Don Mueang and Kota Kinabalu.

Affected passengers can make the booking through email at mya@batikair.com.my and must attach a copy of their MYAirline tickets.

[KK Lee 5]

Given the background of controlling shareholders; their business model is unusual, don't have resources to raise funds from institutions and conventionally.