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

[JuliusWong 0]

Refund to passengers = RM22 million

Number of tickets sold (according to Anthony Loke few days ago) = 125,000 tickets

Average value of each ticket sold= 22,000,000/ 125,000 = RM176!

RM176! Oh dear, how can you sustain an airline company when each ticket is sold on average RM176.......I know I am oversimplifying but......

[JuliusWong 0]

Police arrest local airline co-founder

https://www.freemalaysiatoday.com/category/nation/2023/10/18/police-arrest-local-airline-co-founder/

Bukit Aman Commercial CID director says investigations have been opened under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

KUALA LUMPUR: The police have arrested the co-founder of a local airline, along with his wife and son on Tuesday evening, Bukit Aman Commercial CID director Ramli Yoosuf said.

He added that the three had been detained to facilitate investigations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

“The co-founder, 57, who is also a shareholder of the airline, along with his wife, 55, and son, 26, were arrested at their residence in Shah Alam at 5.30pm,” he said.

Ramli added that the police will submit remand applications for the three tomorrow.

[jahur 0]

Wonder if the authorities ever took action against Datuk Seri Jessie Lai and her lot for the mess they made with 2 b737-400 Suasa/Moonspace air or whatever that pyramid bait business was called.

MonSpace wins suit, Kepong MP ordered to pay RM2 million in damages
 

Bunch of scammers around out there now we have Myairlines to add to the list.

[flee 5]

CAAM should make it a requirement for airlines to purchase insurance to cover refunds to pax in event of business difficulties. It would be like professionals who take up professional indemnity insurance in case they are sued for professional misconduct or malpractice.

[JuliusWong 0]

48 minutes ago, jahur said:

Wonder if the authorities ever took action against Datuk Seri Jessie Lai and her lot for the mess they made with 2 b737-400 Suasa/Moonspace air or whatever that pyramid bait business was called.

MonSpace wins suit, Kepong MP ordered to pay RM2 million in damages
Bunch of scammers around out there now we have Myairlines to add to the list.

Monspace was even worse, they even have the former IGP as CEO in one of their divisions. Till now I still cannot understand how Jessie Lai won the lawsuit. 

[Chris Tan 0]

On 10/16/2023 at 11:09 PM, JuliusWong said:

RM176! Oh dear, how can you sustain an airline company when each ticket is sold on average RM176.......I know I am oversimplifying but......

Ryanair had an average fare of 27EUR (~135MYR) in 2021 and they seem to be doing fine.

https://www.statista.com/statistics/1125265/average-ticket-price-selected-airlines-europe/

Edited October 18, 2023 by Chris Tan

[JuliusWong 0]

1 hour ago, Chris Tan said:

Ryanair had an average fare of 27EUR (~135MYR) in 2021 and they seem to be doing fine.

https://www.statista.com/statistics/1125265/average-ticket-price-selected-airlines-europe/

You forgot to mention they carried the highest passengers among all the Europe-based airlines. In 2022 Ryanair Group carried 160 million passengers in the calendar year, this was 58% more than Lufthansa Group's 102 million.

Edited October 18, 2023 by JuliusWong

[flee 5]

3 hours ago, Chris Tan said:

Ryanair had an average fare of 27EUR (~135MYR) in 2021 and they seem to be doing fine.

https://www.statista.com/statistics/1125265/average-ticket-price-selected-airlines-europe/

It may not be a like for like comparison. I think our back of the envelope calculation of MyAirlines avertage ticket price includes taxes and other fees, not just the fare.

[jani 0]

21 hours ago, flee said:

CAAM should make it a requirement for airlines to purchase insurance to cover refunds to pax in event of business difficulties. It would be like professionals who take up professional indemnity insurance in case they are sued for professional misconduct or malpractice.

 

Which the airlines would just pass to pax hence tix price will increase

[jahur 0]

The “disappearance” of MYAirline is bad news but good for Malaysia

The domestic airline market had been rife with talks of a troubled MYAirline for several weeks leading up to its suspension, with employees grumbling about unpaid or half paid salaries.

Apart from disruptions in staff pay, suppliers and vendors were also affected, including Malaysia Airports Holdings Bhd (MAHB) and state-owned oil giant Petronas, both allegedly with over MYR30 million in arrears.

Malaysia’s twin regulators, the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom), have lots to explain.

CAAM confirmed in a statement it could not find any sign of financial distress following a technical audit done in May.

However, a source claimed if the regulators looked internally, they might just discover that MYR800,000 in navigational services fees and regulatory service charges (RSC) due to them have not been paid in months.

Then there are the trade payables, including unpaid fees to Thai authorities following MYAirline’s launch of flights to Bangkok’s Suvarnabhumi and Don Muang in June this year, that point to a wider systemic failure and blunder.

A report by The Edge, a business daily, cited sources saying the airline had burnt some MYR380 million since it began flying at end-2022 with a further loss of almost MYR50 million in forward bookings.

All told, observers reckoned MYAirline may have racked up losses of up to MYR500 million.

MYAirline is backed by groups with names like Trillion Cove Holdings and Zillion Wealth Bhd. Trillion Cove is a money-lending and financing company controlled by businessman Allan Goh Hwan Hua.

The names of these entities alone ought to have alerted regulators, particularly after a company belonging to Goh, I-Serve Online Mall, was one of seven companies fined a total of MYR50 million recently by Bank Negara Malaysia, the central bank, for accepting deposits without a licence.

MYAirline’s failure has incited an active debate over the appropriateness of Malaysia’s airline and aviation policies.

The airline’s finances were in a bad way since its launch; it grew quickly, leasing a fleet of A320 jets, purportedly for about USD200,000 a month for each plane.

The carrier was believed to be running a liability deficit from day one.

Its business model – unsound from the start – was to take on AirAsia, and to fill in the vacuum left by domestic carriers due to a shrunken capacity and fewer routes during Covid.

Operations were exceptionally expensive: a monthly budget of MYR10 million for its 700 workers, with management and crew (cockpit and cabin) getting paid MYR4 million, nearly half of it.

Analysts estimated leasing rental costs of around MYR9 million a month, to eight international lessors, due to the weakening ringgit and firm oil prices.

These lessors have since sent termination of contract letters to retrieve their nine A320s (plus two currently in the hangar).

The leasing companies are not blameless in MYAirline’s fiasco. Desperation to place aircraft post-Covid and pure greed led the lessors to punt on a shady startup.

[Chris Tan 0]

On 10/18/2023 at 2:06 AM, JuliusWong said:

You forgot to mention they carried the highest passengers among all the Europe-based airlines. In 2022 Ryanair Group carried 160 million passengers in the calendar year, this was 58% more than Lufthansa Group's 102 million.

 

On 10/18/2023 at 4:32 AM, flee said:

It may not be a like for like comparison. I think our back of the envelope calculation of MyAirlines avertage ticket price includes taxes and other fees, not just the fare.

In other words...... just looking at the average ticket price is hardly a fair analysis

[JuliusWong 0]

19 hours ago, Chris Tan said:

In other words...... just looking at the average ticket price is hardly a fair analysis

You didn't read my comment fully "RM176! Oh dear, how can you sustain an airline company when each ticket is sold on average RM176.......I know I am oversimplifying but......" 

So what is your point?? Ryanair flew 160million pax, therefore they can afford to offer cheap fare, MYAirlines is at most 1/1000000th of ryanair size, offering such cheap fare is suicidal.

[KK Lee 5]

15 hours ago, JuliusWong said:

You didn't read my comment fully "RM176! Oh dear, how can you sustain an airline company when each ticket is sold on average RM176.......I know I am oversimplifying but......" 

So what is your point?? Ryanair flew 160million pax, therefore they can afford to offer cheap fare, MYAirlines is at most 1/1000000th of ryanair size, offering such cheap fare is suicidal.

 

On 10/18/2023 at 5:06 PM, JuliusWong said:

You forgot to mention they carried the highest passengers among all the Europe-based airlines. In 2022 Ryanair Group carried 160 million passengers in the calendar year, this was 58% more than Lufthansa Group's 102 million.

 

On 10/18/2023 at 3:50 PM, Chris Tan said:

Ryanair had an average fare of 27EUR (~135MYR) in 2021 and they seem to be doing fine.

https://www.statista.com/statistics/1125265/average-ticket-price-selected-airlines-europe/

Like many businesses, airlines benefit from economies of scale and the 'real money' is not in operating profit but stock market.

 

[Alif A. F. 0]

FLYING A SUSPENDED AIRLINE - MALAYSIA'S FAILED MYAIRLINE! - YouTube

Josh Cahill managed to hop on the airline days before it went bust.

Edited October 22, 2023 by Alif A. F.

[JuliusWong 0]

As MYAirline co-founder’s remand ends today, cops nab another man in Bangsar for ongoing money laundering probe

https://www.malaymail.com/news/malaysia/2023/10/23/as-myairline-co-founders-remand-ends-today-cops-nab-another-man-in-bangsar-for-ongoing-money-laundering-probe/97858

By Kenneth Tee - Monday, 23 Oct 2023 9:44 AM MYT
KUALA LUMPUR, Oct 23 — A Malaysian man in his 40s has been arrested in relation to ongoing investigations against low-cost carrier MYAirline co-founder Datuk Allan Goh Hwan Hua and his family who are suspected of involvement in money laundering offences.

Bukit Aman Commercial Crimes Investigation Department director Datuk Seri Ramli Mohamed Yoosuf said the latest arrest was made at the suspect’s home in Bangsar here earlier this morning.

“The suspect will be taken to the centralised Jinjang lock-up to be remanded.

“Investigations are ongoing pertaining to the review of important documents related to i-Serve’s business transactions,” he said in a statement to the media.

i-Serve or its full name, i-Serve Online Mall Sdn Bhd, is an e-commerce company where Goh is a shareholder.

Bank Negara Malaysia had fined i-Serve and six other companies affiliated with it RM50 million in October last year for illegal deposit-taking and money laundering.

Goh, his 55-year-old wife and 26-year-old son were arrested at their home in Shah Alam, Selangor on October 17 for investigations under the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001.

Transport Ministry wants Mavcom to answer for MYAirline licence approval

https://www.nst.com.my/business/corporate/2023/10/970516/transport-ministry-wants-mavcom-answer-myairline-licence-approval

By BILQIS BAHARI - October 23, 2023 @ 5:04pm

KUALA LUMPUR: The Transport Ministry is investigating on how the air service licence (ASL) was granted to the financially-troubled MYAirline Sdn Bhd in 2022.

Transport Minister Anthony Loke Siew Fook has taken the Malaysian Aviation Commission (Mavcom) to task for giving out the licence.

"Whether or not they have gone through a proper process and procedure, that is something that we need further investigation.

"This is definitely something that Mavcom has to be answerable. They have to be accountable in terms of the process of granting the (ASL) licence," LOke told reporters after officiating Batik Air Malaysia Sdn Bhd's codeshare partnership with Emirates here today.

The procedure prior to registering a company as an air service operator in Malaysia starts with applying for an ASL from Mavcom before applying for an air operator certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM).

[jahur 0]

1 a320 has been reregistered to VP-CAQ

[jahur 0]

MYAirline left fleet-less, all 10 aircraft returned to lessors

CAAM confirmed to Business Times yesterday on the deregistration request of five aircraft namely with the registration numbers 9M-DAC and 9M-DAD on Oct 26, 9M-DAJ and 9M-DAL on Oct 27 and 9M-DAH on Nov 3.

The sudden suspension of MYAirline's operations had partly led to the operating loss that SIA Engineering Co Ltd (SIA Engineering) made in its second quarter FY2024 result.

 

Pretty much checkmate.

[Pall 0]

28 minutes ago, jahur said:

MYAirline left fleet-less, all 10 aircraft returned to lessors

CAAM confirmed to Business Times yesterday on the deregistration request of five aircraft namely with the registration numbers 9M-DAC and 9M-DAD on Oct 26, 9M-DAJ and 9M-DAL on Oct 27 and 9M-DAH on Nov 3.

The sudden suspension of MYAirline's operations had partly led to the operating loss that SIA Engineering Co Ltd (SIA Engineering) made in its second quarter FY2024 result.

 

Pretty much checkmate.

That's a new record. Fastest ever repossession exercise.

Show's how high in demand A320's are in the second hand markets.

[flee 5]

1 hour ago, jahur said:

MYAirline left fleet-less, all 10 aircraft returned to lessors

CAAM confirmed to Business Times yesterday on the deregistration request of five aircraft namely with the registration numbers 9M-DAC and 9M-DAD on Oct 26, 9M-DAJ and 9M-DAL on Oct 27 and 9M-DAH on Nov 3.

The sudden suspension of MYAirline's operations had partly led to the operating loss that SIA Engineering Co Ltd (SIA Engineering) made in its second quarter FY2024 result.

 

Pretty much checkmate.

Bad management has consequences. It is good that they collapsed before more people are impacted by them.

[jani 0]

I wonder if their standard reply to refunds is still "we are waiting for investors".. Not sure who will put up money for an airline that has no airplanes.... or even a license now

[flee 5]

I remember that Indonesia requires an airline to own at least five aircraft before they can even register as an airline. Maybe CAAM should consider this measure too, as it requires the company to have higher capital to start up an airline.

[jahur 0]

MYAirline clarifies it still left with four aircraft, only six returned to lessors  MYAirline clarifies it still left with four aircraft, only six returned to lessors

KUALA LUMPUR (Nov 6): Cash-strapped MYAirline Sdn Bhd (MYAirline) has issued a clarification regarding the status of its leased aircraft and licence, to address several inaccuracies and misinformation that have been disseminated through various media outlets.

In a statement on Monday, the low-cost airline said that only six out of ten of its aircraft had been deregistered by its lessors, contrary to certain reports stating that the airline is left with no aircraft as all had been returned to its lessors.

“Out of the ten aircraft previously under MYAirline's management, it has been confirmed that six aircraft have been deregistered by our lessors,” it said.

 

Misinformation about MYAirline can undermine revival, says airline

PETALING JAYA: Inaccuracies and misinformation in news reports about MYAirline has the potential to undermine efforts for its revival, says the beleaguered airline.

The airline said such reports could hamper their efforts especially as they are currently engaged in advanced discussions with potential investors.

 

[Craig 0]

17 hours ago, flee said:

I remember that Indonesia requires an airline to own at least five aircraft before they can even register as an airline. Maybe CAAM should consider this measure too, as it requires the company to have higher capital to start up an airline.

What are the owners/investors going to do with the 5 aircraft if they can't register it for the airline tho? Are they going to register it to a shell company and then transfer it over? Idling 5 aircraft on the ground whilst waiting for regulatory approval doesn't sound prudent.

Edited November 7, 2023 by Craig

[jahur 0]

1 hour ago, Craig said:

What are the owners/investors going to do with the 5 aircraft if they can't register it for the airline tho? Are they going to register it to a shell company and then transfer it over? Idling 5 aircraft on the ground whilst waiting for regulatory approval doesn't sound prudent.

It was a temporary curb back then to stop all aoc applicants. Cause that time any millionaire was trying to setup an unsafe/unreliable/non long term airline in indonesia like some pasar malam. 

It was also a kill switch for quite a few airlines in indonesia that needed to be shut down.

Edited November 7, 2023 by jahur

[Craig 0]

7 hours ago, jahur said:

It was a temporary curb back then to stop all aoc applicants. Cause that time any millionaire was trying to setup an unsafe/unreliable/non long term airline in indonesia like some pasar malam. 

It was also a kill switch for quite a few airlines in indonesia that needed to be shut down.

That makes sense. Because there are so many airline popping out of Indonesia that I don't even know it existed. My friend who used to work in Jakarta told me if he can't get there on Garuda, he's not going because of the safety records of some airlines (some exceptions given to Indonesia Air Asia and Batik Air, lower on the list compared to GA but it's not on his no-fly list).