MYAirline Sdn Bhd has abruptly announced the suspension of its operations effective today until further notice, caused by “severe financial challenges”. In the wake of this announcement, the Malaysian Aviation Commission (MAVCOM) has directed the troubled budget carrier to take responsibility and reimburse customers who booked their flights prior and are now affected by this development. Several other airlines have also taken the initiative to come forward and offer assistance to impacted MYAirline passengers.

In a statement posted on its social media accounts early this morning, MYAirline said that it came to this “extremely painful decision because of significant financial pressures”, and that it is pending shareholder restructuring and recapitalisation moving forward. The airline had seen several top executives leave in the past months, with the most recent being chief executive officer Rayner Teo just a few days ago, who cited health reasons.  

“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,” MYAirline stated in its notice.

MYAirline was reported to have been pursuing investors to help sustain its operational costs amidst financial struggles, but a potential deal that involved an investor buying a controlling stake allegedly fell through at the final moment. This ultimately forced MYAirline’s hands, leading to the current situation. In its statement, the airline also urged customers to reach out to its support team at [email protected] for assistance, but did not explicitly state that it will be refunding affected travellers.

Meanwhile, MAVCOM has released a statement stating that it will hold MYAirline accountable for refunds for affected travellers. “The commission stands firm that MYAirline is still liable to refund consumers who have purchased tickets with the airline but are unable to travel,” it said.

To better assist impacted passengers, the local aviation regulator said these individuals can also submit their feedback and request for assistance via several MAVCOM channels, including:

• MAVCOM consumer hotline at 1-800-18-6966 (within Malaysia) and +603 7651 2777 (outside Malaysia)
• Email MAVCOM at [email protected]
• MAVCOM’s FlySmart website and mobile app (Google Play or the App Store)

In the meantime, MAVCOM noted that it is in the process of investigating MYAirline’s situation based on internal reviews and various complaints received on the airline, including unpaid payments to its employees. The regulator also said that it will provide further updates in due course, and that the airline has been instructed to stop the sale and booking of tickets on all booking platforms until further notice.

Meanwhile, several other airlines have stepped up to offer assistance to MYAirline’s affected passengers, including Malaysia Airlines (MAS), Batik Air, and AirAsia. Specifically, MAS will re-allocate passengers on its flights between Kuala Lumpur and Kota Kinabalu, Kuching, Langkawi, and Bangkok. Batik Air, on the other hand, is offering special one-way fares on selected routes from Kuala Lumpur, while AirAsia announced a special offer of 50% discount on base fares exclusively for affected MYAirline passengers.  

(Sources: MYAirline, MAVCOM)

• TAGS:
• AirAsia
• Malaysia Airlines
• Malaysian Aviation Commission
• MAS
• Mavcom
• MYAirline
• Rayner Teo