Less than 11 months after it began flying, Malaysia’s low-cost carrier MYAirline abruptly halted operations on Thursday, claiming financial difficulties. Numerous passengers were left stranded after the airline’s 40 flights were cancelled.
The statement from MYAirline was published on social media, surprising both the government and many travelers. In spite of its “extremely painful decision,” the company apologized and claimed that “significant financial pressures” compelled it to halt operations until an ownership restructure and recapitalization could be completed.
“In order to avoid this suspension, we have worked really hard to investigate alternative partnering and capital-raising opportunities. Unfortunately, due to time restrictions, we were forced to make this choice, according to a statement from the airline’s board of directors.
The action was taken shortly after the airline announced that it was close to establishing a strategic alliance. The suspension, according to local media, suggested such negotiations may have ended in failure.
Anthony Loke, the transport minister for Malaysia, criticized the quick closure, calling it unacceptable and damaging to his nation’s reputation. For flights scheduled until March 2024, he said that the airline has sold 125,000 tickets totaling about 20 million ringgit ($4.2 million).
During a press conference, Loke said, “We were totally stunned and taken completely by surprise. “They failed to notify us. When there were no airline employees present, they abruptly ceased operations. How are you able to suddenly vanish like that? This is quite reckless.
The air license for MYAirline expires next month; the Malaysian Aviation Commission will choose whether to withdraw it, he said.
Businessman Allan Goh Hwan Hua is the owner of the airline, which offered service to eight local locations as well as Bangkok, the capital of Thailand. CEO Rayner Teo, who has a 2% share in the company, resigned only two days ago, claiming health issues.
The Malaysian Aviation Commission ordered MYAirline to stop all flight purchases and reservations right now and stated that reimbursements were required. It stated that, among other things, it was looking into the airline following allegations that workers’ pay hadn’t been paid.
The notification was posted on social media by MYAirline early on Monday morning, after early-morning flight passengers had already checked in at the terminal. Social media was used by irate passengers to lambast the carrier for the unexpected news that left them stranded.
39 flights to domestic locations and one to Thailand’s Don Mueang Airport were canceled on Thursday, according to Malaysia Airports, which oversees the nation’s airports. This had an impact on about 5,000 passengers. It claimed the situation was under control and that it was trying to assist individuals who were impacted.
Discounts and special pricing were announced by Malaysia Airlines, low-cost airline AirAsia, and Batik Air to assist MYAirline travellers impacted by the suspension.