MYAirline Sdn Bhd, which abruptly halted all operations on October 12, 2023, has reportedly concluded a sale and purchase agreement (SPA) with an undisclosed investor from the Middle East.
Despite the secrecy surrounding the investor’s identity, sources suggest that this development positions the airline to potentially recommence operations by mid-2024.
Insider familiar with the matter disclosed to Bernama that the initial priorities include addressing pending salary payments and refunding affected passengers. “The first action item hopefully is the payment of salaries and refunding passengers,” the insider told the local news agency.
The successful collaboration with the Middle Eastern investor has prompted MYAirline to submit an application to the Malaysian Aviation Commission (Mavcom) for a conditional air service license (ASL).
Subsequent steps involve obtaining the Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM) before securing a comprehensive ASL to resume flight operations. Mavcom clarified that the evaluation process would commence upon the submission of a thorough application.
In accordance with Civil Aviation Directives 6004, which delineate the criteria for the issuance and renewal of the Air Operator Certificate (AOC), it is stipulated that a fleet must comprise a minimum of two aircraft or helicopters for scheduled operations. Notably, exceptions are permissible for non-scheduled operations, allowing for a reduction to one aircraft or helicopter. The standard processing time for an Air Service License (ASL) application is typically a minimum of 90 days.
Emphasising the urgency for MYAirline to expeditiously clear its debts to restore operational capabilities, an insider underscored the indeterminacy surrounding whether the airline will be managed by an international or domestic entity. This consideration is in light of the requisite 51% Malaysian shareholding mandated for airline takeovers in Malaysia. Despite securing an investor, the timeline for addressing outstanding issues, including salary disbursements for approximately 900 employees and reimbursements for 117,000 passengers, remains uncertain.
According to Mavcom’s latest update on January 8, 2023, a total of 4,304 customers affected by the airline’s suspension have received assistance with refunds through the chargeback process. Additionally, some customers have initiated the refund process with their individual banks. However, the fate of employees who have been part of the airline since its establishment on December 1, 2022, remains uncertain following the recent shift in shareholders and management. This indicates the possibility of substantial organizational changes in the near future.
In response to the information provided by a source, Minister of Transport, Anthony Loke Siew Fook, was quoted by an online news portal stating, “I’ll be meeting them (MYAirline) shortly. I want to hear from them first… I’m not sure what the proposal is.”
He outlined specific conditions for MYAirline to meet if they intend to restart operations, emphasising the necessity of refunding all passengers and settling outstanding payments to staff. “If they can fulfill these two conditions, only then can we start to talk.”
MYAirline ceased operations abruptly on October 12 last year, citing severe financial challenges merely 11 months after its inauguration. A recent report from Bernama indicated that the airline has successfully secured a Middle Eastern investor, prompting confidence that operations could potentially resume by the middle of this year.
