Livid Loke lambasts MYAirline after ministry caught by surprise

PARLIAMENT | The Transport Ministry was caught by surprise with regard to MYAirline Sdn Bhd’s abrupt suspension of its operations this morning, said Anthony Loke.

The visibly upset transport minister criticised the budget carrier for being “irresponsible”.

“We were caught by surprise. We only knew of this (their decision to cease operations) late last night and by 6am, they suspended all operations.

“Mavcom (Malaysian Aviation Commission) was not even informed,” he told a press conference at the Parliament lobby this evening.

“I got the information (this morning) and immediately contacted (Mavcom chairperson) Saripuddin Kassim.

“Even Mavcom was not informed by MYAirline until we asked them and they confirmed the suspension (of operations) would take place at 6am,” Loke added.

The minister said approximately 125,000 people, including those who bought flight tickets in advance, were affected by the sudden decision.

The value of ticket sales - booked up to March 2024 - amounted to approximately RM20 million, he said.

Loke also said MYAirline assured Mavcom of providing refunds to its passengers. However, the airline has yet to issue a public statement on this.

He added that Mavcom was instructed to form a special task force to cooperate with Bank Negara Malaysia - to ensure easier refunding of tickets to those who paid with credit cards.

Reports indicate that about 10,000 passengers, today alone, were affected by the suspension of 39 flights servicing local destinations and one international route to Thailand.

Passengers who waited in the wee hours to catch morning flights today were greeted with empty MYAirline counters this morning at KLIA2.

In a statement at 5.30am, MYAirline advised its passengers not to proceed to the airport and urged those who require assistance to contact the company at customercare@myairline.my.

Company having financial issues

MYAirline said it explored various partnerships and capital-raising options but was unsuccessful.

The company also said it would work to resume operations as quickly as possible but was unable to commit to any timeline.

MYAirline co-founder and CEO Rayner Teo resigned on Sunday, citing health reasons. The company was founded in 2021 with Allan Goh Hwan Hua as its major shareholder.

On a related matter, Loke said the status of the company’s temporary air service license (ASL), which expires on Nov 14, will be discussed internally by Mavcom.

The company received an official ASL on Nov 15 last year from Mavcom and conducted its maiden flight two weeks later.

Unpaid employees?

The DAP secretary-general acknowledged that the airline had financial constraints and was looking for new investors.

“(They could have) at least come forward and worked with us and not decide for themselves without taking any kind of responsibility by not telling Mavcom,” he said, adding that there have been allegations of the company not paying their staff.

While MYAirline has some 700 employees, The Edge reported that Mavcom was currently investigating allegations that MYAirline had not paid its employees.

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