There are “severe financial challenges” at MYAirline Sdn Bhd, which means the company has temporarily stopped operating.
The airline said it had explored all avenues for potential partnerships and capital-raising exercises to save the company.
“Sadly, time constraints have left us with no alternative but to take this decision.”
The low-cost airline said on Sunday that Rayner Teo had quit as CEO on 7 October because of “health concerns.”
Stuart Cross, already the chief operating officer, took over as acting CEO.
MYAirline said its operations would stay “steadfast” and close to finalizing “strategic partnerships.” However, as it switched from its first summer to winter flight schedules, it was consolidating some routes.
“The situation has been further compounded by the delayed delivery of some aircraft that were originally scheduled to be operational by now,” it had said.
Soon after, someone knowledgeable of the situation said the company would soon have a new owner—a local businessman—who would bring in more money.
“We had a town hall with the incoming owner, and now they are fine-tuning the details,” the source told FMT Business on condition of anonymity.
In October of last year, source said that local businessman Goh Hwan Hua owned 88% of the company through Zillion Wealth and 10% through Trillion Cove Holdings.
Rayner Teo owns the last 2% of the company. Before joining the company, he and the top management team had both worked for AirAsia, a low-cost airline.
The Malaysian Aviation Commission (Mavcom) said it has set up special hotlines and channels to help customers affected by MYAirline’s decision to stop flying.
Mavcom said MYAirline is still responsible for refunding customers who bought tickets but can’t go.
“Mavcom has instructed MYAirline to immediately manage affected consumers, which includes amongst others notifying them of the suspension, and publishing the said notification in the airline’s available communication channels.
“MYAirline has also been instructed by the commission to immediately discontinue the sale and booking of flights from all booking platforms until further notice.”
It began by flying domestic routes, starting with Langkawi, Kuching, and Kota Kinabalu.
Bangkok, Thailand’s capital, became an international stop in June. Flights go to both Suvarnabhumi and Don Mueang airports.
There are “severe financial challenges” at MYAirline Sdn Bhd, which means the company has temporarily stopped operating.