Malaysian carrier MYAirline’s air service licence was suspended on November 1 by the Malaysian Aviation Commission due to financial issues, following the temporary suspension of the carrier’s Air Operators Certificate (AOC) on October 16 for 90 days. Lessors are reported to have reclaimed their aircraft from the troubled airline and moved to deregister them from the region, with half the fleet now at AirAsia.
MYAirline posted an operating loss of S$0.3 million on the back of SG$252.1 million revenue for the second quarter of its financial year 2024. On October 31, the airline stated that it was examining “over 15 proposals from potential investors, two of whom are in advanced stages of negotiations” to finance a recapitalisation package to revive operations. However, since the airline has now returned its fleet of 10 leased aircraft, doubts remain over how it will be able to secure lift to restart operations even if it secures additional capital.
Meanwhile, the speed of the airline’s collapse has alarmed regulators at the Malaysian Aviation Commission, which is reported to be reviewing conditions for granting licenses to new airlines, foremost ensuring more stringent assessments on conducted on the financial stability of new airline companies before they apply for an AOC.
The Airline Economics team is in Singapore this week for its Growth Frontiers conference at the Ritz Carlton Millenia. We will be reporting all news on and off the stage over the next two days as well as reporting the winners of the annual Airline Economics Aviation 100 Asia-Pacific awards.