The Malaysian Aviation Commission (MAVCOM) has announced the suspension of MYAirlines' Air Service Licence (ASL). The decision was made after an investigation revealed that MYAirlines had failed to comply with certain safety regulations. MAVCOM has stated that the suspension will remain in place until MYAirlines demonstrates full compliance with all safety requirements. The commission has emphasized that safety is of utmost importance in the aviation industry and that all airlines must adhere to strict safety standards. MAVCOM will continue to monitor MYAirlines' compliance and will take appropriate action if necessary.
Background
Malaysian Aviation Commission (MAVCOM) has taken action against MYAirline (MYM, Kuala Lumpur Subang) by suspending its air service licence (ASL) due to the carrier's failure to address concerns raised in a show cause letter issued on October 13, 2023.
In late 2021, MAVCOM had granted conditional approval for MYAirline's ASL, which was valid from January 1, 2022, to December 31, 2022. After successfully passing fit and proper person tests, providing evidence of financial credibility, and meeting regulatory obligations, MYAirline was subsequently issued a full ASL. However, MAVCOM initiated an investigation into possible breaches of the ASL immediately after the carrier's collapse.
Suspension of ASL
The suspension of MYAirline's ASL came into effect on November 1, following the carrier's decision to halt flight operations three weeks earlier. MYAirline's management had responded to the show cause letter from MAVCOM, as well as a similar letter from the Civil Aviation Authority Malaysia (CAAM), in late October.
Passenger Impact
According to MAVCOM, over 117,000 passengers had purchased tickets worth MYR22 million ringgits (USD4.65 million) for flights until March 31, 2024. The agency is in discussions with Malaysia's central bank to explore options for reimbursing affected passengers, with nearly 60% of ticket purchases made through travel agents.
Aircraft Registry Removal
Meanwhile, CAAM, responsible for issuing MYAirline's air operator's certificate (AOC), has confirmed that multiple lessors have applied to remove their aircraft from the Malaysian registry. MYAirline had been operating nine leased A320-200s. On October 26, Aviation Capital Group applied to deregister 9M-DAC (msn 5661), while Genesis Aircraft Services applied to deregister 9M-DAD (msn 4098) on the same day. Avolon submitted applications on October 27 to deregister two of their aircraft, 9M-DAJ (msn 2968) and 9M-DAL (msn 4013). Aircastle, Carlyle Aviation Partners, and SMBC Aviation Capital also have aircraft placed with MYAirline, according to ch-aviation fleets advanced module.
Investigation into Founder's Financial Activities
Additionally, ongoing police investigations are examining the financial activities of MYAirline's founder, Allan Goh Hwan Hu. Reports from Malaysian business outlets suggest that the Royal Malaysian Police is investigating a potential fraud amounting to MYR81 million (USD17.1 million) related to an investment scheme operated by i-Serve Online Mall Sdn Bhd (ISOM), in which Goh is a major shareholder and alleged controller. ISOM has been the subject of multiple police investigations regarding potential fraud and money laundering offenses. Following the collapse of MYAirline, Goh and two of his immediate family members were detained for questioning but have since been released. Investigations into Goh, ISOM, and possible irregular funding links to MYAirline are ongoing.
(This article is sourced from Ch-Aviation.com and curated by Thetransporteronline24)
