Founder of MYAirline Arrested as Malaysian Authorities Investigate Financial Turmoil
In a startling development, Goh Hwan Hu, co-founder and majority shareholder of MYAirline (MYM, Kuala Lumpur Subang), has been arrested alongside his wife and adult son. The arrests, made under Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act (2001), come in the wake of MYAirline’s sudden suspension of operations on October 12, citing financial difficulties. Goh, his wife Neow Ean Lee, and son Goh Tze Han have been remanded for four days to assist in an ongoing investigation.
While Malaysian authorities have not specified the alleged offenses or their connection to MYAirline, the trio’s arrest adds a layer of complexity to the low-cost carrier’s recent turmoil. Goh and his son serve on the MYAirline board, and the family has various business interests beyond the aviation sector. Jothi Prakash Murugan, a director at Trillion Cove, another firm associated with Goh, also holds a position on MYAirline’s board.
Goh’s private firms, Zillion Wealth and Trillion Cove Holdings, own a significant stake in MYAirline. Zillion Wealth controls 88%, while Trillion Cove owns 10%, leaving the remaining 2% with the now-former CEO, Raynor Teo. Trillion Cove was previously involved in a money laundering case, raising questions about financial dealings associated with the purchase of redeemable preference shares. Goh is also linked to a Malaysian payment gateway company under investigation for allegedly accepting deposits without proper licenses.
As MYAirline grapples with the aftermath of its operational halt, the Malaysian government has distanced itself from the carrier. Transport Minister Anthony Loke moved swiftly to suspend the airline’s operating licenses, and interim CEO Stuart Cross resigned. Lessors, including Aircastle, Aviation Capital Group, Avolon, Carlyle Aviation Partners, Genesis Leasing, Mizuho Leasing, and SMBC Aviation Capital, are eager to repossess their leased aircraft. Reports suggest that AirAsia Aviation Group CEO Bo Lingam has expressed interest in taking up to six A320s from MYAirline’s fleet.
Amid the chaos, Malaysian parliamentarians are calling for an inquiry into MYAirline’s shareholders and the approval process for its licenses. Deputy Transport Minister Hasbi Habibollah emphasized that government bailouts are not on the table, signaling a shift in policy. The situation continues to evolve, with the aviation community closely monitoring developments in this unfolding story of financial uncertainty and legal investigations.