Malaysia’s MAVCOM Suspends MYAirline’s License Amid Financial Turmoil

The Malaysian Aviation Commission (MAVCOM) has taken decisive action by suspending the air service license (ASL) of MYAirline (MYM) following the carrier’s failure to address concerns raised in a show-cause letter issued on October 13, 2023. This move comes three weeks after MYAirline ceased flight operations, creating a ripple effect in the aviation industry.

The suspension, effective from November 1, 2023, reflects MAVCOM’s commitment to passenger and employee welfare amid the challenges faced by the aviation industry post-COVID-19. Despite MYAirline’s management responding to the show-cause letter in late October, MAVCOM deemed the representations unsatisfactory, prompting the ASL suspension.

MYAirline’s troubles began in late 2021 when MAVCOM conditionally approved its ASL, valid from January 1, 2022, to December 31, 2022. The airline, which commenced operations in December 2022, later received a full ASL after passing fitness and proper person tests, demonstrating financial credibility, and meeting regulatory obligations. However, following its abrupt suspension of operations, MAVCOM initiated investigations into potential breaches of the ASL.

In a statement, MAVCOM highlighted its decision to safeguard the interests of affected passengers and employees, acknowledging the substantial number of passengers—over 117,000—who had purchased MYR22 million ringgits (USD4.65 million) worth of tickets through March 31, 2024. The agency expressed ongoing efforts to collaborate with Malaysia’s central bank to explore avenues for reimbursing affected passengers.

Simultaneously, the Civil Aviation Authority Malaysia (CAAM), responsible for issuing MYAirline’s air operator’s certificate (AOC), confirmed that multiple lessors have applied to deregister their aircraft from the Malaysian registry. MYAirline, which operated nine leased A320-200s, faces deregistration requests from lessors, including Aviation Capital Group, Genesis Aircraft Services, Avolon, Aircastle, Carlyle Aviation Partners, and SMBC Aviation Capital.

Investigations into the financial activities of MYAirline’s founder, Allan Goh Hwan Hu, remain active. Reports indicate that the Royal Malaysian Police is examining a potential MYR81 million (USD17.1 million) fraud related to an investment scheme run by i-Serve Online Mall Sdn Bhd (ISOM), of which Goh is a major shareholder. MYAirline’s collapse triggered police detentions of Goh and family members for questioning, and investigations into potential irregular funding links persist. The aviation industry in Malaysia remains on edge as authorities navigate the multifaceted challenges posed by MYAirline’s downfall.**