MYAirline Commits to Settle Overdue Salaries Amid Insolvency Challenges

Malaysia’s MYAirline (MYM), currently navigating insolvency, has reached an agreement to pay MYR 4.3 million ringgits (USD 917,900) in overdue salaries to 158 employees. The resolution, secured by Malaysia’s Labour Department on behalf of the employees’ union, comes as the carrier grapples with financial turmoil. Payments are scheduled to commence in January, contingent upon MYAirline securing fresh investment.

Having ceased operations in early October, MYAirline faced scrutiny for unpaid salaries during September and October, as reported by the Malay Mail outlet. The Malaysian Trade Union Congress (MTUC), representing the affected 158 employees, lodged a claim with the Department of Labour, prompting the department to order the airline to settle the outstanding salaries, some dating back five months.

MTUC General Secretary Kamarul Baharim expressed reservations about MYAirline’s ability to honor the agreement, stating, “Waiting for investors is not an acceptable course of action. However, we are concerned about the situation of the employees. What if new investors don’t come forward?”

Despite ongoing talks with potential investors, MYAirline faces challenges, with six out of its ten A320-200s repossessed by lessors earlier this month. The remaining aircraft remain registered and under lessor management, assisted by MYAirline’s Continuing Airworthiness Management Organization (CAMO). Furthermore, government agencies have suspended MYAirline’s air services license and air operator’s certificate.

The commitment to address overdue salaries signals a potential step towards stabilizing MYAirline’s situation, although the reliance on securing fresh investment adds an element of uncertainty to the airline’s future.