KUALA LUMPUR (April 24): The Civil Aviation Authority of Malaysia (CAAM) has revoked the air operator's certificate (AOC) of cash-strapped low-cost carrier MYAirline Sdn Bhd, effective April 15, after it failed to find a new investor before the April 14 deadline.

This means MYAirline will have to reapply for the AOC and an air service licence (ASL) from the aviation regulators — the first from CAAM, the technical aviation regulator; the second from its economic aviation counterpart, the Malaysian Aviation Commission (Mavcom) — if it hopes to restart services. The process can be long and tedious.

On Oct 12 last year, MYAirline abruptly halted its operations citing financial pressures, less than a year after it began flying.

Both Mavcom and CAAM had maintained that there were no signs of financial and operational distress in MYAirline prior to the suspension. Just three days before the airline's decision to abruptly suspend its operations indefinitely, CAAM had even given the thumbs up to the airline’s air safety, security and operational proficiency for another two years.

A day after MYAirline's sudden decision, CAAM temporarily suspended its AOC for 90 days until Jan 16 this year. Since then, CAAM had extended the suspension period of the airline's AOC once — for another three months until April 14. MYAirline's ASL expired on Nov 14, 2023.

Airlines need both an ASL and AOC to operate scheduled air passenger and cargo services.

“There will be no more extension (of MYAirline’s AOC). Its AOC was revoked on April 15 under Regulation 193 of the Malaysian Civil Aviation Regulations 2016,” CAAM chief executive officer (CEO) Datuk Captain Norazman Mahmud told The Edge.

“However, it is keeping the required post holders for reapplication,” he added.

MYAirline's interim accountable executive is Datuk Seri Azharuddin Abdul Rahman, former director general of the Malaysian Civil Aviation Department and former chairman of CAAM.

Azharuddin is also a member of MYAirline's board of directors. The other board members are MYAirline co-founder and major shareholder Datuk Allan Goh Hwan Hua, his son Sean Goh Tze Han, former Malaysia Airports Holdings Bhd chief operating officer Datuk Abd Hamid Mohd Ali, MYAirline co-founder and former CEO Rayner Teo Kheng Hock, and Trillion Cove Holdings Bhd director Jothi Prakash Murugan.

Norazman also said the airline no longer has any aircraft registered with CAAM. A total of 10 aircraft were previously under MYAirline's management.

A MYAirline spokesman confirmed that CAAM had revoked the airline’s AOC on April 15. He said the airline still harbours hopes of securing a new investor to revive its operations.

“We are in talks with several interested investors. We are handling the staff issues internally. We will issue an announcement in due time,” the spokesman told The Edge.

Financial woes began to unfold last year due to a last minute withdrawal of a potential investor, prompting the operational shutdown. Some 125,000 passengers of MYAirline, who had purchased RM22 million worth of tickets for scheduled flights from Oct 12, 2023 until March 31, 2024, were left in a lurch subsequently. The welfare of its 900 employees were also affected.

In January, MYAirline was reported to have found a white knight “from the Middle East” to revive the low-cost carrier. The Bernama report, citing sources, said MYAirline had signed a sale and purchase agreement with a new investor in late December 2023. However, in February, the potential Middle Eastern investor had reportedly decided not to pursue its interest in the carrier.