SUBANG JAYA: MYAirline Sdn Bhd is adamant of retaining all nine of its Airbus A320s while waiting for a new white knight on swoop in and save it from a bleak future.
Its interim accountable executive Datuk Seri Azharuddin Abdul Rahman said the airline is discussing with its lessors to keep all of its narrow-body aircraft.
"In regards to the aircraft lessors, we are in talks with them to retain our aircraft," he told the media at MYAirline's press conference here today.
Interestingly, AirAsia Aviation Group Ltd group chief executive officer (CEO) Bo Lingam told Business Times earlier today that AirAsia Bhd is interested in leasing up to six out of nine A320s MYAirline is using.
He said the airline is talking to the lessors to determine the final number of the narrow-body aircraft that it will be taking.
"They (lessor) asked us last week if we're interested and we said yes. We'll confirm by next week on the number of A320s we'll be taking," Bo said, adding that AirAsia and MYAirline are leasing from the same aircraft leasing companies.
MYAirline is leasing the nine A320s from eight lessors. They are Aviation Capital Group LLC, AerCap Holdings NV, Aircastle Ltd, Avolon, Carlyle Aviation Partners, Genesis, Mizuho and SMBC Aviation Capital.
Each lessor is leasing one aircraft to MYAirline except Aircastle that leases two A320s.
Azharuddin said MYAirline did not expect the current mess as it was expecting to secure a new investment.
"We were let down by the 11th hour pullout by an investor," he said, without naming the interested party.
Asked if MYAirline will remain as a low-cost carrier (LCC) should it secure a new investor, Azharuddin said it is possible if the investor takes up a majority stake in the company.
"But we're good as an LCC. Our on-time performance is 90 per cent. Our load factor is over 90 per cent. We had good reviews. Passengers liked us until recently," he said, adding that it was normal for a start-up airline to take one to two years to be profitable.
Azharuddin also said MYAirline had set up a fund – Tabung Ehsan MYAirline – on Sunday where employees can donate to help the staff who are in need.
A total of 207 employees received RM100 each yesterday.
"Although it is small (amount) but I think it's meaningful for them. A total of 207 staff received the donation of RM100 each and the fund will be continued (for the time being)," Azharuddin said.
He added that MYAirline will clear its impending statutory payments and employees' September salaries to over 900 staff once it secures a new investment.
"We're constantly engaging with our staff via emails and town hall sessions."
"It's important to note that all staff are still under MYAirline employment and no one is placed under unpaid leave and no one has been terminated," Azharuddin said, adding that MYAirline has met with the Human Resource Ministry to update it on the salary payment.
In terms of airfare refunds, Azharuddin said so far MYAirline had received 18,000 emails from its affected passengers since the suspension of its flights on Thursday (Oct 12).
He said one of the airline's top priorities is to make the refund payments to its passengers as soon as it secures a new funding.