KUALA LUMPUR: Cash strapped MYAirline Sdn Bhd's fate could be sealed in two or three weeks time should it not be able to secure an investor by then.
"There isn't much time left (for MYAirline). How long will this linger? This can't continue for long," sources told Business Times.
MYAirline major shareholder Datuk Allan Goh Hwan Hua was arrested on Tuesday, October 17, 2023 and remanded for four days. He is being investigated under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Goh was actively in search of a new investor to jump start the airline which is in dire need of funds.
MYAirline's official declined to comment, when reached.
Business Times has learnt that MYAirline has yet to finalise any concrete deals with any party or parties although it has received interest from several parties.
"Without the AOC, ASL and the planes, why should anyone invest (in the airline)?" a source said, adding that a new investor would have to pump in millions to revive the carrier's daily flight operations.
The investor would need to refund the affected passengers, estimated to be some RM20 million as well as pay the backdated staff their September salary as well as MYAirline's services providers.
Industry insiders added that MYAirline has lost its value following a suspension of its air operator certificate (AOC) and the lack of a renewed air service license (ASL) and is soon to be fleet-less as its airplanes would have to be returned to the lessors.
Malaysian-based scheduled commercial air operators are required to have both the AOC and ASL.
The AOC is issued by the Civil Aviation Authority of Malaysia (CAAM) and the ASL by Malaysian Aviation Commission (Mavcom).
CAAM suspended MYAirline's AOC on Monday (Oct 16) for 90 days pending investigation.
Business Times had reported on Oct 16, 2023 that MYAirline's eight aircraft lessors are believed to have asked the carrier to return their aircraft.
The lessors are Aviation Capital Group LLC, AerCap Holdings NV, Aircastle Ltd, Avolon, Carlyle Aviation Partners, Genesis, Mizuho and SMBC Aviation Capital.
On Oct 16, 2023 MYAirline's interim accountable executive Datuk Seri Azharuddin Abdul Rahman said the carrier might change its business model if a new majority shareholder decides so. "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 is normal for a start-up airline to take one or two years to be profitable.
Azharuddin also said MYAirline will clear its pending statutory payments and employees' September salaries to over 900 staff as well as refund to affected passengers once it secures a new investment.