KUALA LUMPUR (Oct 16): The Civil Aviation Authority of Malaysia (CAAM) has suspended the air operator certificate (AOC) of MYAirline Sdn Bhd for 90 days from Monday, pending the authority's further investigations into the cash-strapped airline, which suddenly announced the halting of its operations last Thursday.
MYAirline's announcement had caught the aviation authority and the Malaysian government off guard as it came mere days after the airline had been granted an extension on its AOC last Monday to allow it to operate commercial passenger flights for another two years until 2025.
In a statement, CAAM said a safety audit was carried out on MYAirline from May 29 to June 1 this year for the airline's AOC renewal and that "at that time, there were no findings to indicate financial distress".
"Elements of the financial indicator checklist as per International Civil Aviation Organization (ICAO) Documents 8335 were included in the safety audit process. As part of the safety audit, AOC holders must also provide evidence indicating financial solvency to CAAM. This is to ensure the air operator has the financial resources to conduct its planned operations. Should a financial issue arise, a written notification to CAAM must be made immediately to ensure no compromise to the safety of operations. To date, MYAirline had not submitted such notification to CAAM," CAAM said.
"The sudden suspension of MYAirline’s operation on Oct 12, 2023, without prior notification to CAAM, raises serious concern on public safety and the overall integrity of civil aviation operations in Malaysia. A detailed safety audit will be carried out on MYAirline during this temporary suspension to reassess the airline’s capability," CAAM further said.
As the technical regulator of the Malaysian aviation industry, CAAM oversees the technical aspects of air operators to ensure that all universal safety and security standards are met. If standards are met, an AOC is issued to authorise an air operator to engage in specified aircraft operations.
Prior to an AOC issuance and renewal, key aspects that CAAM will assess include the capabilities of the air operator to conduct safe operations and whether it complies with the provisions of the operations' specification. A detailed safety audit is carried out to assess the capability and competency of the air operator in terms of commercial air transport, operations, and airworthiness.
"Any violations by AOC holders will be dealt with in accordance with Civil Aviation Regulations 2016 and Civil Aviation Directives (CAD). CAAM reminds all license holders to uphold their obligation to regulations and ensure strict compliance," CAAM added.
In a statement issued early Thursday morning, MYAirline said it had come to the "extremely painful decision" of halting its operations "because of significant financial pressures that have made it necessary to suspend operations pending the shareholder restructuring and recapitalisation of the airline".
"We have worked tirelessly to explore various partnership and capital raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative, but to take this decision," its board of directors said.
The board comprises MYAirline co-founder and major shareholder Datuk Allan Goh Hwan Hua, his son Sean Goh Tze Han, former Civil Aviation Department of Malaysia director general Datuk Seri Azharuddin Abdul Rahman, former Malaysia Airports Holdings Bhd chief operating officer Datuk Abd Hamid Mohd Ali, MYAirline co-founder and former chief executive officer Rayner Teo Kheng Hock, and Trillion Cove Holdings Bhd director Jothi Prakash Murugan.
It was reported that Teo, who had been leading the airline since its inception, stepped down on Oct 8, citing health considerations.
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