KUALA LUMPUR (Oct 16): Cash-strapped airline MYAirline Sdn Bhd's major shareholder Datuk Allan Goh Hwan Hua is willing to relinquish all his shareholding in the low-cost carrier, said interim accountable executive and director Datuk Seri Azharuddin Abdul Rahman.
"We are actively exploring strategic partnerships, having received several proposals. All these proposals are going through detailed evaluation and due diligence," Azharuddin told a press conference on Monday — the first since the airline announced a suspension of its operations last Thursday.
"The potential investors could be one or many. And depending on the deal, if they (potential investors) take a majority stake, then it is up to them what they want to do with the airline (such as maintain or change the low-cost carrier business model)," he said.
Latest records as at Aug 30, 2023 from the Companies Commission of Malaysia found that MYAirline had three shareholders, namely Zillion Wealth Bhd (99.25%), Trillion Cove Holdings Bhd (0.625%) and former MYAirline chief executive officer (CEO) Rayner Teo Kheng Hock (0.125%). Both Zillion Wealth and Trillion Cove named Goh as its director.
Asked for a timeline where it has to shut down the airline if negotiation fails, Azharuddin said: "We are not thinking about that. I am very positive that we will get back our licences."
"However, I cannot promise a timeline," he added.
The Civil Aviation Authority of Malaysia (CAAM) on Monday (Oct 16) suspended the air operator's certificate (AOC) of MYAirline for a period of 90 days, pending further investigations by the technical aviation regulator. Earlier, CAAM had received flak for granting MYAirline a two-year extension to its AOC, only to see the airline halt its operations three days later.
MYAirline's one-year air service licence (ASL) from the Malaysian Aviation Commission (Mavcom) is up for renewal on Nov 14. MYAirline requires both the ASL and AOC in order to operate a scheduled passenger and cargo airline business.
In the meantime, MYAirline has initiated a service recovery plan and business continuity plan under the leadership of Azharuddin and relevant department heads, with a focus on improvements and increased accountability.
"A reprioritisation of objectives will also be done and announced once recapitalisation is completed," Azharuddin said.
"It is important to note that discussions with lessors are ongoing to retain our aircraft," he added. MYAirline currently operates a fleet of nine Airbus A320s.
"We will continuously provide timely updates to our staff and media as development unfolds."
Azharuddin, who is a member of MYAirline's board of directors, said the board is still intact. Other board members are Goh, his son Sean Goh Tze Han, former Malaysia Airports Holdings Bhd chief operating officer Datuk Abd Hamid Mohd Ali, Teo and Trillion Cove director Jothi Prakash Murugan.
MYAirline's chief operating officer Stuart Cross, who had assumed the role of interim CEO on Oct 8 following the sudden departure of Teo from the airline citing health-related reasons, has resigned effective immediately.
Read also:
Affected passengers, staff will be repaid once funding is secured, says MYAirline's Azharuddin
Loke reminds MYAirline of its responsibilities to employees and passengers
Malaysia's civil aviation authority suspends MYAirline's air operator cert for 90 days, pending probe
May audit of MYAirline, October analysis by regulators did not show signs of financial issues — MOT
MYAirline suspends operations effective immediately until further notice
Who is the co-founder and major shareholder of MYAirline, which has suspended flights after 10 months?
Loke tells Mavcom to act after MYAirline goes off radar
Mavcom to probe complaints against MYAirline over unpaid staff payments, among others