Saturday 13 Apr 2024
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KUALA LUMPUR (Oct 16): The two-year extension of MYAirline Sdn Bhd’s air operator's certificate (AOC) by the Civil Aviation Authority of Malaysia (CAAM) earlier this month was based on a technical audit that was conducted by the CAAM on the aviation outfit in May, said Deputy Transport Minister Datuk Hasbi Habibollah.

An analysis was also conducted by the Malaysian Aviation Commission (Mavcom) as recently as Oct 3, during which MYAirline “did not show signs of financial issues that warranted the suspension of its operations”, Hasbi told a special chamber in the Dewan Rakyat on Monday.

MYAirline has 14 days (until this Tuesday) to make a representation to the authorities on the suspension of its operations, for which it had failed to provide early notification to the regulators.

This follows the show-cause letter issued by Mavcom last Friday to MYAirline. The shutdown of the local carrier is expected to affect 117,000 passengers, who have bought tickets for seven domestic and two international routes, according to Hasbi.

“Based on analysis conducted by Mavcom on MYAirline’s operations and financials on Oct 3, the aviation company did not show signs of financial issues that warranted the suspension of its operations.

“This can be seen from the minimal rescheduling of flights, and repayments to customers that were completed on time. Everything looked okay, everything was on time. MYAirline also had plans to expand its operations to 12 planes, from eight by end-2023,” Hasbi said.

MYAirline also informed the government that it was finalising a share sale to new investors locally and internationally, but this has not been concluded until now, according to Hasbi.

“After conducting a technical audit of the company from May 29 to June 1, the CAAM approved the AOC extension for MYAirline from October 2023 to September 2025.

"The technical audit was done meticulously and based on international standards,” Hasbi said, adding that the audit was done to assess the airline's capacity and efficiency in terms of commercial capabilities, operations, management and organisational systems, maintenance, safety, and cabin operations.

Financial aspect was also included as part of the audit process, he added.

Under existing regulations, passengers affected by flight cancellations must be refunded by the service provider within 30 days at the price purchased, including taxes and fees. MYAirline in its statements has committed to repaying its customers in stages.

Hasbi said an earlier assessment conducted in October 2022 found that MYAirline met the net positive equity position requirement that could support operations for three to six months.

The CAAM has suspended MYAirline’s AOC for 90 days effective from Monday, pending the outcome of further investigation.

For more Parliament stories, click here.

Edited ByTan Choe Choe
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