KUALA LUMPUR- MYAirline (Z9), a Malaysian start-up, has unexpectedly ceased its operations indefinitely, just days after its founding CEO, Rayner Teo, stepped down.
The airline attributes this decision to “significant financial pressures” and a shareholder restructuring and recapitalization exercise.
MYAirline Ceased Operations
The low-cost carrier, which commenced its operations in December 2022, characterizes this as a “painful decision.” They expressed their efforts to explore partnerships and raise capital to avoid suspension but mentioned that time constraints left them with no other option.
According to reports from the Malaysian media outlet New Straits Times, MYAirline has faced financial difficulties recently. Inside sources reported that a prospective investor, expected to acquire a controlling stake, withdrew at the last minute, leading to the operational shutdown.
In their latest statement, MYAirline refrains from specifying when they might resume operations. They emphasize their commitment to working diligently to restart operations but cannot provide a definite timeline at this point.
This suspension occurred shortly after founding CEO Rayner Teo resigned, who cited health issues as the reason for stepping down.
House of Cards
Rayner Teo, a former executive at AirAsia, had been at the helm of the Kuala Lumpur-based low-cost carrier since its inception and throughout its launch in December 2022. Following Teo’s departure, the airline is currently under the temporary leadership of Stuart Cross, who serves as the interim CEO.
MYAirline has mentioned that it was in the advanced stages of discussions to secure new “strategic partnerships” aimed at fueling its future growth. The airline had also received a two-year extension to its air operator’s certificate on October 9.
Furthermore, the Malaysian Aviation Commission (MAVCOM) is conducting investigations into allegations that MYAirline had failed to fulfill its employee payment obligations.
The regulator has acknowledged MYAirline’s suspension and announced that it will provide further updates regarding the airline’s operations soon.
According to Cirium fleets data, MYAirline’s fleet consists of ten Airbus A320s equipped with CFM International CFM56 engines. Eight of these aircraft are currently in service, while two are in storage. The entire fleet is leased, and the average age of the aircraft is 14.4 years.
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