No News Is Bad News
A picture is worth a thousand words! Passengers waiting to board a MyAirline air craft but, where’s the plane?
Act now against MyAirline, what is the Govt waiting for?
UPDATE1:
No findings to indicate financial distress in MYAirline during audit, says CAAM
MYAirline abruptly suspended operations because of “severe financial challenges” on Oct 12, with CAAM then facing criticism for extending MYAirline’s AOC for two years on Oct 9.
FMT Reporters - 16 Oct 2023, 1:11pm
CAAM has been criticised for extending MYAirline’s AOC for two years on Oct 9, three days prior to its abrupt halt in operations. (CAAM pic)
PETALING JAYA: A four-day safety audit on MYAirline earlier this year uncovered no signs of financial distress, said the Civil Aviation Authority of Malaysia (CAAM).
The aviation regulator today announced that it has suspended MYAirline’s air operator certificate (AOC) effective immediately for a period of 90 days pending further investigations.
MYAirline suspended operations because of “severe financial challenges” on Oct 12, with about 125,000 passengers nationwide estimated to be affected by the suspension.
While CAAM has been criticised for extending MYAirline’s AOC for two years on Oct 9, three days prior to its abrupt halt in operations, CAAM today said that there were “no findings to indicate financial distress” during the safety audit carried out on MYAirline from May 29-June 1 for their AOC renewal.
KUALA LUMPUR, Oct 16, 2023: The Social Security Organisation (Socso) will come to the aid of more than 500 MYAirline staff who have been affected by the abrupt suspension of the carrier’s operations, says Human Resources Minister V Sivakumar.
“My ministry has been keeping an eye on developments in the airline to safeguard the welfare of workers,” he added.
Enough of typical lip services as spewed by past politicians in the failed Barisan Nasional (BN) government.
Keeping an eye on this and that, assuring this and that, action will be taken, etc have all been parroted by politicians but it all amounts to NATO (No Action Talk Only).
No News Is Bad News reiterates: Act immediately, rope in MyAirline top management and its shareholders before they flee!
Socso to aid MYAirline staff as some claim not paid since August
Human resources minister V Sivakumar says his ministry has been keeping an eye on developments in the airline to safeguard the welfare of workers.
Nora Mahpar - 15 Oct 2023, 7:56pm
MYAirline staff have alleged that September salaries and several months’ contributions to Socso and EPF have not been paid. (Bernama pic)
PETALING JAYA: The Social Security Organisation (Socso) will come to the aid of more than 500 MYAirline staff who have been affected by the abrupt suspension of the carrier’s operations, says human resources minister V Sivakumar.
This comes amid claims by some MYAirline employees that they have yet to be paid their September wages and that employer contributions to Socso and EPF have not been made since May.
Sivakumar said his ministry has been keeping an eye on developments in the airline to safeguard the welfare of workers.
He said any MYAirline staff who was laid off will be entitled to a job search allowance from Socso for three to six months while they seek new employment.
“The allowance will be given as long as they fulfil the criteria, based on checks on their record in the Employment Insurance System,” he said, adding that these workers may also join upskilling courses. They will also be informed about job opportunities and may receive career counselling.
However, Sivakumar did not comment on the claims of unpaid wages and backdated Socso and EPF contributions.
Several MYAirline employees told FMT that their salary for September should have been paid by Oct 7 at the latest and that this has severely affected their finances. They also claimed that Socso and EPF contributions have not been made since May despite deductions continuing.
Speaking on condition of anonymity, they said they were just as shocked by the airline’s suspension of its operations, having only been informed on the matter at around 5am on Thursday itself.
FMT has sought comment from MYAirline officials.
Yesterday, MYAirline director Azharuddin Abdul Rahman said all staff remain under full employment and that no employee has been made to take unpaid leave.
It is understood that all staff members have been told to come into office as usual tomorrow.
Thursday, 12 October 2023
Stop wasting time, clampdown on MyAirline
No News Is Bad News
Stop wasting time, clampdown on MyAirline
UPDATE3:
Did MYAirline meet criteria for Air Operators Certificate extension?
The sudden suspension of the carrier’s operations raises questions on the regulatory bodies and governance of the aviation industry in Malaysia.
Letter to the Editor - 14 Oct 2023, 2:30pm
From Anton Ambrose
The MYAirline imbroglio, the latest blip on Malaysia’s aviation radar, raises a host of uncomfortable questions and places the nation in the undesirable but all too familiar position of being the industry’s laughing stock.
The incident has shone a glaring spotlight on the questionable issuance of Air Operators Certificates (AOCs) and casts a shadow over Malaysia’s aviation governance.
MYAirline’s promising ascent and equally quick hard landing in Malaysia’s aviation market has left both the industry and the nation frustrated after the early hype and promise.
This debacle is not just about an airline’s misadventures, but also about the regulatory bodies and governance that should have prevented such a mess in the first place.
The fact that Malaysia, with its 33 million population, has doled out 27 AOCs is a mind-boggling puzzle. This ludicrous number doesn’t add up and leaves industry experts scratching their heads in disbelief.
To gain an AOC from the Civil Aviation Authority of Malaysia (CAAM) and subsequently an Air Services Licence (ASL) from the Malaysian Aviation Commission (Mavcom), a company must demonstrate its financial strength and projections for the next five years.
One can only wonder whether MYAirline, which recently had its AOC extended by two years, met these requirements.
Transparency and accountability should be the cornerstones of any effective regulatory system. However, in the case of MYAirline, the lack of transparency surrounding its licensing and oversight raises serious concerns about CAAM.
CAAM and transport minister Loke Siew Fook must provide answers as to why this happened instead of putting on a theatre production of feigned indignation.
Pretending to be outraged while calling an airline irresponsible doesn’t cut it. Malaysians deserve clarity.
The larger issue at hand is why AOCs appear to be distributed like cotton candy at a carnival, particularly to financially frail companies or ones with no proven track record in aviation.
The process that allowed MYAirline to take flight exposes a regulatory framework in dire need of reform. The role of agencies under the transport ministry in scrutinising and granting licences must undergo thorough examination, particularly when passenger safety is on the line.
The MYAirline fiasco underscores the urgent need for an overhaul of Malaysia’s aviation governance. To restore trust and secure the future of the aviation industry, bold measures are required.
The CAAM must undergo a rigorous audit, revamp its approval processes, incorporate rigorous scrutiny and eliminate conflicts of interest, thus ensuring complete transparency and adherence to international industry standards.
Transparency and accountability should extend to the public, ensuring that citizens are informed about the aviation industry’s inner workings and the measures in place to protect their interests.
An independent, authoritative body with a stronger bite akin to Australia’s Transport Safety Bureau (ATSB) and Civil Aviation Safety Authority (Casa) must be empowered to monitor and enforce compliance without any kind of interference.
The MYAirline fiasco should not be viewed as a mere blemish on Malaysia’s aviation industry but as a pivotal moment for change. The nation’s response to these failures will determine the future of aviation governance.
While the path forward will be challenging, reform, transparency, and a renewed commitment to comply with the letter of the law are non-negotiable if Malaysia aims to reclaim its position in the aviation world.
Malaysia must either rise to the occasion or risk being forever grounded in the boondocks of aviation.
Anton Ambrose is a former senior airline executive and an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of FMT.
UPDATE2:
Who is the co-founder and major shareholder of MYAirline, which has suspended flights after 10 months?
By Kang Siew Li / theedgemalaysia.com
12 Oct 2023, 11:28 amUpdated - 13 Oct 2023 11:09 am
MYAirline announced on Thursday that it is suspending its flight operations effective immediately until further notice, citing 'significant financial pressures'.
Note: The article has been amended to take into account the preference shares issued by the company which was omitted in the earlier version. The error is regretted.
KUALA LUMPUR (Oct 12): Low-cost carrier MYAirline Sdn Bhd was seen as a promising airline, filling the void left by incumbent players which were forced to quickly shrink, cut routes and ground hundreds of planes during the Covid-19 pandemic. Starting with three Airbus A320s in December 2022, it had outlined ambitious plans to grow its fleet to more than 50 planes in five years.
Fast forward 10 months, MYAirline announced on Thursday that it is suspending its flight operations effective immediately until further notice, citing "significant financial pressures". More importantly, this is the first time that it publicly acknowledged that it was cash-strapped amid rumours in recent weeks that MYAirline was in serious financial trouble over allegations of unpaid staff wages, late payment of services providers' dues, and difficulty in raising funds for new aircraft leases.
Who are the people behind MYAirline?
Companies Commission of Malaysia (SSM) data showed that its director and businessman Datuk Allan Goh Hwan Hua is the airline's single largest shareholder.
SSM data previously showed that international trade consultant Zillion Wealth Bhd has an 88% equity interest in MYAirline and Trillion Cove Holdings Bhd, a money lending and financing company, a 10% stake. Both Zillion Wealth and Trillion Cove named Goh as a director of the companies.
The airline's former chief executive officer (CEO) Rayner Teo Kheng Hock, meanwhile, had owned the remaining 2% of the airline’s shares.
It is worth noting that in May this year, Trillion Cove was involved in a money laundering case where former Malaysia Automotive Robotics and IoT Institute (MARii) CEO Datuk Mohamad Madani Sahari was charged with 12 counts of money laundering totalling RM1.038 million at the Alor Setar Sessions Court in Kedah. Madani has pleaded not guilty to all of the charges.
For the first 10 charges, Madani was reportedly charged with indirectly engaging in transactions involving proceeds of unlawful activities through his lawyers, Norizan & Associates's Hong Leong Islamic Bank account, amounting to RM1 million.
As for the remaining charges, Madani was accused of receiving fees through illegal transactions amounting to RM19,000 from Trillion Cove, on each charge, accrued from the purchase of RM1 million worth of Redeemable Preference Shares-i.
Meanwhile, Goh is also linked to payment gateway company i-Serve Online Mall Sdn Bhd, one of seven companies that were compounded a total of RM50 million by Bank Negara Malaysia (BNM) last month, for accepting deposits without a licence. BNM had said that its investigation revealed that between June 2018 and September 2021, the seven entities had accepted deposits from the public and had consequentially engaged directly in transactions that involved proceeds of such illegal deposit-taking activities.
SSM data revealed that Goh held a 31.75% stake in i-Serve Online Mall as at Sept 13, 2023. The other three shareholders were Datuk Seri Dr Mohd Khairi Aseh (31.75%), QA Advance Partnership PLT (20.63%) and Bong Soon Heng (15.87%).
Shareholding changes at MYAirline
Latest records as at Aug 30, 2023 from SSM found that MYAirline now has 15 shareholders, following the issuance of 48 million preference shares.
The number of ordinary shares had also been increased to 32 million from 2 million previously.
The additional 30 million ordinary shares were allotted to Zillion Wealth, bringing its shareholding in MYAirline to 99.25% or 31.76 million shares from 88% or 1.76 million shares previously. Consequently, Trillion Cove's stake had been reduced to 0.625% from 10%, even though the number of ordinary shares it owned remain at 200,000. Goh also holds 750,000 preference shares in MYAirline.
Likewise, Teo's shareholding is now down to 0.125% from 2%, with a total of 40,000 ordinary shares.
The other shareholders allocated preference shares included Lee Siew Hock, Nawal Aeida Asarudin, DAG Express Sdn Bhd, Jalex Sdn Bhd, Ling Ai Lee and Kek Kim Long.
It is worth noting that as at Oct 10, 2023, Zillion Wealth is equally owned by Goh's wife Datin Neow Ean Lee and their son Sean Goh Tze Han, who is a board member of MYAirline. Over at Trillion Cove, Goh owned a 99% stake or 1.98 million ordinary shares, while Florence Anak Juan has an 1% stake or 19,990 ordinary shares in the company, SSM filing showed.
On Sunday (Oct 8), MYAirline announced that it was "in advanced stages of finalising strategic partnerships" amid talks at the time that the carrier was already facing a financial crunch.
On Thursday, Malaysian Aviation Commission (Mavcom), which regulates economic and commercial matters relating to civil aviation, said it is currently investigating the airline based on internal reviews and complaints received regarding the airline’s unpaid statutory payments to its employees, among others.
UPDATE1:
EXACTLY!!!
Heads must roll over MYAirline’s shock suspension, says aviation analyst
Shukor Yusof says regulators must take responsibility and explain why they allowed the airline to operate.
'Ainin Wan Salleh - 13 Oct 2023, 10:30am
MYAirline suspended operations abruptly on Thursday, leaving its passengers stranded. (Bernama pic)
PETALING JAYA: An aviation analyst says Putrajaya must be held accountable over troubled carrier MYAirline Sdn Bhd’s abrupt suspension of its operations on Thursday, which left more than 5,000 passengers in the lurch.
Shukor Yusof, founder of aviation consultancy Endau Analytics, said the regulators must take responsibility and explain why they allowed the airline to operate.
“The government must bear full responsibility as, ultimately, government agencies Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) are the regulators. Heads must roll,” he told FMT.
On Thursday, MYAirline suspended its operations immediately, citing “severe financial challenges”.
In an internal email sighted by FMT, the airline said it had “explored all avenues for potential partnerships and capital raising exercises” to rescue the airline, but ultimately ran out of time.
Mavcom said MYAirline had to refund all affected customers and stop accepting bookings until further notice.
Transport expert Wan Agyl Wan Hassan said if there were signs that MYAirline was not sustainable and these were overlooked, then questions needed to be raised.
“While no regulatory process can guarantee any airline’s success, it is crucial to ensure that the due diligence was indeed thorough and that all potential risks were adequately assessed,” said the managing partner of transport consultancy Agyl & Partners.
Wan Agyl also said MYAirline’s predicament showed a need for regular monitoring where the authorities should periodically assess airlines’ financial and operational health to identify issues before they escalate.
He said Putrajaya must establish clear exit protocols, including guidelines on how airlines should cease operations, to minimise disruptions to passengers and the supply chain involved.
Shukor, on the other hand, said the government must take a “laissez-faire” approach in regulating the aviation market, but it needed to have a firmer grip on “regulating the regulators”.
Transport minister Loke Siew Fook slammed MYAirline’s decision to suspend its operations abruptly, calling the low-cost carrier’s actions “irresponsible”.
He said his ministry and Mavcom were caught by surprise by the airline’s decision as no prior notice had been given to them.
Stating that it was the first time a local airline had suspended its operations in such a hasty manner, Loke said he was concerned that it would put the country in a bad light, especially among foreign travellers.
Wan Agyl said as long as the regulatory bodies address the situation transparently and take steps to prevent similar issues in the future, the impact on overall confidence in Malaysia’s aviation sector could be mitigated.
UPDATE2:
MYAirline customers: know your rights
Passengers affected by the sudden suspension of operations can seek compensation, says lawyer.
Naveen Prabu - 13 Oct 2023, 9:00am
Passengers were left in the lurch after MYAirline suspended operations. (Facebook pic)
PETALING JAYA: MYAirline’s suspension of operations from Oct 12 has left passengers in the lurch and wondering how they can seek compensation.
The Malaysian Aviation Commission (Mavcom) said in a statement it has directed the airline to cease all transactions on its booking platforms until further notice.
Mavcom also said MYAirline is obliged to assume responsibility and provide refunds to customers who had booked its flights but are now unable to travel following the suspension of operations.
Lawyer Rajesh Nagarajan said barring “extraordinary circumstances” such as security risks or severe weather conditions, passengers have the right to request compensation for cancelled flights.
“If they feel they have not received adequate compensation, they can make a formal complaint with the airline responsible for the flight before reaching out to Mavcom,” Rajesh told FMT.
He said compensation extends to damages incurred when an airline suspends operations.
“Once a passenger makes a payment for an airline ticket, it establishes a contractual agreement between the passenger and the airline.
“The passenger’s rights are outlined in the Malaysian Aviation Consumer Protection Code 2016, established under the Malaysian Aviation Commission Act 2015,” he said.
Rajesh said that beyond ticket refunds, passengers may pursue compensation for inconvenience, additional expenses, or losses incurred due to the cancellation.
“An aggrieved passenger has the legal right to seek compensation or reimbursement for the non-refundable bookings, such as for hotels, concerts, or other activities that were affected,” he said.
The statute of limitations for a compensation claim is six years from the date the cause of action originated.
This time limit applies specifically to cases related to contracts, such as airline ticket purchases, Rajesh said.
“Individual claims of RM5,000 or less can be brought to the small claims court. The magistrate’s court handles civil claims of up to RM100,000.
“For civil claims of up to RM1 million, the appropriate venue is the sessions court,” he said.
Rajesh also said there should be additional preventive measures and legal changes to better protect passengers in future.
“Mavcom should introduce a requirement for airlines to pay it a substantial safety deposit, which would serve as a financial security net for passengers affected by flight suspensions,” he said.
KUALA LUMPUR, Oct 12, 2023: Can the Government be so naive as to believe MYAirline’s assurance that it will fulfil its obligations to refund consumers once they secure the necessary funding.
Transport Minister Loke Siew Fook said 125,000 consumers had bought RM20 million worth of tickets up to March.
He also said: “MYAirline just disappeared. They stopped their operations, and not only were their planes not flying, but their staff were also nowhere to be found at the airport.
“There were no representatives at all (at the airport). (This is) irresponsible behaviour.”
Mr Loke! Stop paying lip service, mobilise immediate action with relevant enforcement authorities to detain all the key management staff and the company directors.
The matter is nothing short of a “scam”, running away with consumers’ RM20 million!
And: “… MYAirline’s assurance that it will fulfil its obligations to refund consumers once they secure the necessary funding.” (What the f..k is this?)
So, if they are unable to secure funding, consumers will never, ever, get their refund?
The Government must be held responsible and accountable for the “scam” as it gave the licence to the airline. And, who are the directors?
Questions aplenty, but Loke’s response to the “scam” is akin to dragging the feet, instead of rounding up the MyAirline culprits for questioning, and perhaps face criminal charges.
Is the Government waiting for the culprits to flee, and like previous incidents, consumers are left in the lurch.
No News Is Bad News reproduces below a news report that is akin to the Government dragging its feet on the matter:
MYAirline just ‘disappeared’, says Loke
Earlier today, MYAirline said it had to suspend its operations immediately because of significant financial pressures.
Shahrul Shahabudin - 12 Oct 2023, 6:36pm
MYAirline’s decision to suspend operations today has affected 125,000 of its passengers, said transport minister Loke Siew Fook. (JohnShen Lee pic)
KUALA LUMPUR: Transport minister Loke Siew Fook has criticised MYAirline’s decision to suspend its operations earlier today, calling the low-cost carrier’s actions “irresponsible” and “unacceptable”.
He said the transport ministry and Malaysian Aviation Commission (Mavcom) were caught by surprise with the “abrupt” decision as they were not given any prior notice.
Loke said the suspension has affected 125,000 MYAirline passengers who had already purchased RM20 million worth of tickets until March 2024.
“MYAirline just disappeared. They stopped their operations, and not only were their planes not flying, but their staff were also nowhere to be found at the airport.
“There were no representatives at all (at the airport). (This is) irresponsible behaviour,” Loke said at a press conference in Parliament.
Earlier today, MYAirline said it had to suspend its operations immediately because of significant financial pressures.
Calling the decision “extremely painful”, it added that it had no timeline on resuming operations – which was dependent on shareholder restructuring and recapitalisation of the airline.
‘MYAirline will fulfil obligations’
Numerous passengers have taken to social media to express their shock and disgruntlement following the news of MYAirline’s suspension, especially as many only found out about it when they were already at the airports.
Loke stressed that the transport ministry was “deeply concerned” about the suspension and it was monitoring the situation through Mavcom to ensure that MYAirline addressed all complaints and issues raised by affected passengers.
“MYAirline has assured Mavcom that it will fulfil its obligations to affected passengers and will provide refunds to consumers once they secure the necessary funding,” he said.
Stating that today’s incident was the first time a local airline had suspended its operations in such a hasty manner, Loke said he was concerned it would put the country in a bad light – especially among foreign travellers.
Loke also said he had instructed Mavcom to look at any possible action to be taken against MYAirline, adding that Mavcom would set up a task force to identify ways to reimburse passengers.
He said this would be done with the assistance of Bank Negara Malaysia.
MYAirline, which got off the ground last December, operated eight aircraft and had plans to expand its operations to 12 aircraft by the end of this year.
The airline has approximately 900 employees and used to fly from KLIA Terminal 2 to eight domestic destinations (Penang, Kota Bharu, Langkawi, Kota Kinabalu, Sibu, Tawau, Kuching, and Miri) and one international destination (Bangkok).
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