Malaysia’s MYAirline suspends operations, citing ‘significant financial pressures’

Malaysian start-up MYAirline abruptly suspended operations indefinitely – days after its founding CEO stepped down – as it cites “significant financial pressures”. The low-cost operator, which began operations in December 2022, says the “painful decision” comes amid a shareholder restructuring and recapitalisation exercise. “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,” states MYAirline. It was first reported in Malaysian media outlet New Straits Times that MYAirline - the country’s newest operator - has struggled financially in recent months. The paper also reported, citing inside sources, that a new investor who was meant to acquire a controlling stake had pulled out at the last minute, prompting the operational shutdown. In its latest statement, MYAirline declines to comment on when it can restart operations. It notes: “The board, shareholders and all of us at MYAirline will be working tirelessly to resume operations as quickly as possible but at this stage we are unable to commit to any timeline.” The suspension comes two days after founding chief Rayner Teo announced his resignation, citing health issues. Teo, a former AirAsia executive, headed the Kuala Lumpur-based low-cost carrier since its inception and through its launch in December 2022. The airline is currently helmed by operations chief Stuart Cross who is stepping in as interim CEO. At that time, MYAirline said it was in the final stage of discussions to secure new “strategic partnerships” for future growth. The airline had on 9 October also received a two-year extension of its air operator’s certificate. <br/>