MYAirline (Malaysia) announced the suspension of its operations until further notice on Thursday October 12 2023 due to significant financial pressures, pending the shareholder restructuring and recapitalisation of the airline.
The outcome was expected despite passenger numbers of 2m in its first year, as the airline had been actively seeking new investors, but its recent attempts had failed. In an effort to compete with established carriers like AirAsia, MYAirline had lowered prices and increased capacity, which negatively impacted its yields and profitability.
Despite launching some international routes, MYAirline faced difficulties with operations at multiple airports and encountered challenges in negotiating contracts for charter services to various countries. Although the airline achieved high seat load factors, it struggled to generate sufficient revenue due to the low fares offered.
The airline’s entry into the Malaysian market was challenging due to the dominance of major carriers like AirAsia and Malaysia Airlines. MYAirline tried to compete by targeting routes that were underserved or without direct competition, but it ultimately struggled to sustain profitability in the face of strong competition from AirAsia and others.
MYAirline, Malaysia’s newest airline, was established on January 11, 2021 and received an Air Service License (ASL) with Conditional Approval from MAVCOM on January 1, 2022, and an official ASL on November 15, 2022.
MYAirline operates a fleet of Airbus A320-200 aircraft from Kuala Lumpur International Airport Terminal 2 (KLIA2) and currently serves domestic destinations like Kota Kinabalu, Kuching, Kota Bharu, Langkawi, Penang, Sibu, Tawau, and Miri. They also have an intra-city route between Kota Kinabalu and Tawau. The airline plans to expand its route network in both Malaysia and neighbouring Southeast Asian countries.
The company’s overall operations and growth are overseen by its CEO and Director, Rayner Teo Kheng Hock. They currently employ 700.
MYAirline’s business model, which relied on competing with established carriers in a highly competitive market, proved unsustainable. Its inability to secure new investors, low yields, and challenges in route operations led to the suspension of its services.
