Low-cost carrier MYAirline returns more than half of its fleet to lessors

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Malaysia’s MYAirline has been left with a fleet of just four aircraft after its lessors deregistered six of its Airbus A320s.

The low-cost carrier had a tumultuous few weeks starting October 12, 2023, when the company announced it would be suspending operations until further notice, citing “significant financial pressures.”

The airline acknowledged the “fiasco” created when passengers were left stranded at the airport without any assistance after their flights were canceled. MYAirline also said that it is unable to offer affected customers any immediate recovery options due to its financial struggles.

On October 17, 2023, MYAirline’s co-founder and majority shareholder Goh Hwan Hua was arrested, along with his wife and adult son, for violating Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act. 

According to a report by The Business Times, the airline’s interim CEO Stuart Cross resigned and eight of its aircraft lessors had asked MYAirline to return the Airbus A320s.

On November 1, 2023, The Malaysian Aviation Commission (Mavcom) suspended the Air Service License (ASL) of MYAirline after the airline failed to provide a satisfactory response to a show letter issued on October 13, 2023, in relation to its sudden suspension of operations.

The troubled airline issued its latest update on November 6, 2023, confirming six out of its 10 Airbus A320s had been deregistered by its lessors. 

“Four aircraft remain registered and continue to be managed by lessors and assisted by MYAirline’s Continuing Airworthiness Management Organization (CAMO),” the airline stated.

The airline also said that it is “actively engaged in discussions” with its lessors to retain the remaining aircraft once the company’s recapitalization process concludes.

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