Malaysian start-up MY Airline (IATA: Z9) has suspended operations today. The airline put up a notice on its website that it was suspending operations (temporarily) effective today. This comes amidst the turbulence in its top management with quick exits at CXO level over the last few weeks, citing one reason or another. The latest was the exit of its CEO Rayner Teo citing health condition. “The airline has come to this extremely painful decision because of significant financial pressures that have made it necessary to suspend operations pending the shareholder restructuring and recapitalization of the airline.” said the airline. “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.”, added the release.
The airline took to the skies in December 2022 and has a fleet of nine A320ceo aircraft configured with 180 mono class seating. Five out of these nine operated for the AirAsia group – a dominant player in the Malaysian market against which MY airline could not sustain. Just this week, the airline had received an extension for Air Operator Certificate for another two years from Civil Aviation Authority of Malaysia.
The airline tried mimicking Malaysian market leader AirAsia Bhd. in just about everything – meals, service, planes and routes – being present at KLIA 2, the hub of AirAsia. Even with an uptick in travel, the airline seems to have lost its race against the much larger, better capitalized and omnipresent AirAsia. Malaysian market may not be cut throat and much smaller but is largely driven by cost and divided into three – Malaysia Airlines on one side, AirAsia Bhd. on another and Batik Air Malaysia taking the space in between. The airline operated to ten destinations at the time of suspension, which included the two airports serving Bangkok.
Other airlines offer help
Batik Air – part of the Lion Air group has said that it would offer one-way fixed fare tickets to passengers stranded due to suspension of MY Airline. The fixed fare tickets are available on routes where MY airline operated and passengers have a proof of ticket.
AirAsia Bhd. has gone a step ahead and is welcoming staff members of MY Airline to apply for relevant roles in AirAsia. The airline is offering 50% off on base fare for passengers who are holding confirm tickets with MY airline and can produce that at AirAsia counters at the airport.
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