INVESTORS would steer clear of MYAirline Sdn Bhd as its licence has been suspended, aviation analyst Shukor Yusof said.

Shukor told The Malaysian Insight that without an air service licence (ASL), it would be the end for the financially strapped airline.

“It is unlikely for any investor to be interested in an airline whose licence to fly has been revoked. No ASL means ‘game over’,” Shukor said.

Earlier this week, the Malaysian Aviation Commission (Mavcom) announced the suspension of MYAirline’s ASL.

Shukor said Mavcom’s decision was not a surprise as the commission had earlier questioned the carrier’s reasons for suspending its operations.

Mavcom issued a show-cause letter to MYAirline on October 13, ordering the low-cost carrier to provide its written representation within 14 days.

The letter highlighted MYAirline’s failure to comply with its ASL conditions and its sudden halt to operations on October 12.

Mavcom said in a statement on Wednesday that it received MYAirline’s written representation on October 27.

After reviewing it, Mavcom suspended the carrier’s ASL, saying the “representations were not satisfactory”.

MYAirline had been operating for less than a year.

In a statement, the airline said it made the “extremely painful decision” to halt services due to financial pressures pending shareholder restructuring and recapitalisation.

Around 117,000 passengers, with tickets worth RM22 million, were affected by the sudden suspension.

The airline’s co-founder Allan Goh Hwan Hua had been on the authorities’ radar for the past two years over dubious activities, including alleged scams and money laundering.

He, his wife, his son, and several others have been arrested over the past two weeks. – November 4, 2023.