MYAIRLINE Sdn Bhd has returned all 10 of its Airbus A320 aircraft to its lessors after suspending operations on October 12, the Business Times reported. 

It is said that the lessors had filed to deregister five of the A320s from the Civil Aviation Authority of Malaysia (CAAM) and another five had found a new lessee with AirAsia Bhd.

The business daily reported that CAAM had confirmed a request to deregister of five aircraft with the registration numbers 9M-DAC and 9M-DAD on Oct 26, 9M-DAJ and 9M-DAL on Oct 27 and 9M-DAH on November 3.

An airline insider said that there is competition between carriers for aircraft such as the A320.

“There is competition for planes. 

“The cost of renting (commercial) airplanes has also gone up, especially the ‘hot’ ones like the narrow-bodies. It is more expensive to lease today compared to a few years ago.”

MYAirline had leased 10 A320 aircraft from eight lessors: Aviation Capital Group LLC, AerCap Holdings NV, Aircastle Ltd, Avolon, Carlyle Aviation Partners, Genesis, Mizuho and SMBC Aviation Capital.

On November 1, the Malaysian Aviation Commission (Mavcom) announced the suspension of MYAirlines’ air service licence (ASL).

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

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

Mavcom said in a statement 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.

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

MYAirline 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.

Goh, his wife, his son, and several others have been arrested over the past two weeks. – November 6, 2023.