CASH-STRAPPED MYAirline Sdn Bhd has announced that it is in discussions with two potential investors to secure a new deal, as the company faces financial difficulties.

MYAirline told The Malaysian Insight the company was at an “advanced stage” of completing the deal.

“Once the deal is done, the company will prioritise employees’ backdated salaries as well as our commitment to refund passengers due to the unforeseen circumstances,” the company said.

The company said it did not issue any termination letter to its staff.

“Close to 900 employees have not been paid for the last two months but no one has been served with a termination letter,” MYAirline said.

“Some have resigned for better offers from other companies.”

In an email to The Malaysian Insight on Monday, MYAirline said its licences were suspended and not cancelled.

The carrier said its Air Operator’s Certificate (AOC) and Air Service Licence (ASL) were not revoked.

“We would like to clarify that both of the licences required to operate an airline have only been suspended and not revoked as reported.

“MYAirline has not received any cancellation or stop-work demand by local regulators, and is currently wrapping up negotiations for reinvestment and the subsequent restart of its business,” it said.

Licences suspended

Last week, The Malaysian Insight reported investors would be wary of MYAirline as its ASL was suspended.

The Malaysian Aviation Commission (Mavcom) earlier announced the suspension of MYAirline’s ASL.

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

MYAirline said out of its original fleet of 10 aircraft, six planes have been deregistered by their lessors.

“This action is consistent with standard industry practices aimed at safeguarding lessors’ assets.

“Presently, four aircraft remain registered and continue to be managed by lessors and assisted by MYAirline’s Continuing Airworthiness Management Organization.

“It is important to note these aircraft have been under lessors’ control since October 13, 2023, and is not a recent development. Nevertheless, we are actively engaged in discussions with our lessors with the intention of retaining these aircraft once the recapitalisation process concludes,” the carrier said.

It was earlier reported MYAirline returned all 10 of its Airbus A320 aircraft to lessors after suspending its operations on October 12.

Lessors reportedly filed to deregister five of the A320s from the Civil Aviation Authority of Malaysia, with another five to be leased to AirAsia Bhd. – November 8, 2023.