Loke vows swift action against MYAirline over sudden suspension

Transport minister blasts low-cost carrier for ‘irresponsible’ last-minute conduct affecting about 125,000 passengers

6:41 PM MYT

 

KUALA LUMPUR – Transport Minister Anthony Loke has directed the Malaysian Aviation Commission (Mavcom) to exhaust all available measures to hold MYAirline accountable for the low-cost carrier’s abrupt decision to suspend all its operations today.

Without mincing words, Loke admonished MYAirline for its “irresponsible” conduct, saying that the ministry was only notified of this action mere hours before it occurred.

“In our country, this incident marks an unprecedented occurrence. Never before has a commercial airline acted in such a manner,” he told a press conference held in the Dewan Rakyat today.

“I have tasked Mavcom with exploring every possible avenue for action against MYAirline. Such action must be taken.”

He added that Mavcom has also been asked to form a special task force with Bank Negara Malaysia to ensure the affected passengers can be issued refunds.

Loke also said that the ministry was “completely caught by surprise” as the airline did not mention a suspension in any meeting with Mavcom.

“Even worse, not even an official notification (was furnished) to Mavcom as of late last night. That is something very irresponsible and totally unacceptable.”

He also lambasted MYAirline for “vanishing” and leaving passengers confused at the airport, which he said had affected about 125,000 passengers – as the airline had sold tickets until March next year.

“(MYAirline’s) first responsibility is to the passengers. It has taken their payment, therefore it must provide a service.”

“If it cannot, then there must be a refund mechanism, a timeline, or a notice (in advance). Not like this, immediately ceasing operations at 6am and neglecting all passengers,” he said.

This morning, MYAirline announced the suspension of its operations effective today until further notice. The suspension is said to be due to significant financial pressures faced by the company.

In a separate statement, the company said it could not offer immediate assistance to its stranded passengers nationwide.

Yesterday, Loke said that the airline must reach out to Mavcom regarding any financial difficulties before the agency can provide any assistance. 

MYAirline was rumoured to be going through financial woes, with speculation surfacing after its chief executive Rayner Teo stepped down last Saturday, citing “health reasons”.

Several key management personnel also resigned from the company, including its chief financial officer and chief commercial officer.

Meanwhile, Malaysia Airports Holdings Bhd (MAHB) said MYAirline’s abrupt ceasing of operations has affected more than 5,000 passengers from local and international destinations, after the low-cost carrier called off a total of 40 flights today.

In a statement, MAHB confirmed the tally, saying that one of the 40 affected flights includes one departing for Don Mueang Airport in Bangkok. – October 12, 2023

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