In a new development, the Malaysian Aviation Commission or MAVCOM has officially suspend the Air Service License (ASL) of MyArline effective immediately. This is based on a press release that MAVCOM sent out yesterday evening.
In Malaysia you need two licenses to run an airline – the ASL from MAVCOM and Air Operating Certificate (AOC) from the Civil Authority of Malaysia (CAAM). The latter was suspended on 16 October for 90 days, as CAAM starts an investigation into MYAirline.
In the press release, MAVCOM said that they provided a show cause letter to MYAirline and ordered that the airline send in a written representation within 14 days. While MYAirline sent in the reply on 27 October, MAVCOM deemed that the response was no satisfactory and went ahead suspended the ASL for MYAirline.
According to Datuk Seri Hj. Saripuddin Hj. Kasim, the executive chairman of MAVCOM, “Although the revocation of MYAirline’s ASL was highly considered, the potential implication of that could result in halting efforts in initiating refund payments to the affected passengers.”
In a nutshell, MAVCOM did not cancel the ASL so that MYAirline can continue the process to refund passengers their money.
In a response, MYAirline sent out a statement via their official Facebook page before the official suspension of the ASL, where they said that they are currently working on securing investors as they have received over 15 proposals from potential investors. The company also has received over 30,000 calls and emails so far, and the company will be processing the refunds for those passengers.
According to MAVCOM, there are over 117,000 estimated passengers affected by the suspension on 12 October, with a total value of RM 22 Million of forward sales that the company will need to refund to passengers. Interestingly, about 58% of the sales are from travel agencies while 41.8% are direct purchases from customers.
In other news, one of the MYAirline co-owner was recently arrested by the police on charges of money laundering .
[SOURCE]
