6-11-2023 (KUALA LUMPUR) Malaysia is set to reevaluate the conditions for granting licenses to new airlines following the abrupt suspension of services by a low-cost startup carrier due to financial difficulties.
Transport Minister Anthony Loke has called for stricter conditions and additional background checks to ascertain the “competency and financial strength” of companies seeking air service licenses. Loke’s statement came after Selangor-based MYAirline suspended its operations just 10 months after its launch, leading authorities to revoke its license and initiate a money laundering investigation against individuals associated with the airline.
The Business Times reported that MYAirline no longer has leases on its 10 Airbus SE A320 planes.
MYAirline is the second Malaysian startup airline to encounter problems shortly after commencing operations. In 2016, Rayani Air, a full-service carrier, operated for less than four months before facing technical issues, a pilot strike, and restructuring. The Malaysian authorities permanently revoked its license later that year.
Loke, however, emphasized the need for a balanced approach that encourages competition without stifling it. He stated, “The process has to be strengthened but not to the point where we immediately close our gate. Then you end up creating a ring fence for existing players, and no others will come in.”
Loke also raised concerns about the financial sustainability of airport operators in Malaysia as the country seeks to attract private sector investment to make its airports more commercially viable. Not all of the 39 airports operated by Malaysia’s main airport operator, Malaysia Airports Holdings, are commercially viable, with some requiring state funding, according to Loke.
Malaysia Airports is currently working on revamping the country’s primary terminal at the Kuala Lumpur International Airport, aiming to transform it into a hub through strategic partnerships and code-sharing agreements with regional airlines.
