MYAirline owner arrested, ops shut: Is there any room for damage control?

Following the news of suspension, more turbulence has hit Malaysian carrier MYAirline as major shareholders of the airline were arrested on suspicion of financial crimes. According to The Royal Malaysia Police, the airline’s co-founder and major shareholder, along with his wife and son were arrested to assist in a money laundering probe.

The airline was already in hot water as of 12 October 2023 as the Civil Aviation Authority of Malaysia (CAAM) also suspended MYAirline’s Air Operator Certificate (AOC) for a period of 90 days, effective 16 October 2023.

CAAM said that during a previous safety audit carried out on MYAirline from 29 May 2023 to 1 June 2023, CAAM did not find any indications of financial distress. CAAM also said that as part of the safety audit, AOC holders must provide evidence indicating financial solvency to CAAM and that to date, MYAirline had not submitted a notification on its financial issues to CAAM.

“The sudden suspension of MYAirline’s operation on 12 October 2023, without prior notification to CAAM; raises serious concern on public safety and the overall integrity of civil aviation operations in Malaysia,” added CAAM in a statement.

Don’t miss: MYAirline suspends ops due to financial pressures

At a press conference, Azharuddin A. Rahman, MYAirline’s interim accountable executive said, that the situation arose due to a lack of contingency plans along with last-minute investor withdrawals.

The abrupt suspension was out of concern for the safety of passengers and employees on the flight that operated from Wednesday night to early Thursday morning, with a suspension notice issued at 530 am on Thursday, 11 October 2023, he also explained.

"While we promptly cancelled the morning wave flights on Thursday, we acknowledge that some passengers on later flights were already at the airport, and this was an oversight on our part,” Azharuddin said.

As MYAirline handles the safety and technical side of its suspension, it also has to answer to its various stakeholders and customers who had to make alternative travel plans on short notice. In fact, the Malaysian Aviation Commission (MAVCOM) is holding MYAirline liable to refund consumers who have purchased tickets with the airline but are unable to travel which the airline has said it is expediting the process of.

Can the PR team do anything to aid the matter?

While A+M has reached out to MYAirline’s communications team, in a crisis which involves financial irregularities, arrests and safety, can communications really help? Or should they simply sit back and let legal take over?

Managing a closure becomes even more challenging when there may be fewer people left in a company to provide answers. David Ko, managing director, Ruder Finn Interactive Asia, said that a PR team could use social media channels as tools for virtual press conferences, pause unrelated campaigns and update copies on the website’s homepage in a resource crunch.

“The comms team should maintain control of the communication flow, assemble a team of key people from different departments, keep leadership involved, be reassuring and empathetic, and provide factual information as much as possible,” he added.

The role of the communications team is one that is pivotal in distilling, curating, and delivering updates accurately, transparently, and in a timely manner, according to Crystalbelle Lau, senior director at VoxEureka Malaysia.

The communications team must make critical judgements and adhere to integrity in the face of desperate decision-making temptations to control public narratives, especially at a time of heightened pressure when various stakeholders demand answers and resolutions, Lau said.

“In such cases, clear communication with the remaining staff and stakeholders becomes even more critical, and the PR team's ability to adapt and respond swiftly to evolving situations will be key to effectively navigating the closure process,” she said.

Leaving a positive legacy

Both Lau and Ko emphasise the role communications teams play in leaving a positive legacy on consumers and stakeholders in case the company wishes to relaunch.

“A good brand image can help the brand retain customer loyalty, protect its reputation, avoid legal issues, facilitate future opportunities, and leave a positive legacy. For example, a brand that closes with dignity and grace can still be remembered fondly by its customers and employees, and may even have a chance to revive or reinvent itself in the future,” Ko added.

Similarly, Lau says that longer-term strategies must be employed that priories public trust to safeguard the organisation's reputation along with any chances of recovery.

“The way a brand or company handles its closure determines its legacy. If handled with foresight and responsibility, the ripple effects of the brand's image can persist in the long run, affecting future opportunities, relationships, and the personal reputations of those involved,” said Lau.

Lau also warned that public confidence must be maintained even in the face of a shutdown as unethical or scrupulous leadership will not be forgotten even when involved individuals start new ventures or lead other companies.

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