MYAirline to submit written justification to MAVCOM, ASL to be evaluated

The Malaysian Aviation Commission (MAVCOM) has ordered MYAirline to submit a written justification for its failure to fulfil its Air Service Licence (ASL) conditions by 27 October 2023, according to a statement by MAVCOM.

In a show cause letter issued on 13 October 2023, MAVCOM included unsettled employee salaries and benefits as part of the airline’s failure to fulfil its ASL conditions.

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“Upon receiving MYAirline’s written representation, MAVCOM will evaluate whether MYAirline should continue as an ASL holder, or whether the ASL should be suspended or revoked pursuant to section 43(1) of the Malaysian Aviation Commission Act 2015 [Act 771],” it said. 

It added that additional updates would be made public within one week.

Additionally, MAVCOM said that it is further investigating MYAirline for other possible breaches of its ASL conditions.

“With regard to refunds to the impacted consumers, MAVCOM has also engaged various agencies, including Bank Negara Malaysia, to seek all possible avenues to refund affected consumers,” it added.

The commission has also set up a task force to “look into the affected passengers’ refunds and to provide recommendations on the way forward”. The task force includes representatives from MAVCOM, the Legal, Regulatory and Dispute Resolution Committee, and Consumer Protection Committee. At the same time, it will also review the framework for the ASL licensing approval framework for enhancement.

Investigators to the MYAirline case have also reportedly expanded the probe to look into other possible offences, such as money laundering and the abuse of investor funds. 

A report by The Star stated that investigators are looking into transactions involving several companies, such as i-Serve. Luxury cars, handbags, watches, and jewelry were reportedly among the items seized by the police in their probe.

The Commercial Crimes Investigation Department (CCID) is reportedly employing methods such as forensic accounting in the probe. It is urging all i-Serve investors to report their investments to the police to aid investigations, according to The Star.

The airline declined A+M's request for comment as police investigations are still underway.

A 26 October report by the Malay Mail also stated that four more individuals connected to i-Serve have been arrested. A+M has reached out to i-Serve for comment.

This news follows the airline’s suspension on 12 October 2023, and the subsequent arrest of its owner on 19 October on suspicion of financial crimes.

According to The Royal Malaysia Police, the airline’s co-founder and major shareholder, Datuk Allan Goh, along with his wife and son were arrested to assist in the money laundering probe.

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.

The Malaysian Aviation Commission (MAVCOM) is also holding MYAirline liable to refund consumers who have purchased tickets with the airline but are unable to travel.

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