MAVCOM suspends MYAirline’s Air Service Licence

The Malaysian Aviation Commission (MAVCOM) has suspended MYAirline’s Air Service Licence (ASL). The suspension is effective immediately, it said in a statement. 

This follows the show cause letter issued by MAVCOM on 13 October 2023, in which it ordered the carrier to provide a written justification for its failure to fulfil the conditions of its ASL conditions as well as for its sudden suspension of operations on 12 October 2023.  

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“MAVCOM received MYAirline’s written representation on 27 October 2023. After reviewing the written representation, MAVCOM decided to suspend MYAirline’s ASL as the representations made by the airline are not satisfactory to the show cause letter,” the release read.  

“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,” said Saripuddin Kasim, executive chairman of MAVCOM. 

MAVCOM added that as the economic and commercial regulator of the Malaysian civil aviation industry, it made its decision with the aim to safeguard the interests of passengers and employees affected by the airline’s suspension of operations. It also took into account the challenges faced by the aviation industry in the wake of the COVID-19 pandemic. 

MAVCOM had issued a Conditional Approval (CA) for the ASL to the airline on 22 December 2021, effective from 1 January 2022 to 31 December 2022. As part of the Commission’s due processes, a CA for an ASL is required for any airline to apply for an Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM). 

Subsequently, MAVCOM granted a full ASL to the airline following its fulfillment of all ASL requirements and conditions set by the Commission, including its Fit and Proper criteria. During this period of assessment, MYAirline demonstrated that it had financial competence, and all its statutory declarations were found to be in order. 

MAVCOM stated in its release that MYAirline is “still liable to refund its affected passengers as per the Malaysian Aviation Consumer Protection Code 2016 (MACPC), even though its ASL has been suspended.” 

An estimated total of over 117,000 passengers have been affected by MYAirline’s sudden operational suspension. This amounts to a total value of over RM22 million in forward sales for scheduled flights from 12 October 2023 to 31 March 2024.  

A majority of the forward sales are from travel agencies (58%), followed by 41.8% from payments made by credit or debit cards. MAVCOM indicated that it will continue to engage with Bank Negara Malaysia in finding recourse for affected passengers to obtain refunds for unfulfilled bookings.  

“MAVCOM’s Task Force has been mandated to look into the affected passengers’ refunds and to provide recommendations on the way forward,” it added. “This may potentially include refining or expanding the mechanism for aviation consumer protection.” 

As for its licensing approval framework, MAVCOM said that while it is comprehensive, the Task Force will be reviewing it for enhancement. The framework applies to all new and existing license holders.  

“This decision is in line with MAVCOM’s functions which include, among others, to provide a mechanism for aviation passengers’ protection and promote timely investments in the civil aviation industry to meet Malaysia’s evolving demand and development needs,” said Saripuddin. 

“Hence, MAVCOM’s role requires a balancing act for commercial activity to promote the sustainability and progress of the industry, while ensuring passengers are protected.” 

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