According to Cash-strapped Malaysian budget airline abruptly halts operations | Inquirer Business, a Malaysian low-cost airline unexpectedly halted operations on October 12, leaving hundreds of customers stranded and claiming financial concerns.
With nine aircraft, MYAirline flies largely local flights. The airline apologized on social media for the incredibly difficult choice and announced that operations will be suspended until further notice.
According to the board of directors of the airline, MYAirline has worked extremely hard to investigate several partnering and capital raising possibilities in order to avoid this suspension.
Although it did not specify when flights will restart, the airline stated that the suspension will allow for the resolution of a shareholder reorganization and recapitalization.
According to Cash-strapped Malaysian budget airline abruptly halts operations | Inquirer Business, flights to domestic routes and Bangkok, the capital of Thailand, were started by the airline in December.
The news that was made early on Thursday, first on Facebook and subsequently on other social media, left dozens of travelers stuck at the budget airline terminal in Kuala Lumpur.
The situation of MYAirlines, according to Shukor Yusof, an analyst with aviation consulting firm Endau Analytics, indicates that the Malaysian market, which now has three well-established airlines, is overcapacity.
According to Shukor, it also demonstrates how Malaysian regulators neglected to keep an eye on the financial stability of regional airlines and the impact of the US dollar's strength vs the ringgit, which increased the cost of jet fuel.
