Malaysian police have arrested the co-founder and majority shareholder of MYAirline (MYM, Kuala Lumpur Subang), along with his wife and adult son. Goh Hwan Hu, along with his wife Neow Ean Lee, and son Goh Tze Han, were taken into custody on October 18 using provisions in Malaysia's Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act (2001). Authorities have remanded the trio for four days. MYAirline abruptly suspended all operations on October 12, citing financial problems.
Confirming the arrests, Malaysian police did not specify the alleged offences or say if they were connected to the low-cost carrier, simply advising that the three were hauled in to assist in an investigation. Both Goh and his son sit on the MYAirline board. However, the family has extensive other business interests. Jothi Prakash Murugan, a Trillion Cove director, also sits on the MYAirline board.
Goh owns private firms Zillion Wealth and Trillion Cove Holdings. Zillion Wealth owns 88% of MYAirline, and Trillion Cove owns 10%. The now former CEO Raynor Teo, owns the remaining 2%. Earlier this year, Trillion Cove was caught up in a money laundering case after the now-former CEO of Malaysia Automotive Robotics and IoT Institute allegedly received tainted fees associated with the purchase of MYR1 million ringgits (USD210,800) worth of redeemable preference shares from Trillion Cove. Goh is also involved with a Malaysian payment gateway company that allegedly accepted deposits without the necessary licenses. ch-aviation does not say the Goh family have participated in any wrongdoing, only that they are under investigation.
Meanwhile, as the fallout from the collapse of MYAirline spreads, the Malaysian government has scrambled to distance itself from the carrier. Earlier this week, Transport Minister Anthony Loke moved to have the airline's operating licences suspended. Additionally, interim CEO Stuart Cross has resigned, lessors want their aircraft back, and some parliamentarians are calling for an inquiry into the airline's shareholders and who approved its licences in the first place. "We were caught by surprise," said Loke after MYAirline ceased operations. "We were totally shocked. They (MYAirline) didn't even inform us or the Malaysian Aviation Commission, (they) just disappeared." The government has also ruled bailing out MYAirline. "The days of bailouts are over," Deputy Transport Minister Hasbi Habibollah told parliament last week.
MYAirline's fleet of nine A320-200s were acquired on leases from Aircastle, Aviation Capital Group, Avolon, Carlyle Aviation Partners, Genesis Leasing, Mizuho Leasing, and SMBC Aviation Capital. Aircastle has two aircraft at MYAirline, and the remaining lessors all have a single aircraft placed there. Reportedly, all the lessors are keen to retrieve their planes. According to The Straits Times, one local airline is happy to take the aircraft off the lessor's hands. AirAsia Aviation Group CEO Bo Lingam says he'll take up to six A320s. "They (the lessors) asked us last week if we're interested, and we said yes. We'll confirm by next week the number of A320s we'll be taking," he said. The AirAsia Group is an existing customer of the lessors. ch-aviation has approached the AirAsia Group for further details.
