The Malaysian Aviation Commission (MAVCOM) has suspended the air service licence (ASL) of MYAirline (MYM, Kuala Lumpur Subang) after the grounded carrier failed to satisfactorily address issues raised in an October 13, 2023, show cause letter.

The ASL's suspension took effect on November 1, three weeks after MYAirline suspended flight operations. In late October, MYAirline's management said they had responded to the MAVCOM show cause letter, along with a similar letter issued by the Civil Aviation Authority Malaysia (CAAM).

In late 2021, MAVCOM issued conditional approval for MYAirline's ASL, effective from January 1, 2022, to December 31, 2022. The airline, which started flying in December 2022, was later issued with a full ASL, having passed fit and proper person tests, provided evidence of its financial bona fides, and met its regulatory obligations. However, immediately after its collapse, MAVCOM began investigating possible breaches of the ASL.

"MAVCOM has decided to suspend MYAirline’s ASL as the representations made by the airline are not satisfactory to the show cause letter," MAVCOM's statement on the matter reads. "(MAVCOM) made this decision with the view to safeguard the interests of passengers and employees affected by MYAirline’s suspension of operations, as well as taking into consideration the challenges faced by the aviation industry post-Covid-19 pandemic."

MAVCOM also says over 117,000 passengers had purchased MYR22 million ringgits (USD4.65 million) worth of tickets through March 31, 2024. The agency says it will continue to talk to Malaysia's central bank to find avenues to reimburse out-of-pocket passengers, almost 60% of whom had secured their tickets via travel agents.

Meanwhile, CAAM, which was responsible for issuing MYAirline's air operator's certificate (AOC), has confirmed to Cirium that multiple lessors have applied to take their planes, placed at the grounded carrier, off the Malaysian registry. MYAirline was operating nine leased A320-200s. Aviation Capital Group applied to deregister 9M-DAC (msn 5661) on October 26. Genesis Aircraft Services applied to deregister 9M-DAD (msn 4098) on the same date. Avolon applied one day later to deregister two of their aircraft, 9M-DAJ (msn 2968) and 9M-DAL (msn 4013). The ch-aviation fleets module indicates that Aircastle, Carlyle Aviation Partners, and SMBC Aviation Capital also have one or more aircraft placed at MYAirline.

Police investigations into the financial activities of MYAirline's founder also remain active, with Malaysian business outlets reporting that the Royal Malaysian Police is now examining a potential MYR81 million (USD17.1 million) fraud concerning an investment scheme run by i-Serve Online Mall Sdn Bhd (ISOM). MYAirline's founder, Allan Goh Hwan Hu, is also a major shareholder and allegedly ISOM's controller. That entity has been the subject of several police investigations concerning possible fraud and money laundering offences. In the wake of MYAirline's collapse, the police detained Goh and two of his immediate family members for questioning. Now released, investigations into Goh, ISOM, and possible irregular funding links to MYAirline continue.