KUALA LUMPUR: Malaysian Aviation Commission (Mavcom) has suspended the air service licence (ASL) of MYAirline Sdn Bhd.
In a statement today, Mavcom decided to suspend the licence with immediate effect after deeming MYAirline's response to a show cause letter issued last month unsatisfactory.
The commission said pursuant to section 43(1) of the Malaysian Aviation Commission Act 2015 (Act 771), the suspension would safeguard the interests of passengers and employees affected by MYAirline's suspension of operations.
Mavcom executive chairman Saripuddin Kasim said 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.
"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.
"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," said Saripuddin.
Mavcom said MYAirline is liable to refund its affected passengers as per the Malaysian Aviation Consumer Protection Code 2016 (MACPC), even though its ASL has been suspended.
Over 117,000 estimated passengers are affected by MYAirline's suspension of operations, with a total value of more than RM22 million in forward sales for scheduled flights from Oct 12 until March 31, 2024.
"A 58 per cent (RM12.8 million) of the forward sales are from travel agencies, followed by 41.8 per cent (RM9.2 million) from payments made by credit or debit cards.
"Mavcom will continue to engage with Bank Negara Malaysia in finding possible avenues of recourse for affected passengers to obtain refunds for unfulfilled flight bookings," it added.
Mavcom's task force has been mandated to look into the affected passengers' refunds and to provide recommendations on the way forward.