Current:Home > MyCash-strapped Malaysian budget carrier MyAirline abruptly suspends operations, stranding passengers-LoTradeCoin
Cash-strapped Malaysian budget carrier MyAirline abruptly suspends operations, stranding passengers
View Date:2024-12-23 20:07:40
KUALA LUMPUR, Malaysia (AP) — Malaysian budget carrier MyAirline abruptly suspended operations Thursday, citing financial pressures less than 11 months after it took to the skies. The unexpected announcement on social media caught many by surprise and left angry passengers stranded at the airport.
The airline apologized for the “extremely painful decision” but said “significant financial pressures” made it necessary to temporarily halt operations pending shareholder restructuring and recapitalization of the company.
“We have worked tirelessly to explore various partnership and capital raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision,” its board of directors said in the statement.
The move came just days after the airline said it was in advanced stages of finalizing a strategic partnership. Local media reported that the suspension signaled that those talks may have collapsed.
The airline began flights last December with a fleet of nine aircraft that flies to domestic destinations and Thailand’s capital, Bangkok. It is owned by businessman Allan Goh Hwan Hua. Just two days ago, CEO Rayner Teo, who has a 2% stake in the carrier, stepped down citing health reasons.
The Malaysian Aviation Commission instructed MyAirline to immediately halt sales and bookings of flights, and said refunds must be given. It said it was investigating the airline over complaints that employees’ salaries were unpaid among other issues.
MyAirline made the announcement on social media before dawn on Monday, after passengers on early flights had already checked in at the terminal. Angry travelers took to social media to criticize the carrier for the sudden announcement that left them stranded.
The carrier had 19 flights scheduled for Thursday. Malaysia Airlines, low-cost carrier AirAsia and Batik Air announced discounts and special fares to help MyAirline passengers impacted by the suspension.
veryGood! (2)
Related
- Arizona Supreme Court declines emergency request to extend ballot ‘curing’ deadline
- Bananas Foster, berries and boozy: Goose Island 2023 Bourbon County Stouts out Black Friday
- 2 dead in vehicle explosion at Rainbow Bridge U.S.-Canada border crossing; officials say no sign of terrorism
- Chinese refugee challenges Australian law that imposes a curfew and tracking bracelet
- Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles
- Humanitarians want more aid for Gaza, access to hostages under Israel-Hamas truce. And more time
- Thanksgiving Grandma Wanda Dench and Jamal Hinton Reunite for Holiday for 8th Year
- The 15 Best Black Friday 2023 Tech Deals That Are Too Good to Be True: Bose, Apple & More
- Indiana in the top five of the College Football Playoff rankings? You've got to be kidding
- Buffalo Sabres rookie Zach Benson scores first goal on highlight-reel, between-the-legs shot
Ranking
- Duke basketball vs Kentucky live updates: Highlights, scores, updates from Champions Classic
- Main Taiwan opposition party announces vice presidential candidate as hopes for alliance fracture
- South Korea says Russian support likely enabled North Korea to successfully launch a spy satellite
- The EU Parliament Calls For Fossil Fuel Phase Out Ahead of COP28
- Former NFL coach Jack Del Rio charged with operating vehicle while intoxicated
- Candace Cameron Bure’s Son Lev Is Engaged
- 3 journalists and 2 relatives have been abducted in a violent city in southern Mexico
- A former Canadian RCMP intelligence official is found guilty of breaching secrets law
Recommendation
-
Noem’s Cabinet appointment will make a plain-spoken rancher South Dakota’s new governor
-
Suspended Alabama priest married the 18-year-old he fled to Italy with, records show
-
These Are the 42 Can't-Miss Black Friday 2023 Fashion & Activewear Deals: Alo Yoga, Nordstrom & More
-
You can make some of former first lady Rosalynn Carter's favorite recipes: Strawberry cake
-
The Best Gifts for Men – That He Won’t Want to Return
-
Pilot killed when small plane crashes near central Indiana airport
-
Search resumes for the missing after landslide leaves 3 dead in Alaska fishing community
-
New Jersey blaze leaves 8 firefighters injured and a dozen residents displaced on Thanksgiving