Struggling budget carrier MyAirline abruptly suspends service, leaving travelers stranded

Malaysian budget carrier MYAirline abruptly suspended operations yesterday, citing financial pressures less than 11 months after it took to the skies. The announcement on social media caught many travelers by surprise and left thousands stranded as 40 flights were canceled.

The airline apologized for the “extremely painful decision” but said “significant financial pressures” forced it to suspend operations pending an ownership 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,” the airline’s board of directors said in their 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 fly 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 paid. 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.

Malaysia Airports, which manages the country’s airports, said some 5,000 passengers were affected yesterday as 39 flights to local destinations and one to Thailand’s Don Mueang Airport were canceled. It said it was working to help those affected and the situation was under control.

Malaysia Airlines and low-cost carrier AirAsia and Batik Air announced discounts and special fares to help MYAirline passengers affected by the suspension. MDT/AP