Malaysians may soon get a new ultra-low-cost carrier (ULCC), according to a report by The Edge.
The newly established budget airline, MYAirline will be an alternative to the budget airline industry, which is dominated by AirAsia.
MYAirline was led by a former civil aviation official and 2 industry veterans and has received conditional approval for an air service license (ASL) from the Malaysian Aviation Commission (Mavcom) on 22 December last year.
With the licence, MYAirline can fly passenger and cargo services just like Malaysia Airlines Bhd and AirAsia.
MYAirline’s paid-up capital is 2 million shares at RM1 per share, amounting to RM2 million, according to filings with the Companies Commission of Malaysia (SSM). Its shareholders are Zillion Wealth Bhd (88%), Trillion Cove Holdings Bhd (10%) and Rayner Teo Kheng Hock (2%), and it is believed that the airline venture is financially supported by Datuk Goh Hwan Hua.
With Goh on the board of directors are former director-general of civil aviation Azharuddin Abdul Rahman, former Malaysia Airports Holdings Bhd chief operating officer Abd Hamid Mohd Ali and former AirAsia group head of sales and distribution Teo Kheng Hock.
According to CGS-CIMB Research, the airline is believed to have signed a lease on two Airbus A320 aircraft “at cheap leasing rates” and may set out to challenge the dominance of AirAsia.
In addition to MYAirlines, The Edge also reported of Mavcom granting an ASL to Johor-based SKS Airways Sdn Bhd last month.
The budget airline is expected to take off later this month with a fleet of turboprop aircraft to service short-range domestic routes such as Subang to Pangkor island. It will focus on short-range domestic flights to island and coastal resorts.
Meanwhile, AirAsia was given a PN17 tag by Bursa Malaysia Securities last week and it indicates the company is financially distressed.