MYAirline succumbs to financial squeeze in a competitive Malaysian market

The Malaysian LCC MYAirline has suspended operations after efforts to get new investment were unsuccessful, leaving it with no option but to halt flights while it continues its pursuit of fresh funding.

The airline was launched less than a year ago, and its predicament underlines how challenging the domestic and short haul international market is in Malaysia - for LCCs in particular.

Just three days before its suspension, MYAirline was expressing optimism that a stakeholder deal was imminent. There were media reports that a local investor was interested, but such a deal did not eventuate in time.

Despite the fact that the airline industry is in a high demand environment, international capacity is still lower than pre-pandemic levels and profitability is far from guaranteed for smaller operators.