MYAirline reportedly owes RM14M in unpaid salaries to affected staff

Malaysian carrier, MYAirline, reportedly owes about RM14 million in salaries for affected staff and RM9 million in payments for the Employees Provident Fund for October last year until April, according to an article on The Business Times. This follows the Malaysian Aviation Commission’s (MAVCOM) suspension of MYAirline’s Air Service Licence (ASL) in November last year. In fact, the company's Malaysia, Singapore and Indonesian staff have been waiting for a resolution since their last meeting with the MYAirline's management on 11 October 2023, said The Business Times article.

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"The employees' primary concern is that management takes a more responsible approach to addressing these issues, and that the government intervenes to ensure that employees receive what is rightfully due to them, and that a thorough investigation is conducted into these matters especially taxes matters and unpaid wages," said MYAirline Singapore station head Faezah Hamid, in conversation with A+M.

According to The Royal Malaysia Police, the airline’s co-founder and major shareholder, along with his wife and son were arrested to assist in a money laundering probe. News of employee salaries being left unpaid come after MYAirline reportedly agreed to pay RM4.3 million worth of unpaid salaries to 158 of its employees after it secured new investors in November last year. The payments are reportedly expected to start in January.

After it ceased operations, the Malaysian Aviation Commision (MAVCOM) instructed MYAirline to discontinue sales and the booking of flights, and to refund affected customers. During the closing, the airline said in a statement:

"We deeply regret and apologise for having to make this decision as we understand the impact it will have on our loyal passengers, dedicated employees and partners. 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."

Malaysian Trades Union Congress (MTUC) secretary general Kamarul Baharin Mansor said the agreement was reached following an order issued by the Labour Department, according to media reports. Mansor reportedly said that MTUC remains skeptical about MYAirline's ability to pay as promised, citing the carrier's past failures to pay employee salaries in September and October.

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