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Insolvent Malaysian low-cost carrier MYAirline (MYM, Kuala Lumpur Subang) has agreed to pay 158 employees MYR4.3 million ringgits (USD917,900). Malaysia’s Labour Department secured the payment on behalf of the employees’ union, which was pursuing the airline for unpaid salaries. The payments will start in January but are contingent on the carrier securing fresh investment.
MYAirline ceased operations in early October, with the Malay Mail outlet now reporting that it did not pay some salaries during September and October. The Malaysian Trade Union Congress (MTUC), representing the 158 employees, lodged a claim with the Malaysian government’s Department of Labour. MTUC general secretary Kamarul Baharim said the department then ordered the airline to pay the overdue salaries, which reportedly date back five months in some cases. Baharim acknowledged the order but was unconvinced MYAirline would be in a position to honour it.
“Waiting for investors is not an acceptable course of action,” he told local news outlets late last week. “However, we are concerned about the situation of the employees. What if new investors don’t come forward?”
Earlier this month, MYAirline said it remained in talks with potential investors. At that stage, lessors had repossessed six of the carrier’s ten A320-200s. MYAirline said the remaining aircraft remained registered and continued to be managed by lessors, assisted by MYAirline’s Continuing Airworthiness Management Organization (CAMO). Government agencies have also suspended MYAirline’s air services licence and air operator’s certificate.
ch-aviation has contacted MYAirline for updated details.
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