The aviation regulator today announced that it had suspended MYAirline’s air operator certificate (AOC) effective immediately for a period of 90 days pending further investigations.

The low-cost carrier had suspended its operations abruptly on Oct 12 because of “severe financial challenges”. The suspension is believed to have affected some 125,000 passengers who had bought tickets up to next year.

CAAM was criticised for having extended MYAirline’s AOC for two years on Oct 9, just three days before the low-cost carrier suspended its operations.

However, in a statement today, it said there were “no findings to indicate financial distress” during the safety audit carried out from May 29 to June 1 for the purpose of renewing the airline’s AOC.

CAAM issues AOCs to authorise air operators to engage in specified aircraft operations. Among the key aspects that it looks at before issuing or renewing the AOC are the capabilities of an air operator to conduct safe operations.

CAAM said that as part of the safety audit, AOC holders must also provide it with evidence indicating financial solvency.

“This is to ensure the air operator has the financial resources to conduct its planned operations,” it said.

“Should a financial issue arise, a written notification to CAAM must be made immediately to ensure no compromise to the safety of operations.

“To date, MYAirline has not submitted any such notification to CAAM.”

CAAM said the sudden suspension of MYAirline’s operations, without prior notification to CAAM, raises serious concern on public safety and the overall integrity of civil aviation operations in Malaysia.

It said a detailed safety audit will be carried out on MYAirline during this temporary suspension to reassess its capability.

Airlines typically require two licences to operate – an AOC and an air service licence (ASL), which is issued by the Malaysian Aviation Commission (Mavcom).