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- 🛩️ From Takeoff to Grounded: MYAirline’s Shocking Fall
🛩️ From Takeoff to Grounded: MYAirline’s Shocking Fall
The quickest rise and fall of MYAirline in Malaysia's aviation history
Admond Lee
February 23, 2025
Hey Founders,
Welcome to The Runway Ventures — a weekly newsletter where I deep dive into failed startup stories to help you become the top 1% founder by learning from their mistakes with actionable insights.
Today’s story is about how a Malaysia’s newest low-cost airline collapsed within a year because it was too good to be true. Let’s get to it! 🚀
Today at a Glance:
☠️ 1 Failed Startup → MYAirline
⚠️ 2 Mistakes → Lack of due diligence
🧠 3 Lessons Learned → If it looks too good to be true, it probably is
🔗 The Runway Insights → How to speed up product validation and reach market fit
💰 Southeast Asia Funding Radar → Finmo, a Singapore’s treasury operating system, raises $18.5M to help businesses streamline financial workflows
☠️ 1 Failed Startup: MYAirline
🚀 The Rise of MYAirline
🇲🇾 Founded by Dato Allan Goh Hwan Hua and Rayner Teo Kheng Hock (founding CEO) in 2021, MYAirline was Malaysia’s newest low-cost carrier to provide affordable travel to domestic and international destinations with the promise of great travel experience.
The Problem — 🦠 After the COVID-19 pandemic, people wanted to travel more but traditional carriers struggled with capacity and cost pressures.
The Solution — 🛫 MYAirline wanted to make air travel more accessible to a wider audience by streamlining services at competitive fares.
🔻 Using an all‑Airbus A320 fleet and a single‑type aircraft strategy, MYAirline reduced operational complexities.
🔻 This uniformity allowed for faster turnaround times and increased aircraft utilisation, translating into lower unit costs.
🔻 The airline’s focus on high load factors (with some flights reaching up to 100% capacity) and rapid route expansion was designed to maximise revenue while keeping fares low.
✈️ In short, MYAirline aimed to give the big boys like AirAsia a run for their money by offering dirt-cheap fares to cash-strapped post-pandemic travellers.
 | ⏰ The timing was perfect. MYAirline capitalised on the perfect storm of:
|
It was like finding a bargain at a garage sale, but for an entire airline!
🚀 Within just a few months of launching its inaugural flight on 1 December 2022, MYAirline recorded significant milestones:
By May 2023, early operations had already garnered impressive passenger volumes, and by June 2023, the airline celebrated transporting over 1 million domestic passengers.
At its peak, it had captured ~10% of Malaysia’s domestic market (~2 million passengers per month).
The introduction of international flights (beginning with Bangkok on 28 June 2023) underscored its rapid scaling.
🇲🇾 With a fleet expansion plan that envisioned growing from a handful of A320s to 50–80 aircraft within a few years and plans to go public by 2026, MYAirline was poised to become a major player in Malaysia’s low‑cost segment.
☁️ It seemed like the sky was the limit for this plucky little airline.
📉 The Fall of MYAirline
🛬 Despite its early success, MYAirline’s rapid expansion was undercut by severe financial mismanagement.
By October 2023, mounting debts, unpaid staff salaries, and a failure to secure essential investor funding led to an abrupt halt in operations.
🤯 Not just that, regulatory bodies discovered discrepancies in MYAirline’s financial health, and allegations of mismanagement (and even potential money laundering) surfaced.
📌 Here’s what happened to MYAirline:
We were caught by surprise and totally shocked. They didn’t inform us. They just stopped operating with no airline staff at the airport. How can you just disappear like that? This is highly irresponsible.
🛫 The Takeoff
11 Jan 2021 — 🇲🇾 MYAirline was founded by Dato' Allan Goh Hwan Hua and Rayner Teo Kheng Hock.
2022 — 🛫 Inaugural flight
1 Jan — The airline was granted a conditional Air Service Licence (ASL) by the Malaysian Aviation Commission (MAVCOM).
1 Oct — Secured its initial Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM).
15 Nov — Received its full ASL from MAVCOM, solidifying its regulatory standing.
1 Dec — MYAirline commenced operations with its inaugural flight from KLIA2 to Kuching, quickly establishing its domestic network.
2023 — 🌏 From domestic to international flights
24 May — 🤔 An incident involving a viral video of a flight attendant’s dispute with passengers hints at underlying operational pressures.
26 Jun — 🎉 Celebrated a major milestone by transporting over 1 million domestic passengers.
28 Jun — 🇹🇭 Launched its first international route to Bangkok, marking a key step in its expansion strategy.
⛈️ The Turbulent Storm
2023 — ⚠️ Mismanagement of funds + legal challenges
End of Sep — ⚠️⚠️ A whistleblower reported to MAVCOM that there had been delays in MYAirline paying salaries.
7 Oct — CEO Rayner Teo resigned due to health issues, and interim CEO Stuart Cross took over — an early sign of internal turbulence.
9 Oct —The airline received a 2‑year extension for its AOC from CAAM, even as financial challenges mount.
12 Oct — ❌ In a shocking move, MYAirline abruptly suspended all operations, citing “severe financial challenges.” Thousands of passengers are left stranded at the airport.
The airline had sold 125,000 tickets worth some RM20 million ($4.2 million) for flights scheduled until March 2024. — which would not be honoured (a scam?).
Besides, MYAirline had to pay travel agent deposits (RM23 million).
It also owed employees unpaid salary of RM4.3 million.
13 Oct —MAVCOM issued a show‑cause letter demanding explanations within 14 days for the suspension and failure to meet licence conditions.
16 Oct —The Transport Minister announced the temporary suspension of MYAirline’s licence, and CAAM formally suspended its AOC, heightening the regulatory crackdown.
18 Oct — 😱💸 Co‑founder Dato' Allan Goh Hwan Hua, along with his wife and son, was arrested to assist investigations under the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 (wait, what?).
19 Oct — 👨🏻⚖️ 15 investors filed lawsuits against Goh and 4 companies under his management, alleging mismanagement of funds.
They were seeking a monthly redemption value of more than RM8 million.
20 Oct — Authorities froze 15 bank accounts (containing RM5 million) linked to MYAirline, intensifying the financial scrutiny.
26 Oct — MAVCOM ordered MYAirline to submit a detailed written justification for its actions amid an intensified investigation.
4 more individuals were arrested as part of the investigation into MYAirline.
Based on preliminary questioning, it was revealed that 3 of the suspects were employees and held directorial positions in various entities owned by Goh (sounds like round-tripping?)
1 Nov — MAVCOM suspended MYAirline’s Air Service Licence to safeguard consumer and employee interests.
6 Nov — The airline clarified that only 4 of its aircraft remained in its fleet, with the majority already returned or transferred.
13 Dec — The Malaysian High Court dismissed MYAirline management’s application to strike out investor lawsuits, underscoring ongoing legal challenges.
14 Dec — AirAsia stepped in to lease 4 former MYAirline Airbus A320s, reflecting the market impact of the collapse.
31 Dec — MYAirline issued a cautionary statement warning customers of scams related to pending refunds as it awaited investor recapitalisation.
2024 — 🚨 The final collapse
12 Jan — In a last‑ditch effort to secure funding, the airline signed a Sale and Purchase Agreement with a Middle Eastern investor.
6 Feb — The final aircraft was officially deregistered by CAAM, leaving MYAirline completely fleet‑less.
15 Apr — With no viable investor emerging, CAAM revoked MYAirline’s AOC and Air Service Licence, effectively ending its operations.
🤦🏻♂️ And just like that, MYAirline's journey came to an abrupt end 1 year after the launch, leaving passengers stranded and the aviation industry stunned. The airline that promised to shake up Malaysian aviation ended up shaking up only its passengers' travel plans.
🙏🏻 My 2 cents:
I personally think the mission was noble. I mean, who doesn’t want to travel with cheap flights, especially after the pandemic.
But the missteps in capital management, coupled with allegations of improper financial practices, ultimately led to regulatory sanctions, the loss of its fleet, and the revocation of essential licences.
🇲🇾 From takeoff to touchdown, it was a wild 1-year ride that'll be remembered in Malaysian aviation history.
Want to learn more about MYAirline’s downfall?
⚠️ 2 Mistakes
Mistake 1: Lack of due diligence
One of MyAirline’s biggest failures was its inability — or unwillingness — to properly vet the financial health and background of its key investor and co-founder, Dato Allen Goh Hwan Hua.
The airline’s collapse exposed deep financial irregularities, leading to allegations of fraud, money laundering, and mismanagement.
🚩 Red Flags:
🙊 The Shady Business Background of Goh
Before launching MyAirline, Goh was the major shareholder of i-Serve Technology & Vacation, a company already under investigation for financial crimes.
Authorities later arrested Goh and key executives linked to i-Serve, revealing a web of financial misconduct. If MyAirline’s leadership had conducted thorough due diligence on Goh’s business history, they would have seen early warning signs.
❓ Unclear Sources of Funding
MyAirline aggressively expanded without clear visibility into how it was financing its growth.
The company was running at a net loss of RM12.51 million in 2022, yet it continued expanding operations and routes without a sustainable revenue model.
When financial troubles became public, it was too late — investigations revealed missing funds, unpaid staff salaries, and passengers left stranded.
👨🏻⚖️ Regulatory and Legal Troubles from Day 1
Given Goh’s financial dealings, MyAirline should have expected regulatory scrutiny. Instead, the company operated as if it was immune to compliance risks.
When investigations into MyAirline began, it became evident that the airline lacked internal governance controls to prevent financial misconduct, leading to its free fall.
Mistake 2: Rapid expansion without sustainable cash flow
💸 MYAirline came out of the gates swinging — aggressive route expansion, ambitious fleet growth, and even international flights within months of launch. But here’s the problem — growth needs fuel (aka MONEY).
🛫🛬 Selling cheap flights is easy. Running a profitable airline? Not so much. MYAirline focused on low fares and high load factors, but forgot one thing — profit margins.
🚩 What went wrong:
Ticket prices were too low to cover operational costs. High passenger loads don’t matter if your costs are bleeding you dry.
They aimed to scale from a few Airbus A320s to 50–80 aircraft in just a few years. That’s wild for a startup airline.
Unpaid salaries and mounting debts started surfacing within months, proving they had more routes than revenue to sustain them.
They were selling flights up to March 2024 — but with no money to actually operate them. That’s not a business plan; that’s a Ponzi scheme.
🧠 3 Lessons Learned
Lesson 1: If it looks too good to be true, it probably is
When MYAirline launched, it looked like the next big thing in Malaysian aviation. Dirt-cheap fares, sleek branding, and rapid expansion — it had all the makings of a disruptor.
💣 But behind the scenes? A financial time bomb waiting to explode.
🌮 Key Takeaways:
🤝🏻 Financial transparency matters (a lot)
Never assume a startup is legit just because it looks successful. Always check what’s under the hood — especially if you’re investing in, working for, or doing business with them.
If you’re evaluating a company (whether as an investor, employee, or vendor), look for financial transparency. Public financial records, debt levels, and cash reserves tell a much bigger story than just marketing hype.
For example, AirAsia X, the long-haul arm of AirAsia, nearly collapsed under debt but managed to restructure and survive.
Unlike MYAirline, AirAsia had the track record and investor trust to secure a rescue plan.
If MYAirline had a solid financial plan from the start, things could’ve been different.
Lesson 2: Profitability > Growth
🏃🏻♂️ Scaling fast feels like a power move — until you realise you’re sprinting straight into a financial wall. MYAirline expanded like a company on steroids, adding new routes, leasing more planes, and even setting its sights on international flights within months of launch.
The problem? They had no real revenue model to sustain that growth. Expanding without a sustainable cash flow isn’t just risky — it’s a guaranteed death sentence.
MYAirline | AirAsia | Batik Air | |
|---|---|---|---|
Years in Business | 1 Year (Collapsed) | 20+ Years (survived multiple crises) | 11+ Years (still operating) |
Ticket Pricing | Ultra-low & unsustainable | Low-cost (but profitable via add-ons) | Mid-range budget pricing |
Fleet Expansion | Too aggressive (no proven track record) | Gradual (well-financed) | Moderate (demand-driven) |
Revenue Model | Ticket sales only (no clear add-ons) | Multiple revenue streams (baggage fees, meals, partnerships) | Balanced approach |
Financial Health | Unclear funding (no sustainable cash flow) | Publicly trades (transparent financials) | Backed by major Indonesian investors |
Regulatory Compliance | Weak governance with legal troubles | Strong compliance & government relations | Well-established in the region |
🌮 Key Takeaways:
🤑 Prove your unit economics work before scaling
If your product isn’t profitable on a small scale, it won’t magically become profitable at a larger scale.
💰 Revenue ≠ Profit
Prioritize sustainable margins over vanity metrics.
$1 million of revenue means nothing if you’re losing money on every sale.
🚶🏻♂️ Slow and steady wins the race
Even AirAsia, the biggest budget airline in Malaysia, took years to expand strategically.
Scaling before profitability is the fastest way to destroy your business.
Lesson 3: Take care of your customers
Customer trust is your most valuable asset — especially in industries where safety and reliability matter (like aviation).
Even if MYAirline had somehow managed to secure more funding, its reputation was already destroyed. No one was going to book a ticket with an airline that stranded passengers without a word.
🌮 Key Takeaways:
🙏🏻 Always communicate with customers (especially in a crisis)
Silence = panic
If you’re struggling, be transparent and upfront about what’s happening.
Example — AirAsia posts real-time updates on social media when flights are delayed or disrupted.
🤦🏻♂️ Don’t take customers’ money if you know you can’t deliver
Selling tickets for flights you know won’t happen? That’s fraud.
Always have a refund & compensation policy in place for worst-case scenarios.
💟 Invest in customer service (it’s a long-term competitive advantage)
A good customer experience keeps people coming back, even if you screw up once.
For example, Malaysia Airlines still has loyal customers despite past financial struggles, because they prioritise service and reliability.
🔗 The Runway Insights
How to speed up product validation and reach market fit (Link)
5 interesting learnings from Cloudflare at $1.7B in ARR (Link)
What “your market is too small” really means from VCs (Link)
Non-obvious SEO advice for startups (Link)
Develop adjacent skills to become a sharper operator (Link)
The right (and wrong) way to spend money at your startup (Link)
💰 Southeast Asia Funding Radar
Finmo, a Singapore’s treasury operating system, raises $18.5M to help businesses streamline financial workflows (Link)
HD raises $5.6M to build a Sierra AI for healthcare in Southeast Asia (Link)
Parkwise, a Philippines-based urban mobility firm, plans to raise up to $250M from Patrizia and Mitsui & Co (Link)
Nexmedia, an Indonesia-based AI-powered healthtech company, raises funding co-led by East Ventures and Forge Ventures (Link)
EDGE Tutor raises $1M in Pre-Series A funding to connect Filipino teachers with global learners (Link)
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That’s all for today
Thanks for reading. I hope you enjoyed today's issue. More than that, I hope you’ve learned some actionable tips to build and grow your business.
You can always write to me by simply replying to this newsletter and we can chat.
See you again next week.
- Admond
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