Client Updates

AirAsiaX’s Has Suffered a Setback in Its Attempt to Uplift the PN17 Status

Bursa Malaysia, the stock exchange, has rejected AirAsiaX’s (“AAX”) attempt to uplift its PN17 status and AAX’s attempt to obtain relief from Bursa from having to submit a regularization plan. The rejection came around notwithstanding the apparent market improvement in the passenger airline industry. The rejection is also, in one way, seen as the authority’s closer watch on the financial health of airlines after the sudden cessation of operations of MYAirline, an unlisted carrier, recently.

The setback to AAX is also reportedly to have some ramifications to Capital A Berhad, which apparently has the common substantial shareholders as AAX and which operates the sister airline, namely, AirAsia. Capital A is apparently in PN17 as well.

ETCoLaw acted for INMARSAT, an international satellite operator, in the debt restructuring scheme of AAX. For more information, please visit Notable Consultations.

For more information about ETCoLaw’s Aviation & Space Law Practice and Insolvency & Restructuring Practice, please click on the respective words.

If you need legal advice or want to know more about ETCoLaw’s law consultancy, please CONTACT ETCoLaw.

19 October 2023 

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MYAirline Suspends Operations with Immediate Effect until Further Notice

MyAirline, a budget airline launched in December 2022 in the aftermath of border reopening after the COVID-19 pandemic, has announced cessation of operations with immediate effect until further notice.

The business cessation news sort of confirmed the earlier market intelligence that the airline was facing financial troubles and had delayed salary payment as well as payment to its suppliers. The news also sort of came as a surprise as there had been rumours just a few days ago that the airline was about to get a new shareholder which would provide the much-needed financial support. It remains to be seen if the so-called White Knight will come in to revitalise MYAirline.

MYAirline joined the highly-competitive budget air transport market which had seen at least 3 existing players. MYAirline was launched at a time when nearly all the other players had been severely hit by the border closure as a result of the pandemic which saw the latter’s aircraft grounded for an indefinite period.

Other Malaysia-based airlines including Malaysia Airlines, Batik Air and AirAsia, have stepped in to offer replacement flights to the passengers who booked their flights with MYAirline.

MAVCOM, the industry economic regulator, has in the meantime called for MyAirline to refund the fares to its passengers.

For more information about ETCoLaw’s Aviation Law Practice, please visit Aviation & Space Law Practice.

If you are one of the MYAirline creditors and are likely to be affected by the prospective insolvency or restructuring of MYAirline, please do not hesitate to Contact ETCoLaw.

12 October 2023

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US Anti-Dumping Petition against Malaysian Boltless Steel Racks

Edsal Manufacturing Co., Inc. (“Petitioner”), apparently the largest US producer of boltless steel racks, filed an anti-dumping petition with the US Department of Commerce and International Trade Commission against certain boltless steel rack products allegedly dumped from certain countries like Malaysia, Thailand and Vietnam.

The Petitioner is asking for the US Department of Commerce to impose anti-dumping duties ranging from 41.29% to 232.94% on imports of boltless steel shelving from Malaysia, among others.

If you are a manufacturer or exporter to the US of boltless steel racks, and are or could be affected by the said anti-dumping petition, you are urged to CONTACT ETCoLaw.

For more info about ETCoLaw’s Trade Remedies Practice, please go to the firm’s Dispute Resolution and Administrative Investigation Practice.

27 April 2023

anti-dumping safeguard petition penalty investigation trade remedies

anti-dumping safeguard petition penalty investigation trade remedies 

New Minimum Wages

The Minimum Wages Order 2022 (“MWO 2022“) has been gazetted. The generalized and summarized position is as follows.

A general line is drawn in the MWO 2022 between employers who employ 5 or more employees or employers who carry out a professional activity (regardless of the number of employees), on the one hand, and employers who employ fewer than 5 employees on the other hand.

For employers with 5 or more employees or who carry out a professional activity, the minimum monthly wages beginning on 1 May 2022 shall be RM1,500 or minimum hourly wages of RM7.21.

For employers who employ fewer than 5 employees, the minimum monthly and hourly wages for those employed in City Council or Municipal Council areas shall be RM1,200 and RM5.77 respectively, and RM1,100 or RM5.29 respectively for those employed in other places, which rates shall be applicable for the period 1 May 2022 to 31 December 2022. For the period from 1 January 2023 onwards, the minimum wages shall be the same as the rates applicable to employers with 5 or more employees.

The MWO 2022 does not apply to domestic servants.

29 April 2022

aviation airlines space competition corporate commercial antitrust

aviation airlines space competition corporate commercial antitrust

AirAsia Berhad is deemed PN17 Company

According to AirAsia Berhad’s (“AAB“) announcement filed with the Bursa Malaysia (i.e. the Stock Exchange), AAB apparently failed in its appeals to have the Relief Period extended beyond 7 January 2022. The Relief Period appears to be related to the measures introduced by the Bursa in response to the market situations brought about by the COVID-19 pandemic. 

While AAB has not stated that it is now a PN17 company (n 1), it appears to be deemed a PN17 company (n 2). 

Please do not hesitate to CONTACT ETCoLaw if the new development is expected to affect your company’s business dealings.

Notes:

n 1 https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3226190

n 2 https://www.theedgemarkets.com/article/airasia-classified-pn17-company-after-bursa-dismisses-its-appeal

14 January 2022

aviation airlines space competition corporate commercial antitrust

aviation airlines space competition corporate commercial antitrust

The Seat of Arbitration Determines the Exclusive Supervisory Jurisdiction

The Federal Court (the apex court) recently held in an appeal concerning some legal proceedings that had arisen from a domestic arbitration that the seat of an arbitration is a distinct legal concept from the physical venue of the arbitration. It is the seat of the arbitration that determines the lex arbitrii and curial law of the arbitration.

Subsequent to an arbitration process, if any of the parties wishes to, inter alia, challenge the award or register the award, the High Court to go to for this purpose is the High Court that possesses the exclusive supervisory jurisdiction. While there are two High Courts of co-ordinate jurisdiction in Malaysia, it is the seat of the arbitration that determines which of these two High Courts that possesses the exclusive supervisory jurisdiction.

In obiter, the Federal Court also seems to suggest that when drafting an arbitration clause or arbitration agreement, the seat should be stated as a city in a country.

If you have any queries regarding the Federal Court decision, or would like to know how to improve the arbitration clause or agreement that you have been using, or have any potential dispute that is subject to arbitration, you may wish to CONTACT ETCoLaw.

16 September 2021 

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Court of Appeal allows Appeals by Malaysia Airlines and Air Asia

The Court of Appeal allowed the appeals by Malaysia Airlines and Air Asia…to read more.

27 April 2021

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Aircraft Leasing, Scheme of Arrangement, and the Cape Town Convention

30 March 2021

competition antitrust aviation aircraft leasing financing cape town

COVID-19, Airline Debt Restructuring, and the Law on Scheme of Arrangement

22 March 2021

competition antitrust aviation aircraft leasing financing cape town

MyCC’s Final Decision against PIAM and Its 22 Members

1 October 2020

competition antitrust aviation corporate commercial property tech

Anti-Dumping Investigation – Imports of Polyethylene Terephthalate

29 July 2020

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competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice

competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice

competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice

competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice

competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice