KUALA LUMPUR: Malaysian Aviation Commission (Mavcom) views “noises” by certain quarters on the industry’s practices and regulations set by the commission as healthy and equally important for future challenges.
Aware of complaints on the commission’s role, its executive chairman Dr Nungsari Ahmad Radhi said the organisation accept it if they are constructive.
“We exist today because of the ambition to grow KUL and Penang as major aviation destinations; we need to make sure airlines see Malaysia as transparent and have fair jurisdiction.
Decisions are made independently based on policies and statutes without political interference,” he told Bernama in an interview.
KUL is an airport code assigned to Kuala Lumpur International Airport (KLIA) by International Air Transport Association (IATA) as an IATA location identifier.
KUL includes both terminals at the airport as it is a single airport.
The government he emphasised, set the policy, enact laws such as Mavcom Act but the commission decides the regulations – with consultations with stakeholders – and once gazetted, carry the full weight of the law.
“We are here to implement the law, you want to request for traffic rights, and other matters pertaining to competition, merger, licensing, don’t tell me it needs to go to the cabinet. You want to retract ground handler’s license; do you want to bring it to the cabinet?” he asked.
The purpose in the setting up of Mavcom is to detach the regulatory role from the government which has been the case previously because all airports and the only airline operating were wholly-owned by the government.
It is also aimed at growing the industry by attracting more investors and players, which could only happen if regulations are drafted and enforced independently and transparently.
“Hence, the rules of the game must be clear and fair to all,” he stressed.
“Once upon a time, decisions on traffic rights have to go through the Ministry of Transport and sometimes, it goes up to the cabinet and this causes dissatisfaction among airline operators’ as some might get it and some not. There was a perception that government-owned companies were favoured.
“Then Mavcom was established, and we believed that traffic allocation should be a very simple process, and we have digitised the application system, dubbed as an aero file, which allows airlines to file for flights. It is very transparent and certainly shouldn’t trigger any disagreement.”
Nungsari reiterated that the function of Mavcom revolves around licensing and monitoring economic competition and performance, protecting consumers via the Malaysian Aviation Consumer Protection Code as well as overseeing the quality of airports services.
In addition to that, it also advises the government on aviation matters.
“We also look into issues related to mergers, anti-competitive behaviour and acquisition between aviation players,” he added.
As for ground handling activities, Nungsari said that the first phase of the rationalisation exercise was completed which saw the number of licenses reduced.
The ground handlers need to be further consolidated as operational efficiency at airports depend on the efficiency of ground handlers.
Mavcom has lifted the moratorium on new applications for Ground Handling Licences (GHL) with effect from June 1, 2019.
The moratorium was imposed on 25 April 2016 as part of the commission’s rationalisation exercise for the ground handling industry which saw the number of licenses reduced from 64 to 29.
“While we have lifted the moratorium, we actually look forward towards further consolidation. There must be some scale to these operators,” he revealed.
Asked on a list of grievances voiced by airlines last year, particularly by AirAsia, Nungsari noted that the low-cost carrier will never be satisfied with what they have in hand.
“AirAsia will never be satisfied, I don’t know why, we recognise them,” he added.
According to Mavcom, AirAsia Group received the highest number of Air Traffic Rights (ATR) or over 95 per cent of their requests. We actually commend them for their operational efficiency and their system for addressing consumer complaints.”
As for Suasa Airlines Sdn Bhd and Eaglexpress Air Charter Sdn Bhd, he noted that Mavcom revoked the latter’s air service permit (ASP) because they failed to pay their vendors and staffs which led to the termination of permit.
“Licences need to be given to companies with the resources to carry out their business and led by fit and proper people. People who have a licence should behave responsibly while for Suasa, they operated illegally and was charged in court. These laws must be enforced to protect Malaysia’s regulatory reputation. You can’t operate an airline without a licence.
He pointed out that the aviation industry is a high-capital intensive industry which dealt with international standards and more importantly, people’s lives.
“We cannot have rules without enforcement, otherwise other airlines and companies would see Malaysia as a cowboy jurisdiction. We heard complaints about us terminating licence for non-performance operators and not giving licence to fit and proper carriers, we accept that, because that’s is what required to make the sector attractive to investors.”
“If people are still uncomfortable with Mavcom’s actions, takes us to court. The law provides for that,” he said. – Bernama
