MYAirline fallout: Future airline licence applications to undergo greater scrutiny, says deputy minister

Hasbi Habibollah.

KUCHING, Oct 18: More agencies besides the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority (CAAM) will be involved in the approval of airline licences in the future.

The recent incident with MYAirline Sdn Bhd (MYAirline), according to Deputy Transport Minister Datuk Hasbi Habibollah, has set a precedent for the future approval of airline licences, MalayMail reported.

“Certainly, what was raised (by MPs) as a starting point. It means that for the future—the lesson is always learned… surely this adds to our maturity.


“From this, it will become one of the criteria in future applications for aviation licences—yes, there are still many who are applying.

“It will be one of our SOPs (standard operating procedures) whereby we may need an internal investigation for the licence and we will need screening done by other agencies apart from Mavcom and CAAM, other agencies must also be brought together in the issue,” Hasbi said during a Special Chamber session in Kuala Lumpur on Monday (Oct 16), according to MalayMail.

The news outlet stated that Hasbi was addressing inquiries from MPs about the investigation into airline companies’ shareholders and discussing measures to prevent a recurrence of such incidents.

The Deputy Minister said MYAirline received its air service licence (ASL) last year after it fulfilled all the criteria and terms.

He also noted that there were no flaws in terms of safety and maintenance through the airline’s nine months in operation and the company’s financial status did not indicate any signs of trouble even during a May audit.

“When they (MYAirline) do their representation, everything will be questioned by Mavcom, and from there we will see what the next course of action is,” he added.

Regarding passenger refunds, Hasbi said MYAirline may be subject to a minimum penalty of RM200,000 if they do not meet requirements.

Furthermore, it was reported by news outlets that CAAM suspended MYAirline’s air operator’s certificate (AOC) effective Monday (Oct 16).

Based on reports, CAAM chief executive officer (CEO) Datuk Capt Norazman Mahmud stated that this action was taken in accordance with Regulation 193 (3) of the Civil Aviation Regulations 2016. The suspension will last for 90 days while further investigations are conducted.

MYAirline’s suspension had an impact on approximately 125,000 passengers who had purchased tickets totaling RM20 million.

On Friday (Oct 13), Mavcom issued a show-cause letter to MYAirline. The letter gave the airline company a 14-day deadline to provide representation to Mavcom regarding their failure to comply with the ASL conditions.

After receiving representation from MYAirline, Mavcom will assess whether MYAirline can continue its operations or if its licence should be suspended or cancelled according to Section 43 of the Malaysian Aviation Commission Act 2015. — DayakDaily