PUTRAJAYA, Oct 16 — The Civil Aviation Authority of Malaysia (CAAM) has suspended the Air Operator Certificate (AOC) of MyAirline Sdn Bhd (MyAirline) for 90 days effective today to allow a detailed audit to be carried out on the company.
CAAM chief executive officer Datuk Norazman Mahmud said the suspension takes effect under Regulation 193 (3) of the Civil Aviation Regulations 2016 pending investigations by CAAM.
“A detailed audit will be conducted during this period of suspension to reassess the airline’s capability,” he said in a statement today.
MyAirline Sdn Bhd suspended its operations from Oct 12 until further notice due to significant financial pressures, pending shareholder restructuring and recapitalisation.
Norazman said among the key aspects that are assessed for an AOC issuance and renewal are the capabilities of the air operator to conduct safe operations and in accordance with the provisions of the operations specification.
“CAAM carries out a detailed safety audit to assess the capability and competency of the air operator in the areas of commercial air transport, operations, and airworthiness,” he said.
Norazman said a safety audit was conducted on MyAirline from May 29 to June 1 for the AOC renewal and at that time, there were no indications of financial distress.
“Elements of the financial indicator checklist as per International Civil Aviation Organisation (ICAO) Documents 8335 were included in the safety audit process.
“As part of the safety audit, AOC holders must also provide evidence indicating financial solvency to CAAM. This is to ensure the air operator has the financial resources to conduct its planned operations.
“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 such notification to CAAM,” he said.
Norazman said the sudden suspension of MyAirline’s operation on Oct 12, without prior notification to CAAM, raises serious concerns about public safety and the overall integrity of civil aviation operations in Malaysia.
He said any violations by AOC holders will be dealt with in accordance with Civil Aviation Regulations 2016 and Civil Aviation Directives (CAD).
“ CAAM reminds all license holders to uphold their obligation to regulations and ensure strict compliance,” he added.
Meanwhile, Deputy Transport Minister Datuk Hasbi Habibollah said the Malaysian Aviation Commission (MAVCOM) is now reassessing the granting of the Air Service Licence (ASL) to MyAirline following the suspension of the company’s operations.
Hasbi said this move is based on provisions under the Malaysian Aviation Commission Act 2015 (Act 771) which also allows the company to be subject to financial penalties if it fails to comply with consumer protection provisions as stipulated under the Malaysian Aviation Consumer Protection Code (MACPC).
“MAVCOM has issued a show-cause letter to MYAirline on October 13, and the company has been given 14 days to make representations to MAVCOM over its failure to comply with the ASL conditions.
“After receiving representations from MYAirline, MAVCOM will assess whether MYAirline can continue its operations or whether its licence should be suspended or canceled according to Section 43, Act 771,” he said at a Special Chambers sitting in the Dewan Rakyat here today.
