The Malaysian government is merging the Southeast Asian country's two aviation regulatory agencies into one.
The Malaysian government is merging the Southeast Asian country's two aviation regulatory agencies into one.
Effective August 1, the two organizations – the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (MAVCOM) – will be unified and operate as an independent statutory agency. According to Malaysia's Transport Minister Anthony Loke, the move is to make CAAM financially sustainable, provide the agency with more decision-making power, and help keep skilled staff with better pay.
At present CAAM is tasked with the technical and safety ensuring aviation practices are in compliant with ICAO standards. MAVCOM is responsible for the economic and commercial part of the aviation industry, handling issues such as consumer protection and disputes between companies in the aviation industry.
Loke said the merger of the two regulatory agencies will help save the Malaysian government between RM1.5-RM2 billion (~USD $353-USD $471.2 million) over the next decade.
With the merger, MAVCOM's board will be dissolved and its staff will be offered roles at CAAM.
Malaysia's Aviation Industry Players Support Merger
The merger of the CAAM and MAVCOM was welcomed by aviation industry players such as AirAsia. In a statement, AirAsia Aviation Group Chief Executive Officer Bo Lingam said: “AirAsia welcomes the vision of a single aviation regulator system. Bringing key regulatory functions under one independent statutory body will further streamline processes, provide clearer engagement for industry players, drive greater efficiency across the aviation ecosystem, and ultimately benefit travellers through improved connectivity and service.”
"In further positioning Malaysia as a regional aviation hub, AirAsia looks forward to working with the government through CAAM to deliver greater efficiency, enhance international connectivity, and drive innovation within the industry,” Lingam added.
Lingam identified improvements needed for Malaysia's aviation industry including improvements in air traffic control and operational management at major international hubs such as at the Kuala Lumpur International Airport (KLIA) Terminal 2 – the terminal where AirAsia operates at the country's busiest air hub.
Another company – Batik Air – welcomed the move saying it would enhance operational efficiency and improve coordination across regulatory functions. Batik Air also recognized and thanked MAVCOM for its contributions to the aviation industry in Malaysia.
"We take this opportunity to express our sincere appreciation to the Malaysian Aviation Commission (MAVCOM) for its valuable support and contributions to Batik Air and the broader aviation industry over the years,” the airline said in a statement. "Its efforts have played a vital role in shaping a more robust and customer-focused aviation landscape in Malaysia.”
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