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Malaysia regulator fears airline expansion curbs after FAA downgrade

Published 02/11/2020, 01:49 PM
Updated 02/11/2020, 01:56 PM
© Reuters. Malaysia regulator fears airline expansion curbs after FAA downgrade
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KUALA LUMPUR, Feb 11 (Reuters) - Malaysian airlines could be
barred from introducing new routes in China, South Korea and
Japan after the U.S. Federal Aviation Administration (FAA)
downgraded the country's air safety rating late last year,
Malaysia's aviation regulator said on Tuesday.
In its first comments since the FAA downgrade, the Malaysian
Aviation Commission (MAVCOM) said it was concerned its carriers
would suffer the same fate as Thailand when it was downgraded by
the FAA in 2015 https://www.reuters.com/article/us-thailand-aviation/china-japan-south-korea-halt-thai-air-route-expansion-on-safety-concerns-idUSKBN0MQ1ZM20150330.
China, South Korea and Japan all stopped Thailand-based
airlines from flying charters and new routes because of safety
concerns raised by the International Civil Aviation
Organization, which was followed by the FAA downgrade.
MAVCOM Chief Operating Officer Azmir Zain said Malaysian
carriers could lose as much as 4 billion ringgit ($966 million),
or 24% of their revenue a year, if China, Japan and South Korea
took the same restrictive steps against them.
Malaysia's airline industry is dominated by state-owned
Malaysia Airlines, AirAsia Group Bhd AIRA.KL and its long-haul
arm AirAsia X Bhd AIRX.KL .
Azmir said that MAVCOM had yet to hear from the three
countries about any action they might take.
Azmir also cast doubt over claims by the Malaysian
government that it would be able to regain the top FAA category
in 12 months, noting that Thailand had yet to restore its rating
and the Philippines took six years to return to Category 1
following its own downgrade. The FAA's safety ratings do not affect existing flights.
= 4.1390 ringgit)

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