New Straits Times

MAVCOM: CONSUMERS TAKE PRECEDENCE

Commission says it will not risk overcapaci­ty on certain routes

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THE Malaysian Aviation Commission (Mavcom) said the air traffic rights (ATRs) allocation is made following close consultati­on and after taking into considerat­ion the views of all Malaysian carriers.

In a statement yesterday, Mavcom said the principles and criteria applied in any ATR allocation had been made known to all Malaysian carriers.

This was in response to a recent media report on Mavcom decision to reject AirAsia Bhd’s applicatio­n for more flights on the Kuala Lumpur-Haikou and Kota Kinabalu-Sandakan routes.

The commission said in allocat- ing the ATRs, it aimed to facilitate orderly growth while also considerin­g the risk of overcapaci­ty, where the supply of seats far exceeds passenger demand on a particular route.

Mavcom said route overcapaci­ty could lead to heightened risks of unutilised seats and result in flight cancellati­ons and merging of flights, which were detrimenta­l to passenger convenienc­e.

It added that overcapaci­ty also gave rise to risks of a carrier exiting a route and lessening competitio­n and consumer choice on that route in the long term.

Mavcom said as at April 30, it had awarded 397 ATRs to Malaysian carriers, 295 of which were utilised and 102 either not used or surrendere­d back to the commission.

On the Kota Kinabalu-Sandakan and Kuala Lumpur-Haikou routes, Mavcom said it allocated the ATRs after considerin­g a number of factors.

In the case of the Kota Kinabalu-Sandakan route, this route was served by AirAsia (18 weekly trips), Malaysia Airlines (seven weekly trips) and MASwings (21 weekly trips) as at December.

On January 29, the commission approved AirAsia’s applicatio­n for seven additional trips per week, bringing its total number of trips for this particular route to 25 weekly trips.

In February, AirAsia applied for an additional seven weekly trips on the route, which the commission rejected because of a risk of overcapaci­ty.

For the Kuala Lumpur-Haikou route, it was served by Malaysia Airlines and Malindo Air (two weekly trips each) as at December.

AirAsia had previously operated this route but terminated its services in 2012.

On February 21, AirAsia applied to operate seven weekly trips on the route. However, the commission on April 3 awarded AirAsia only four weekly trips due to fears of overcapaci­ty.

Mavcom said AirAsia could resubmit its applicatio­ns for both routes in October.

 ?? BLOOMBERG PIC ?? AirAsia applied to add seven weekly trips for the Kota KinabaluSa­ndakan route, bringing its total number of trips to 25 per week.
BLOOMBERG PIC AirAsia applied to add seven weekly trips for the Kota KinabaluSa­ndakan route, bringing its total number of trips to 25 per week.

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