Malaysia Airlines operating as per normal, Mavcom monitoring operational and financial performance
KUCHING: Malaysia Airlines Bhd (MAB) is operating as per normal and that the group’s operational and financial performance are being monitored on a regular basis.
This is according to the Malaysian Aviation Commission (Mavcom) in a meeting with the investment community hosted by the research arm of Maybank Investment Bank Bhd (Maybank IB Research).
During the meeting, Maybank IB Research asked Mavcom for its thoughts on the event of a possible sizeable government assistance to MAB.
“Mavcom states that to its knowledge MAB is operating as per normal and the commission is monitoring MAB’s operational and financial performance on a regular basis,” the research arm said.
“However, if it happens, Mavcom states that there are three considerations that it has to tinker about given its role as an economic regulator under the MAVCOM Act 2015.”
These included observance of Part VII ( Competition) of the Mavcom Act 2015, compliance with Malaysia’s international obligations including air services agreements and the Government’s policy regarding subsidy and the impact on industry structure and consumers of a two-airline environment versus a three-airline environment (AirAsia and AirAsia X is regarded as one entity).
Meanwhile, on Malaysia’s level of air connectivity, Maybank IB Research highlighted that it is primarily focused on Asean and Asia Pacific destinations.
“For example, in 2018 there was some decent growth to North Asian destinations such as to China, South Korea and Japan. Beyond this, Malaysia has added limited direct international connectivity and Mavcom believes that it won’t change over the medium term.
“This is the reality of the Malaysian aviation whereby it is not a commercial hub in the likes of Singapore and Hong Kong and nor is it a tourist leisure hub like Bangkok.
“This is not necessarily a bad thing as there are still many uncharted destinations within the confines of the Asia Pacific region and the Indian subcontinent.”