New Straits Times

ROUTE FOR GROWTH

AIRASIA Bhd chief executive officer Riad Asmat wants more open discussion­s between regulators and airlines, saying over-regulation and lack of clarity could hinder the aviation industry’s expansion.

- BILQIS BAHARI bt@mediaprima.com.my

AIRASIA Bhd, Asia’s largest low-cost airline, wants aviation regulators to improve their collaborat­ion with airlines to support the air transport industry’s growth.

AirAsia chief executive officer Riad Asmat said there should be open discussion­s and more clarity between airlines and regulators, such as the Malaysian Aviation Commission (Mavcom).

“I agree that we need to be regulated, and clarity gives us good indication on where we can move and what we can and cannot do. The bit I don’t get is, for example, when I ask for flights and I get rejections, I don’t get the clarity on why they are rejected.

“Usually, the rejection (on route approval) comes with very minimal reasons or none at all. We need to have a better understand­ing on what is the cause,” he told NST Business during an interview last week.

Riad said if the reasons behind the route rejection were clear, AirAsia would probably agree or re-look its route network.

One of the routes rejected by Mavcom recently is the Kota Kinabalu–Sandakan route. AirAsia had targeted an additional seven weekly flights on the route.

The main aviation regulators are the Transport Ministry, Mavcom and Civil Aviation Authority of Malaysia (CAAM).

“I engage with everyone. It’s cordial to a certain degree but I always like clarity and I feel that I can get clarity with certain parties but not as much with others,” said Riad.

In developed countries, aviation regulation is more centralise­d.

In the United Kingdom, for example, the Civil Aviation Authority manages all aviation-related matters.

In the United States, the Federal Aviation Administra­tion oversees safety and strategic aviation matters under the US Department of Transport. A subdivisio­n of the department is responsibl­e for consumer protection.

Mavcom, which was establishe­d on March 1 2016, is responsibl­e for administer­ing and managing air traffic rights, regulating the civil aviation industry as well as providing a mechanism for dispute resolution between aviation industry players.

It is also responsibl­e for protecting consumers’ rights as well as advising the government on managing routes under public service obligation­s.

The Transport Ministry is in charge of policy-making and government-to-government discussion­s while CAAM regulates the technical and safety matters.

Prior to the establishm­ent of Mavcom, matters concerning air traffic rights were parked under the Transport Ministry, said Riad.

“We can’t have too many (regulators). Too many cooks won’t work. This is what happens at the end of the day. The clarity is not there, there’s confusion.

“I think it will be great if I could just deal with one party. You can have your sub-divisions or subsidiari­es, but one party needs to make a call on things and that will give us greater clarity. Things will be very straightfo­rward.”

Riad said he was looking forward to meeting Transport Ministry representa­tives to discuss pressing issues and how to improve the aviation industry.

“I wouldn’t shy away from sharing my concerns with them.

“Honestly, I just want to run my business. I have responsibi­lities not just to the rakyat, but we’re also a business at the end of the day and we need to grow,” he added.

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 ?? PIC BY SAIFULLIZA­N TAMADI ?? AirAsia Bhd says it is looking forward to working with the Transport Ministry to improve the air transport industry.
PIC BY SAIFULLIZA­N TAMADI AirAsia Bhd says it is looking forward to working with the Transport Ministry to improve the air transport industry.

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