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.
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.