REGULATOR DEFECTS
CEO TENDERED HIS RESIGNATION ON NOV 1
THE local aviation sector requires a comprehensive overhaul following the United States Federal Aviation Administration’s (FAA) decision to downgrade Malaysia’s air safety rating.
An expert said the Transport Ministry should conduct a review of the Civil Aviation Authority of Malaysia (CAAM) and approve a new flight path for a troubled sector to support Malaysia Airports Holdings Bhd’s and domestic carriers’ future needs.
Asian Aviation consultancy firm Aer Mobi chief executive officer Michael Walsh said it would be too easy to just replace CAAM’s chief executive officer upon completing an internal recruitment process.
“The regulator needs to address its operational and a deepening lack of resource issues with ‘poor’ execution.
“This is to ensure efficient management oversight and not just the safety and security of local civil aviation. To support new initiatives and future development of the national aviation policy, it requires a fundamental structural overhaul.”
CAAM on Monday said its CEO tendered his resignation on Nov 1, and in the interim, an executive committee of the board had been established to oversee operations.
It also acknowledged “some shortcomings” in carrying out its duties as an aviation regulator.
Walsh said CAAM lacked financial resources to attract and retain technical officers and inspectors since it made structural changes from being a public service to a commercial one.
“This is due to several factors, including inefficiencies in the processes and its budget being reduced further this year. It is unable to stand on its own two feet.”
He said the Transport Ministry should consider combining the resources of CAAM and the Malaysian Aviation Commission (Mavcom) into one regulatory commercial body, but with leading international and commercially-minded talent.
He said CAAM and Mavcom should seek financial assistance at least in the short term from the airport authority, economic bureau and the Selangor government.
“This is to put together a viable business plan and to meet the Shared Prosperity Vision 2030 to benefit Malaysians.
“Malaysia deserves a worldclass aviation sector that can adapt to a fast-changing environment that they can be proud of.”
He said CAAM lacked the talent and ability to adapt to a fastchanging environment with new technologies and customer demands from subsectors of the aviation industry.
“It is not just the Malaysian aviation sector that has experienced high turnover of experienced staff from within the civil service.
“There are trust and competence issues among the agencies, and a lack of strong leadership, mutual cooperation and cohesive planning for the short-, mediumand long-term vision.”
Walsh said any new leadership being considered for CAAM should seek external international assistance, whether it’s temporary in the form of consultancy experts or a fixed contract term from the likes of the United Kingdom-based National Air Traffic Control Services.
“The Transport Ministry can orchestrate a meeting of minds to assess CAAM’s future through an honest dialogue together with major stakeholders and the private sector.
“In doing so, they can come together in finding the right solution and balance.
“This is, after all, a people-driven business and morale has been low in the agency for some time.
“Under a new leadership and having a clear vision is an opportunity to tackle all of these issues at one time.”
He said the platform to achieve this dialogue existed in the shape of the National Aviation Council, which the Transport Ministry chaired and set up in November last year.
Malaysia Airlines Bhd (MAB) maintained that the rating downgrade would not affect its operations, including its codeshares to and from the US with several partner airlines, subject to the respective airline’s assessment and consideration.
MAB said it would have its operations (and codeshares) to and from the US limited to the existing levels at the time of the assessment.
The carrier said it would maintain the highest safety standards as certified by the International Air Transportation Association’s Operational Safety Audit, which had been continuously and successfully re-certified since 2005.
MAB said it would give its full support to CAAM to regain its Category 1 rating.