‘Mavcom’s cash reserves enough to sustain operations beyond 2020’
KUALA LUMPUR: The Malaysian Aviation Commission’s (Mavcom) cash reserves should be enough to sustain its operations beyond this year.
This is despite the lower collection of the regulatory services charge (RSC) following the drop in air travel demand, according to market observers.
“We are continuing our duties to safeguard the rights of consumers, in accordance with the Malaysian Aviation Commission Act 2015, while being cognisant of the developments in the country and industry.
“Responsible financial management within the commission is also a key element,” a Mavcom spokesman told the New Straits
Times recently.
Mavcom said the RSC collection helped fund its operations and allowed it to function effectively as an independent regulator.
“In 2018, we generated a total income of RM26.2 million, of which RM24.7 million came from RSC collection.”
Mavcom said its cash balance stood at RM23.7 million as at Dec 31, 2018.
“Last year’s financial statements will be made public once the audit has been completed by the National Audit Department and the report sent to Parliament.”
Mavcom recently lowered its forecast for Malaysia’s passenger traffic this year to between 67.7 million and 69.7 million, a contraction of between 36.2 and 38.1 per cent from last year.
It said the revised forecast was due to flight cancellations faced by both Malaysian and foreign carriers totalling 14 million seats this year, with seat reductions of 15 per cent for domestic routes and 20 per cent for international routes.
Mavcom said its operating expenditure for 2018 stood at RM25.7 million.
“Our operational costs included staff costs and costs related to our regulatory and consumer protection initiatives.”
Mavcom said it had undertaken several initiatives in 2018, including the development of an airport funding model for Malaysia’s airports, an airport quality of service framework to elevate service levels and an economic master plan for the aviation industry.
“We have resolved 6,283 consumer complaints between March 1, 2016 and Feb 29 this year and processed 99.8 per cent of the said complaints.
“We also launched the AeroFile, a platform to reduce the timeline for air filing applications from 28 days to two days; introduced FlySmart, an initiative to educate colnsumers on their air travel rights; and, continued to refine the Malaysian Aviation Consumer Protection Code 2016,” it said.