KUALA LUMPUR, Nov 12 — Economic Affairs Minister Datuk Seri Mohamed Azmin Ali today assured that the recent listing of the Civil Aviation Authority of Malaysia (CAAM) as a Category 2 aviation regulator by the US Federal Aviation Authority (FAA) will not have a major impact on Malaysia Airlines Bhd.

Azmin, however, pointed out that Malaysia must correct the negative perception in order to avoid future losses and to upgrade the aviation industry of the country.

The listing of CAAM as a Category 2 Aviation Regulator by the FAA came into effect on Monday following a review conducted in April this year.

The effect of the listing meant that airlines licensed by CAAM would not be able to add new routes to and from the United States.

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“I don’t think this would have any major impact.

“But the issue here is about perception because the concerns expressed by the authorities are against the regulator, not the airlines but now the perception is as if that would have a major impact on Malaysia Airlines and any airlines coming out of Malaysia ... so we need to correct that perception.

“This is about the regulator, who needs to address the issue highlighted by the authorities,” he told reporters in Parliament lobby today.

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Yesterday CAAM Chairman Ahmad Ridzwan Ahmad Salleh stressed that the categorisation is not an assessment of Airlines, Airports or Air Traffic Services that fall under its purview.

Ridzwan said that plans are already well underway to address the findings of the audit and are aiming to restore it back to category 1.