KUALA LUMPUR, Feb 11 ― The Malaysian Aviation Commission (Mavcom) has lowered its growth forecast in air traffic passenger this year following the global spread of the 2019-nCoV novel coronavirus.
Its chief operating officer Azmir Zain said it is now projecting growth at between 4.6 and 5.7 per cent, down from between 5.0 and 6.0 per cent previously.
“If you look at Thailand, for example, now 60 per cent of the seat capacity in Thailand are operated by Thai carriers, 40 per cent operated by foreign carriers.
“In Malaysia, 80 per cent of seat capacity is operated by Malaysian carriers, and 20 per cent by foreign carriers. Which means Malaysia’s (air passenger) traffic is very much dependant upon what the Malaysian carriers do and if carriers in Malaysia are those who are operating high or introducing a high number of seats in aircraft, then the country’s supply of aircraft and seats is very much dependant on what the Malaysian carriers do,” Azmir said when met by the press later.
Azmir was speaking to the press after the launch of Mavcom’s report to the government, titled “Economic Way Forward for the Civil Aviation Industry in Malaysia”, which was attended by the agency’s executive chairman, Nungsari Ahmad Radhi.
In the report, Mavcom said that the downgrading of the Civil Aviation Authority of Malaysia (CAAM) by the US Federal Aviation Authority (FAA) in April last year would have a “minimal direct impact” on passenger growth and the profitability of Malaysian airlines, in future.
“This is due to the low volume of passengers between the US and Malaysia. However, Malaysia is vulnerable to follow-up action from parties such as ICAO, EASA and other national civil aviation authorities.
“Restrictions imposed by these parties, especially from countries with substantial passenger traffic to and from Malaysia, may amplify the impact of CAAM’s downgrade on Malaysian carriers and the broader aviation industry value chain,” the report said.
ICAO refers to the International Civil Aviation Organisation while EASA refers to European Union Aviation Safety Agency.
The listing of CAAM as a Category 2 Aviation Regulator by the FAA came into effect on November 11 last year, following a review conducted in April.
The downgrade meant that airlines licensed by CAAM will not be able to add new routes to and from the United States.
CAAM later asked the FAA to reassess its classification of the Malaysian body into Category 2 Aviation Regulator within the next 12 months.
CAAM chairman Ahmad Ridzwan Mohd Salleh previously said that the classification was due to an FAA review carried out in April, as part of audits on regulators who oversee the operation of flights into the US.
