The Civil Aviation Authority of Malaysia (CAAM) has suspended the Air Operator Certificate (AOC) of MYAirline Sdn. Bhd. (MYAirline) for a period of 90 days, effective immediately.
This decision comes after last week’s announcement by the Malaysian carrier that it was ceasing flight operations until further notice.
The AOC suspension by the Malaysian regulator has been made in accordance with Regulation 193 (3) of the Civil Aviation Regulations 2016, pending further investigations by CAAM.
Understanding the Role of CAAM
CAAM, as the technical regulator of the Malaysian aviation industry, holds a pivotal role in ensuring that all air operators meet universal safety and security standards.
The AOC issued by CAAM authorizes air operators to engage in specific aircraft operations. The issuance and renewal of an AOC involve a thorough assessment of an air operator’s capabilities in conducting safe operations in accordance with operational specifications.
The AOC Renewal Process
As part of the AOC renewal process, CAAM conducts a detailed safety audit to assess the competence of air operators in areas such as commercial air transport, operations, and airworthiness.
This audit is a crucial step in ensuring that airlines continue to meet the required safety standards. In the case of MYAirline, a safety audit was conducted from 29th May 2023 to 1st June 2023.
At that time, no findings indicated financial distress within the airline, meeting the international standards set by the International Civil Aviation Organization (ICAO) Document 8335.
Financial Solvency Requirement
The safety audit process also includes elements of the financial indicator checklist, as per ICAO Document 8335.
Air operators, including MYAirline, must demonstrate financial solvency to CAAM. This requirement ensures that air operators have the financial resources necessary to conduct planned operations.
In the event of any financial issues, immediate notification to CAAM is mandatory to prevent any compromise to the safety of operations.
MYAirline Sudden Suspension
This has raised serious concerns about public safety and the overall integrity of civil aviation operations in Malaysia. The abrupt operational suspension decision by the carrier has left many puzzled and seeking answers.
MYAirline has announced in a press conference today that it is acknowledging all issues associated with the airline’s decision to suspend operations and that it has taken steps to ensure the recovery of the airline.
“We acknowledge and understand the frustration experienced by our passengers,” Dato’ Sri Azharuddin A. Rahman, MYAirline’s Interim Accountable Executive emphasized. “This situation arose due to our lack of a contingency plan, compounded by a last-minute investor withdrawal.”
The carrier also acknowledged its communication shortcomings with both the Malaysian Aviation Commission (MAVCOM) and the Civil Aviation Authority of Malaysia (CAAM); specifically the failure to engage with authorities and passengers in a timelier manner before deciding to temporarily suspend operations.
Safety Audit to be Carried Out
In light of the suspension, CAAM has announced that a detailed safety audit will be carried out during this temporary suspension to reassess MYAirline’s capability.
The findings of this audit will be crucial in determining the future of MYAirline’s AOC.
Any violations by AOC holders are dealt with in accordance with the Civil Aviation Regulations 2016 and Civil Aviation Directives (CAD). CAAM emphasizes the importance of license holders upholding their obligations to regulations and ensuring strict compliance.
Did you know AviationSource has two newsletters? One covers the general news and analysis of the industry as a whole, and the other to do with emergencies that take place throughout the year! To subscribe to our General News Newsletter, CLICK HERE! To subscribe to our Emergencies, Accidents & Incidents Newsletter, CLICK HERE!