Malaysian Aviation Commission revokes Eaglexpress Air Service Permit

20 Dec, 2016

Kuala Lumpur, 20 December 2016: The Malaysian Aviation Commission (“MAVCOM” or “Commission”) today revoked Eaglexpress Air Charter Sdn Bhd’s (“Eaglexpress”) Air Service Permit (“ASP”).

With the revocation of the ASP, Eaglexpress shall not undertake to carry by air or use any aircraft for the carriage of passengers, mail or cargo for hire or reward on a non-scheduled journey over domestic or international routes. If the airline continues to provide such services, it will have committed an offence under the Malaysian Aviation Commission Act 2015 [Act 771].  Eaglexpress’ ASP shall have no effect from 21 December 2016.

On 30 August 2016, MAVCOM granted Eaglexpress an ASP effective for a period of 12 months (from 1 September 2016 up to 31 August 2017) with specific conditions imposed by the Commission to be complied with by the airline within stipulated timeframes. Eaglexpress has failed to comply with the said conditions within the stipulated deadlines.

On 1 December 2016, MAVCOM issued a show cause letter to Eaglexpress giving it opportunity to provide written representations.

Eaglexpress submitted its representation in writing to MAVCOM on 14 December 2016. However, upon reviewing the said written representations, MAVCOM has decided to revoke the ASP as the representations made were not satisfactory. The airline has failed to provide sufficient evidence for the Commission to believe that it will be able to resolve all concerns raised and to comply to the conditions imposed.

As an independent economic regulatory body established pursuant to the Malaysian Aviation Commission Act 2015 (Act 771), MAVCOM’s mission is to promote a commercially viable, consumer-oriented and resilient civil aviation industry that supports Malaysia’s growth.

“This latest episode with Eaglexpress, as well as the earlier case with Rayani Air should be a clear indication to potential and current industry players that operating an airline (chartered or scheduled) is extremely challenging and requires a high degree of planning, financial depth, operational know-how and execution competency to stand any chance of succeeding.

“We wish to reiterate that a robust commercial foundation and depth are therefore necessary prerequisites to be a player in this industry – regardless of whether it is an ASP or Air Service Licence (ASL) holder. The Commission will strive to ensure only enterprises that are equipped and ready will be allowed to participate,” said YBhg. Gen. Tan Sri Dato’ Sri Abdullah Ahmad RMAF (R), Executive Chairman of MAVCOM.

MAVCOM, which began operations on 1 March 2016, is also responsible for airline licensing, airport charges, route allocation, dispute resolution and consumer protection, among others.