Industry / Public Service Obligations / MAVCOM’s Role in RAS

MAVCOM’s Role in RAS

MAVCOM is empowered to administer and manage Public Service Obligation (PSO) routes. In Malaysia, the principal example of PSO is the Rural Air Services which connect remote, sparsely populated, or otherwise inaccessible parts of Malaysia with the rest of the country.

Airlines that operate public service obligation routes may be entitled to receive funds from the Public Service Fund.

With the establishment of MAVCOM on 1 March 2016, the Commission is empowered to administer and manage PSO schemes in the aviation industry in Malaysia, while the Government of Malaysia, in particular the Ministry of Transport (MoT), remains the principal policy decision-maker.

MAVCOM had in 2016 carried out a Study on RAS and came up with recommendations for future policies related to PSO in Sabah and Sarawak. The aim of the Study was to:

  • Review the various aspects of the current RAS mechanism with the objective of delivering PSO in Sabah and Sarawak in the most efficient and effective manner;
  • Explore and recommend alternative options for the delivery of a more efficient and effective PSO mechanism in Sabah and Sarawak; and
  • Ensure the optimal use of government subsidies for the continued air intra-connectivity of Sabah and Sarawak.