MAVCOM’S implementation of measure eases COVID-19 impact on airlines

KUALA LUMPUR, 19 April 2021 – The Malaysian Aviation Commission (MAVCOM) recently released  its first quarter Air Traffic Rights (ATR) report. The report encapsulates MAVCOM’s ATR allocations for  the Malaysian civil aviation sector from 1 January to 31 March 2021. 

ATR applications in the first quarter of the year recorded a 100 per cent approval from the Commission  on the 24 ATR applications received from airlines. Of this, 21 ATR allocations were for international  routes, while the remaining three were for domestic routes.  

The ATR application rate reduced by 51.7 per cent in contrast with the 43 ATR applications in the final  quarter of 2020. There was also a 33.33 per cent increase compared with the corresponding period of  the previous year (Q12020) with 18 ATR applications. 

Of the 24 ATR approvals for Q12021, MyJet Xpress Airlines Sdn. Bhd. received the highest number of  approvals, totalling 12 ATRs. Malaysia Airlines Berhad, AirAsia Group and Raya Airways Sdn. Bhd. followed with six, four and two ATR approvals, respectively.  

The quarter noted extraordinary circumstances, whereby no expiration of ATRs were recorded due to  the implementation of measures by the Commission to ease challenges faced by the airlines during the  pandemic. MAVCOM eased a condition of the ATR which automatically revokes unutilised ATRs within  six months from the date of the ATR approval, effective since 5 June 2020. This ease of condition was  implemented to facilitate the airlines’ administrative and regulatory challenges and enabled them to  keep their current ATR portfolio active. This marks the second consecutive quarter without any  expiration of ATRs. 

However, this does not apply to ATRs that have been deemed expired and automatically revoked, as  well as ATRs for routes that airlines have wilfully terminated on their own accord. 

MAVCOM’s Executive Chairman, Datuk Seri Hj. Saripuddin Hj. Kasim said, “In view of the COVID-19  impact, the Commission recognises and continues to analyse the challenges faced by airlines. We are  pleased to note that the eased condition provided to airlines is able support the continued recovery of  the sector as it gradually prepares for resumption of full services in the future. Coupled with this, the  Commission continues to observe a healthy growth of the cargo segment given the accelerated and  increased demand for logistics needs. This demonstrates the agility and resilience of the sector in  overcoming the pandemic as we look forward to positive development for the nation’s aviation sector.”

The Air Traffic Rights Report is released on a regular basis and more information can be found on MAVCOM’s website at www.mavcom.my.