Newsroom / News Releases / Air Traffic Rights Applications Jump by 210 Per Cent in Q2 2022

New Routes Approved as Airlines Explore New Sectors

KUALA LUMPUR, 25 JULY 2022 – The Malaysian Aviation Commission (MAVCOM) today published its quarterly Air Traffic Rights (ATR) report, which details the Commission’s ATR allocations for the Malaysian civil aviation sector for the period of 1 April to 30 June 2022. 

In the second quarter of 2022 (Q2 2022), the Commission reported a higher application rate, with a total of 32 applications submitted, comprising 28 international and 4 domestic routes. This reflected a 47.6 per cent increase in ATR applications from Q1 2022, and a significant 210 per cent increase compared to the corresponding period in the previous year (Q2 2021). This notable rise was driven by the reopening of Malaysia’s international borders in April 2022 coupled with airlines mapping out their international network to align with the reopening of international borders by other countries.

Additionally, the Commission reported that the jump in ATR applications in Q2 2022 was further supported by airlines exploring new sectors to strengthen their network. This was indicated by ATR applications for several new routes from secondary airports in Malaysia, namely Johor Bahru and Penang, to ASEAN destinations. The Commission also highlighted greater flight capacity into Australia and New Zealand by Malaysian carriers, particularly via the fifth freedom, from Indonesia to Australia, and Australia to New Zealand. 

MAVCOM’s Executive Chairman, Datuk Seri Hj. Saripuddin Hj. Kasim said, “As we chart our way through this post-pandemic period, the Commission remains committed to our role as a commercial and economic regulator of the Malaysian civil aviation industry. The aviation landscape remains challenging, but we are pleased to report a healthy increase in ATR applications, which signifies the steady recovery of airlines. Furthermore, we are happy to support the decision by airlines to explore new sectors as a recovery strategy with the approval of ATR for new routes such as Penang to Denpasar, Phnom Penh and Pekanbaru as well as Johor Bahru to Phnom Penh, Pekanbaru and Kualanamu.”  

For the quarter under review, MAVCOM approved 31 out of the 32 ATR applications received from airlines, representing a 96.8 per cent approval rate, which was higher compared to the 95.4 per cent approval rate reported for Q1 2022. Of the 31 ATR approvals, AirAsia received the highest number of approvals, totalling 11 ATRs, followed by Batik Air Malaysia and AirAsia X, which received 7 and 6 ATR approvals respectively. Both MY Jet Xpress Airlines and Raya Airways were awarded 3 ATRs each, and MABKargo was awarded 1 ATR approval.

Meanwhile, the cargo sector saw a slight decline with cargo ATRs comprising only 29 per cent of total ATRs issued in Q2 2022 as compared to the cargo ATRs awarded in Q2 2021, which represented 90 per cent of overall ATRs awarded. The Commission attributed the reduction to the revival of passenger services which brought with it belly space cargo capacity. Additionally, cargo air freight rates had also fallen from their record high rates in December 2021. However, the Commission notes that cargo air freight rates remain higher than the pre-COVID-19 rates, and the lack of cargo capacity in certain markets continues to signal potential growth in the cargo 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.