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Pent-Up Demand in Asia Pacific Region Contributes to Uptrend in ATR Applications

KUALA LUMPUR, 8 NOVEMBER 2022 – The Malaysian Aviation Commission (MAVCOM) today released its Air Traffic Rights (ATR) report for the third quarter of 2022 (Q3 2022) spanning 1 July to 30 September 2022. The report outlines the Commission’s ATR allocations for the Malaysian civil aviation sector during this period.

In Q3 2022, the Commission received a total of 38 ATR applications consisting of 33 international and 5 domestic routes. According to the Commission, the ATR allocation rate continues to improve as the aviation industry recovers, as reflected in the 18.8 per cent increase in applications received compared to the previous quarter (Q2 2022) and a significant jump of 81 percent compared to the corresponding period in the previous year (Q3 2021). 

MAVCOM’s Executive Chairman, Datuk Seri Hj. Saripuddin Hj. Kasim said, “The Commission is pleased to report a steady increase in ATR applications and approvals over the past year and for the past 3 quarters this year, which reflects positive progress in the recovery of the Malaysian aviation sector. This is attributed to the gradual re-opening of regional and international borders, the downward trend in the spread of COVID-19, the reactivation of aircraft by airlines, and an increase in passenger services to destinations with pent-up demand. Reflecting this, the majority of the ATR applications that we have received have been for destinations in the Asia Pacific region with 11 applications for ASEAN routes, 9 for routes in Asia, and 4 for Australasia destinations. We are optimistic that the nation’s aviation industry will continue to achieve progressive recovery.”   

For the quarter under review, the Commission approved 34 out of the 38 ATR applications received from airlines, with all domestic ATR applications receiving approval. Of the 34 ATRs approved by the Commission, Batik Air Malaysia and AirAsia X received the highest number of approvals, totalling 10 ATRs respectively. This was followed by MABKargo with 5 ATRs. Both Malaysia Airlines and World Cargo Airlines were granted 3 ATRs each, while AirAsia, MyJet Xpress, and Raya Airways obtained 1 ATR approval each.

MAVCOM takes a range of conditions into account when allocating ATRs, including public demand, quality of service, the economic viability of the proposed flights, competition levels, especially on international routes, as well as impact on Malaysia’s airports and the aviation industry, among others. 

According to the Commission, the cargo sector has witnessed growth in terms of the number of applications submitted and approved in 2022, with a total of 10 ATRs allocated for the cargo sector in Q3 2022. This was attributed to improved demand for cargo in ASEAN and China destinations. In terms of performance, ATR approvals for the cargo sector have increased by 25 per cent from Q1 2022 to Q3 2022, and 10 per cent from Q2 2022 to Q3 2022, alongside a 44.4 per cent jump compared to Q3 2021.  

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.