New and existing airlines must go through an evaluation and audit process by various levels within the Malaysian Aviation Commission (Mavcom) before they can obtain or renew their Air Service Licence (ASL), said Transport Minister Anthony Loke.
Among the key aspects to be scrutinised is their financial capabilities, including their ability to sustain operations for three to six months.
“If their cash flow is not strong enough, their licence may not be renewed or will only be granted for a short period,” he said. Loke the aspects are being looked into to ensure airline companies meet the licensing requirements before and after commencing operations.
He added that this would protect passengers who purchase air tickets and ensure that what happened to MYAirline before will not recur.
Earlier, Loke said Mavcom will not require new or existing airlines which have obtained their ASLs to place a deposit with them.
“Such a condition is not practised in the aviation industry or by aviation authorities in any other countries,” he said.
