Airline companies need to be evaluated, audited before ASL is issued, says Loke

KUALA LUMPUR: 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 Siew Fook.

He said 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 during the question and answer session at the Dewan Negara sitting on Thursday (Dec 7).

He was responding to a supplementary question from Senator Datuk Kesavadas A. Achyuthan Nair on the aspects being looked into to ensure that airline companies meet the licensing requirements before and after commencing operations.

Loke further said that this would provide protection to passengers who purchase air tickets and ensure that what happened to MYAirline before will not recur.

Earlier, Loke said that Mavcom will not require new or existing airlines that have obtained the ASL 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 in reply to a question from Senator Datuk Seri S. Vell Paari. – Bernama

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