KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) has said that it will cooperate in the Ministry of Transport's investigation into the licensing fiasco of MYAirline Sdn Bhd, in response to the Transport Minister's call for answers as to how the cash-strapped airline could have been awarded a license to operate an airline in the first place.
Mavcom has come under fire recently on whether it had done its due diligence in granting MYAirline an air service license (ASL) in 2022.
"Mavcom will fully cooperate with the investigations by the Ministry of Transport with regards to granting of ASL to MYAirline," Mavcom told Business Times in a statement.
Yesterday, Transport Minister Anthony Loke Siew Fook said the ministry is investigating how MYAirline had obtained its ASL in 2022.
He said Mavcom has to be answerable as the license was granted by the aviation regulator.
"Whether or not they have gone through a proper process and procedure, that is something that we need further investigation."
"This is definitely something that Mavcom has to be answerable. They have to be accountable in terms of the process of granting the (ASL) license," he said on Monday.
A company first needs to apply for an ASL from Mavcom before applying for an air operator certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM), to start operating as an air service operator in Malaysia.
Mavcom is tasked to review and analyse the air service operator's financial and commercial plan while CAAM is responsible over the technical aspect of the operator.
In order to obtain an ASL, the owner, shareholders and board of directors of an air service operator would have to go through Mavcom's "Fit and Proper Person" guidelines to see whether the accountable persons are fit to invest in an airline in Malaysia.
The guidelines are issued by Mavcom pursuant to section 98A(1) of the Malaysian Aviation Commission Act 2015 (Act 771) where Mavcom carries out the assessment on the key responsible persons of an airline or aviation service company.
The key responsible persons listed are the board of directors, senior management team, any other person who directly or indirectly holds 10 per cent of more share of the company.
It also includes persons who has the power to make business or administration decisions and any other key person as may be determined by Mavcom.
In its "Guideline on Fit and Proper Person", Mavcom would "assess the fitness and propriety of a person in the following areas – probity, reputation and integrity; competency and capability; and financial integrity."
"The commission will also look into past behaviour as insight into a person's future conduct," according to Mavcom' s guideline.
MYAirline's majority shareholder and owner Datuk Goh Hwan Hua has been on the authorities' radar for the past two years for alleged dubious activities including alleged scams and money laundering.