KUALA LUMPUR: The Civil Aviation Authority of Malaysia's (CAAM) decision to reduce Malaysia Airlines Bhd's air operator certificate (AOC) validity from three years to one year will only compound problems faced by the national carrier, former minister Khairy Jamaluddin said.
He said the decision is bound to send a wrong message to the airline's customers and partners.
Speaking on the Keluar Sekejap podcast, the former Health Minister described the decision as an overreaction.
"I think this is an overreaction because the airline's operations are not at a point where the AOC should be shortened.
"This reduction in AOC validity will have a continuous impact on the airline, in addition to the current problems they are facing," he said.
Citing the issue of ticket sales with the reduction of validity period, Khairy said the decision may also impact codesharing arrangements between Malaysia Airlines and its partners, further affecting the carrier's revenue.
Earlier this week, Transport Minister Anthony Loke Siew Fook said (CAAM) had conducted a special audit on the Malaysia Aviation Group Bhd following the recent spate of incidents involving its airlines.
He said following the audit, CAAM decided to cut Malaysia Airlines AOC validity to one year to ensure the airline complies with the mitigation plan that was announced by its parent company.
Loke said the challenges faced by MAG included disruptions in the aircraft parts supply chain, personnel changes, and a lack of staff, which might have affected some maintenance work.
Khairy said the ministry should find a balance between the issues faced and conduct a tighter audit on MAG annually.
"Again, it's about balance. The audit process could have been tightened while keeping the three-year period, perhaps with an annual review, rather than reducing the validity period to one year.
"I am concerned that CAAM's decision will double the problems faced by our national carrier. They are already dealing with supply chain issues, engine problems, and manpower shortages...and now this.
"Now they are facing a confidence crisis among customers and their partners.
"That's a judgment call, and that is my view. If I were the sitting minister, I would not have done that," he said.