Regulator cuts Malaysia Airlines' air operator certificate duration

Kuala Lumpur : Malaysia's civil aviation regulator has cut the duration of Malaysia Airlines' air operator certificate to one year from three years, following a probe into technical issues faced by the state carrier, said Anthony Loke, Minister of Transport during a press conference on August 28.

Earlier, the airline's parent, Malaysia Aviation Group (MAG), announced on August 24, it plans to temporarily reduce flights and routes across its carriers until December 2024, after service disruptions earlier in August.

In June 2024, Malaysia's Civil Aviation Authority carried out an investigation into Malaysia Airlines that found several significant safety and maintenance issues including a shortage of skilled workers and mechanical components, said Minister of Transport Anthony Loke at the press conference.

In response, Malaysia Airlines has prepared a mitigation plan that will include an aggressive labour recruitment programme and a reduction to its third party maintenance, repair and operations services to focus more on its own aircraft, he informed.

"In order to ensure compliance with the mitigation plan, Malaysia Airlines has been directed to present a monthly report on the status of the plan," Loke said, adding that regulators will conduct an annual audit if the air operator certificate is to be renewed.

MAG reported a net profit for 2023 of RM 766 million (USD 176.4 million), its first net profit since it was formed in 2015 and the first since MAS last made a profit in 2010. MAG group has a fleet size of just over 100 aircraft, according to company and industry data.