AirAsia may close down business by April 2013 for not meeting regulatory standard!


AirAsia did not meet regulatory standard?

November 23, 2012 by weechookeong

AirAsia granted 6 months to operate flights

Posted on 23 November 2012 – 05:36am

Presenna Nambiar
sunbiz@thesundaily.com

PETALING JAYA (Nov 23, 2012): AirAsia Bhd has been granted with an air operator’s certificate (AOC) by the Department of Civil Aviation (DCA) to fly for another five months — instead of a two-year period — for not meeting regulatory standards, said sources.

The current AOC is valid until April 2013.

Sources told SunBiz that AirAsia had only obtained a six-month AOC — an approval granted from the DCA to an aircraft operator to allow it to use aircraft for commercial purposes — after periodical audit findings by DCA showed shortcomings in AirAsia’s flight operations procedures and practices including flawed communications between flight operations and pilots, an outdated manual and flight operations not in keeping with the manual.

The six-month period allows for AirAsia to work with the DCA to bring its flight operations procedures and practices up to mark.

It is also understood that AirAsia’s head for flight operations has been changed due to the action.

Three key posts in an airline are nominated with the approval of the DCA, namely the head for flight operations, engineering maintenance system and crew training.

“The fact that they have not grounded AirAsia aircraft shows that it’s not a serious safety issue, but this action still serves as a warning,” one source told SunBiz.

Scheduled commercial airlines based in Malaysia are awarded two-year renewals of AOC by DCA.

In other markets, depending on the track record of the airline, AOCs can be valid for up to five years before a renewal is due.

While the audit is a biennial affair, the DCA conducts inspections on airlines at least once a year.

According to another source, a two-year renewal is given if airlines meet standards set by the regulator. Otherwise they are given a period of time, depending on the issue, to comply before a renewal of AOC is given, or it is revoked entirely.

In the event of a withdrawal of an AOC, the airline can work to meet standards set and re-apply for an AOC which will have to be approved by the Cabinet.

AirAsia and DCA officials did not respond to questions sent via e-mail, as at press time.

An industry observer said it is unlikely that AirAsia will let the situation progress to an outright withdrawal of AirAsia’s AOC, ultimately grounding its flights.

“They (AirAsia) will definitely address whatever issues DCA have and make sure they bring in the right people and fire the wrong people, because too much is at stake.”

He added that while the action taken by DCA is unlikely to have any financial impact on AirAsia as a company, it may impact its reputation as an airline and its ability to secure the best deals for financing in the future.

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5 thoughts on “AirAsia may close down business by April 2013 for not meeting regulatory standard!

  1. The truth finally prevails.
    We have been warned since 2008 of these LCC suicide physchos.

    ”I know Malaysians very well,” said Fernandes, a native of Malaysia. “If you put a fare low enough, they’ll risk their lives,” he said, as the crowd laughed.

    Kelleher, who was also accepting a lifetime achievement award at the conference, said the airline industry is historically risky and prone to losses. Asked whether he was planning to start another airline, Kelleher joked: “If the thought entered my mind, I’d buy a pistol.”

    Ref: http://www.columbusdispatch.com/live/content/business/stories/2008/09/24/airline.html?sid=101

    • Dear Con Air,

      Truly the evidence of our investigative reports have finally surfaced out of Tony Fernandez’s underground work. We pray for MAS to survive than AirAsia.

      Low Cost Carriers mushrooms and dies with its lifespan that is not more than 10 years. The need to affiliate and collaborate with Full Service Carriers is significant for AirAsia’s survivability. The reason is simple i.e. Everyone Do Not Want To Die Young. Cheers!

    • Dear Maxim,

      This post isn’t that nuisance but extremely alarming. Our job is to expose the inner truth of what’s going inside AirAsia by the King of Biggest Scams i.e. Tony Fernandez. The people who work very closely with him have reported back to us. Please read our posts and picture what these workers have gone through under the sly hands of Tony Fernandez – A heartless business man who nears bankruptcy status since 2008. To rescue his AirAsia, he needs to KILL Malaysia Airlines’s subsidiary which is Firefly that had eaten millions of AirAsia’s passengers. His greed is to own a National Carrier in Malaysia and Malaysia Airlines is a National Carrier flag for Malaysia.

      The emergence of Malindo Air (MAL & INDO) has sliced him of the size of pie in the regional markets even before it start competing. Our valuable information in this site have been a threat to him.

      We suggest those of you who have the shares should be dumping it now. Follow the rich Knight who dumped his shares a few months ago to be saved.

      AirAsia’s shares opens at 2.83 today from 3.56 (last year). The fact is the shares are dropping each year.

      Stay tuned to malaysiaairlinesfamilies JV with airasiafamilies. Cheers!

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