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Mavcom has failed the aviation sector

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KUALA LUMPUR, Sept 9 AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes has claimed that the Malaysian Aviation Commission (Mavcom) has failed the countrys aviation sector, backing it with seven reasons, among others introducing bureaucratic policies.

 

Some of the requirements imposed by Mavcom include airlines notifying other local airlines on new route applications which is a time-consuming and unnecessary process; a three times a week limit on submissions of route applications; and the introduction of a six-month 'cooling-off' period for re-submission of rejected applications, he said.

 

 

In the latest round of attack on the commission, Fernandes claimed that Mavcom, on many occasions, rejected several route applications even though bilateral traffic rights are available with other countries.

 

In other words, Mavcom is rejecting applications on bilaterally-unrestricted routes. This is a blatantly unfair practice, he posted on LinkedIn, a social media platform geared towards professionals.

 

In the past, the Ministry of Transport (MoT) granted approvals as long as Air Service Agreements are in place. And it is definitely not Mavcoms function to determine whether airlines will ultimately utilise the approved traffic rights, he said in the post entitled: Mavcom A dysfunctional entity.

 

More:

https://www.malaymail.com/news/malaysia/2019/09/09/mavcom-has-failed-the-aviation-sector-says-airasia-boss/1788821

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Why do we need mavcom? Paying huge salaries to political appointees?

 

Without MAVCOM, AirAsia could do like what they did back in 2012 when they closed down their European routes & left their passengers to flap in the wind, and not get any penalty from it. Without MAVCOM, AirAsia could hoard all the route rights they want & not use them.

 

So yes, we bloody need MAVCOM. All it needs is tweaking for optimization purposes.

 

Tony, stop asking for tongkats!

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What has MAVCOM done about poor airport services like the system breakdown last month? Not even an investigation ... No talk about imposing penalties. Nothing!

Why do we need mavcom? Paying huge salaries to political appointees?

I have said time and time again - it is redundant. Most of its functions could be done by CAAM (like other countries). Consumer protection should be the job of the Ministry of Domestic Trade.

 

They have failed to protect pax against poor performance by airports. They have also failed to draw up aviation standards. We only need to see how consumers are protected in the EU to know that MAVCOM has not even started on the consumer rights work yet.

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What has MAVCOM done about poor airport services like the system breakdown last month? Not even an investigation ... No talk about imposing penalties. Nothing!

 

Just because there's no talk about investigation, doesn't mean there's no investigation. Besides, do you really expect an investigation into a matter as complex as that would take less than a month?

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Just because there's no talk about investigation, doesn't mean there's no investigation. Besides, do you really expect an investigation into a matter as complex as that would take less than a month?

Our government departments are all very good at talking. MAVCOM seems to be dumb in comparison. I dare say that if there was an investigation, they would have trumpeted that they are hard at work on it.

 

I am of the opinion that they are leaving the work to the polis. But investigating to protect consumers from future occurrences is not on their agenda.

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Supposedly bilateral agreement already obtained, are airlines allowed to start and stop abruptly like the BKI - BWN route by AK?

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Without MAVCOM, AirAsia could do like what they did back in 2012 when they closed down their European routes & left their passengers to flap in the wind, and not get any penalty from it. Without MAVCOM, AirAsia could hoard all the route rights they want & not use them.

 

So yes, we bloody need MAVCOM. All it needs is tweaking for optimization purposes.

 

Tony, stop asking for tongkats!

Or without it, the full service cannot limit the low-cost’s threat?

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Without MAVCOM, AirAsia could do like what they did back in 2012 when they closed down their European routes & left their passengers to flap in the wind, and not get any penalty from it. Without MAVCOM, AirAsia could hoard all the route rights they want & not use them.

 

So yes, we bloody need MAVCOM. All it needs is tweaking for optimization purposes.

 

Tony, stop asking for tongkats!

 

As mentioned by flee; regulatory could be by CAAM and consumers protection by Ministry of Domestic Trade.

 

Bloated remuneration to political appointees is a burden to tax payers and we could do with less tax.

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a burden to tax payers and we could do with less tax.

Since the govt. is now imposing an exit tax, the Mavcom tax should be abolished.

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How timely :)

 

MAVCOM Imposed Penalties on Air Asia Group

 

 

Why do we need mavcom? Paying huge salaries to political appointees?

Have you checked out MAVCOM's "Senior Management" page? Hardly political appointees, especially the Director, Economics :) Do you have a better qualification than them to say that they are just receiving huge salaries (and do you even know what their salaries are?) :)

 

So it's ok for an airline to flood the capacity to kill competitors and then raise air fares once they have the monopoly on the route?

 

We only need to see how consumers are protected in the EU to know that MAVCOM has not even started on the consumer rights work yet.

Should we force ex-MY based flights to pay out 600€ if the delay is more than 4 hours? I am all for it :) We do have some rights for resolving passengers issues in Malaysia. SG doesn't even have a organization to file your complaint to (not that I am aware of).

 

 

As mentioned by flee; regulatory could be by CAAM and consumers protection by Ministry of Domestic Trade.

MAVCOM was the one who approved the SQ-LHG JV for Malaysia market. CAAM and Ministry of Domestic Trade doesn't do that job. Read their analysis here to understand why MAVCOM was needed. But if you think CAAM can do that job, maybe we should expand CAAM and Ministry of Domestic Trade instead?

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How timely :)

 

MAVCOM Imposed Penalties on Air Asia Group

 

 

Have you checked out MAVCOM's "Senior Management" page? Hardly political appointees, especially the Director, Economics :) Do you have a better qualification than them to say that they are just receiving huge salaries (and do you even know what their salaries are?) :)

 

So it's ok for an airline to flood the capacity to kill competitors and then raise air fares once they have the monopoly on the route?

 

Should we force ex-MY based flights to pay out 600€ if the delay is more than 4 hours? I am all for it :) We do have some rights for resolving passengers issues in Malaysia. SG doesn't even have a organization to file your complaint to (not that I am aware of).

 

MAVCOM was the one who approved the SQ-LHG JV for Malaysia market. CAAM and Ministry of Domestic Trade doesn't do that job. Read their analysis here to understand why MAVCOM was needed. But if you think CAAM can do that job, maybe we should expand CAAM and Ministry of Domestic Trade instead?

 

Mavcom also came under fire after it was revealed that its former executive chairperson Tan Sri Gen (Rtd) Abdullah Ahmad was paid with an exorbitant monthly salary of RM85,000, which is more than four times the monthly pay package paid to the PM.

 

Dr Nungsari Ahmad Radhi, a prominent economist and former Umno politician, subsequently replaced Abdullah as the new executive chairman.
In his new role, Nungsari agreed to take a pay cut in the monthly pay package, which is set at RM15,000, equivalent to an 82.35% or RM70,000 reduction in the monthly salary earned by his predecessor.

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As mentioned by flee; regulatory could be by CAAM and consumers protection by Ministry of Domestic Trade.

 

Bloated remuneration to political appointees is a burden to tax payers and we could do with less tax.

 

CAAM is already looking into regulations. MAVCOM's role is to execute said regulations for commercial aviation. Having MAVCOM frees CAAM to have a better oversight into the bigger picture.

 

In any case how do you know that the remuneration is bloated? Just because he is paid RM 85,000 a month doesn't mean it's bloated if it's accompanied by qualifications. Would you work for less just because?

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How timely :)

 

MAVCOM Imposed Penalties on Air Asia Group

 

 

Have you checked out MAVCOM's "Senior Management" page? Hardly political appointees, especially the Director, Economics :) Do you have a better qualification than them to say that they are just receiving huge salaries (and do you even know what their salaries are?) :)

 

So it's ok for an airline to flood the capacity to kill competitors and then raise air fares once they have the monopoly on the route?

 

Should we force ex-MY based flights to pay out 600€ if the delay is more than 4 hours? I am all for it :) We do have some rights for resolving passengers issues in Malaysia. SG doesn't even have a organization to file your complaint to (not that I am aware of).

 

MAVCOM was the one who approved the SQ-LHG JV for Malaysia market. CAAM and Ministry of Domestic Trade doesn't do that job. Read their analysis here to understand why MAVCOM was needed. But if you think CAAM can do that job, maybe we should expand CAAM and Ministry of Domestic Trade instead?

For Singapore, the consumer can file dispute with Small Claim Tribunal or Consumers Association of Singapore (CASE).

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CAAM is already looking into regulations. MAVCOM's role is to execute said regulations for commercial aviation. Having MAVCOM frees CAAM to have a better oversight into the bigger picture.

 

In any case how do you know that the remuneration is bloated? Just because he is paid RM 85,000 a month doesn't mean it's bloated if it's accompanied by qualifications. Would you work for less just because?

 

 

 

Mavcom also came under fire after it was revealed that its former executive chairperson Tan Sri Gen (Rtd) Abdullah Ahmad was paid with an exorbitant monthly salary of RM85,000, which is more than four times the monthly pay package paid to the PM.

 

 

 

The issues, on top of Mavcom’s RM25 million operational costs per annum, had prompted many to question the enforcement agency’s role.
Its function can also be seen as overlapping with CAAM, which plays the role of a technical regulator.
CAAM was created as an autonomous regulator to oversee safety, maintenance and security aspects of the industry, taking over the former functions of the Department of Civil Aviation.

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Not belittling their effort in raising consumers' awareness of their rights, and making relevant aviation policies, it seems MavComm has indeed quite a huge expenses to cover. Assuming each director's salary is RM15,000. There are six of them in MavComm now, that's 1.08 million a year for directors' salary alone. Not forgetting their employees' salary and rental at Menara 1 Sentrum which is exorbitant. Since this is an contentious issue, why not MavComm be folded under the MoT to follow government salary band, or (diperbadankan) like Ministry of Domestic Trade and Consumer Affairs's MyIPO, self generating their own revenue.

 

I don't remember Singapore having two separate entities to handle the governance and administration of their aviation sector.

 

https://www.caas.gov.sg/who-we-are/areas-of-responsibility

 

For their consumers who have dispute, they have a small Claims Tribunal to file dispute, which I believe is very effective in dealing with aviation service providers.

Edited by JuliusWong

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Mavcom is like SPAD, a redundant body. It was created because the previous government ran out of funds to expand the DCA. They created CAAM and Mavcom so that they can have the authority to raise more funds separate from the government budget.

SPAD was reabsorbed by the MoT but they somehow don't know what to do with Mavcom.

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Not belittling their effort in raising consumers' awareness of their rights, and making relevant aviation policies, it seems MavComm has indeed quite a huge expenses to cover. Assuming each director's salary is RM15,000. There are six of them in MavComm now, that's 1.08 million a year for directors' salary alone. Not forgetting their employees' salary and rental at Menara 1 Sentrum which is exorbitant. Since this is an contentious issue, why not MavComm be folded under the MoT to follow government salary band, or (diperbadankan) like Ministry of Domestic Trade and Consumer Affairs's MyIPO, self generating their own revenue.

 

I don't remember Singapore having two separate entities to handle the governance and administration of their aviation sector.

 

https://www.caas.gov.sg/who-we-are/areas-of-responsibility

 

For their consumers who have dispute, they have a small Claims Tribunal to file dispute, which I believe is very effective in dealing with aviation service providers.

 

Mavcomm pay scale is multiple of gomen. favourite head honchos could spend a short stint here and rewarded with extraordinary pensions.

Edited by KK Lee

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Regardless of who's in power, there will always be people who think their money is being wasted, the people invovled are overpaid, the money should be channelled into some altruistic project instead, our taxes are too high, how Singapore does a better job at everything, etc.

 

These are usually the people who then find something else to moan about, like how wages are too low in this country, how Singapore is better in every other way, how other countries have XYZ agency that we don't (after we just shut it down), etc.

 

If you think about it, there's really no way the government can spend money without attracting some form of criticism. Spend money on the poor? You'll get people saying someone is getting rich out that endeavour, favouring a certain segment of society, wasting my money etc. This sort of whining happens even in our beloved neighbour across the Causeway..

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KUALA LUMPUR, Sept 9 AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes has claimed that the Malaysian Aviation Commission (Mavcom) has failed the countrys aviation sector, backing it with seven reasons, among others introducing bureaucratic policies.

 

Some of the requirements imposed by Mavcom include airlines notifying other local airlines on new route applications which is a time-consuming and unnecessary process; a three times a week limit on submissions of route applications; and the introduction of a six-month 'cooling-off' period for re-submission of rejected applications, he said.

 

 

In the latest round of attack on the commission, Fernandes claimed that Mavcom, on many occasions, rejected several route applications even though bilateral traffic rights are available with other countries.

 

In other words, Mavcom is rejecting applications on bilaterally-unrestricted routes. This is a blatantly unfair practice, he posted on LinkedIn, a social media platform geared towards professionals.

 

In the past, the Ministry of Transport (MoT) granted approvals as long as Air Service Agreements are in place. And it is definitely not Mavcoms function to determine whether airlines will ultimately utilise the approved traffic rights, he said in the post entitled: Mavcom A dysfunctional entity.

 

More:

https://www.malaymail.com/news/malaysia/2019/09/09/mavcom-has-failed-the-aviation-sector-says-airasia-boss/1788821

 

KUALA LUMPUR: The Malaysian Aviation Commission (MavCom) fined AIRASIA BHD and AirAsia X Bhd RM200,000 each for charging credit card, debit card and online banking processing fees separate from their base fares.
MavCom said in a statement on Tuesday the fees charged by the airlines contravened the Malaysian Aviation Consumer Protection Code 2016 (MACPC).
Could this the reason for TF's earlier outburst?

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No wonder TF suddenly removed the processing fee recently. Bank Negara should impose fines on them too for collecting processing fee, cc/debit card fee. damn, how many hundred millions have they collected or is collecting.

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