KUALA LUMPUR: Eaglexpress Air Charter Sdn Bhd has become the second airline to lose its licence this year after it failed to comply with certain conditions imposed by the Malaysian Aviation Commission (Mavcom) within the stipulated deadlines. In a statement yesterday, Mavcom said Eaglexpress’ air service permit (ASP) is no longer usable effective today.
“With the ASP revocation, Eaglexpress shall not undertake to carry by air or use any aircraft for the carriage of passengers, mail or cargo for hire or reward on a non-scheduled journey over domestic or international routes. If the airline continues to provide such services, it will have committed an offence under the Malaysian Aviation Commission Act 2015 (Act 771),” it stated.
On Aug 30, 2016, Mavcom granted Eaglexpress an ASP – which allows an airline to operate non-scheduled air services – for 12 months until Aug 31, 2017, with specific conditions imposed by the commission to be complied by the airline within stipulated time frames. However, the air charter services provider failed to comply with the said conditions within the stipulated deadlines, Mavcom said, but did not disclose what those conditions were.
Mavcom on Dec 1, 2016 issued a show-cause letter to Eaglexpress, giving it the opportunity to provide written representations, which were submitted to the aviation regulator on Dec 14, 2016.
“However, upon reviewing the said written representations, Mavcom has decided to revoke the ASP as the representations made were not satisfactory. The airline has failed to provide sufficient evidence for the commission to believe that it will be able to resolve all concerns raised and comply with the conditions imposed,” Mavcom added.
Eaglexpress is the second airline to lose its licence after Rayani Air Sdn Bhd, which had its air service licence (ASL) revoked in June this year following safety regulation violations and economic concerns over the airline’s viability.
“This latest episode with Eaglexpress and the earlier case with Rayani Air should be a clear indication to potential and current industry players that operating an airline (chartered or scheduled) is extremely challenging and requires a high degree of planning, financial depth, operational know-how and execution competency to stand any chance of succeeding,” said Mavcom executive chairman Tan Sri Abdullah Ahmad.
“We wish to reiterate that a robust commercial foundation and depth are therefore necessary prerequisites to be a player in this industry — regardless of whether it is an ASP or ASL holder. The commission will strive to ensure only enterprises that are equipped and ready will be allowed to participate,” he added.
Eaglexpress, which began operations in 2012, was then reportedly 40% owned by its chief operating officer and chief financial officer Captain Shin Man Soo from South Korea, while its president and chief executive officer Captain Azlan Zainal Abidin, former home ministry secretary-general and its executive chairman Tan Sri Dr Aseh Che Mat, and executive vice chairman Datuk Wan Ismail Abdul Rahman held 20% each.
In June this year, news surfaced that Eaglexpress had failed to pay its employees salaries and that it was in arrears for allowances for several months. The National Union for Flight Attendants Malaysia was also reported as saying that Eaglexpress had failed to pay employee benefits such as Employees Provident Fund and Socso since November 2015.
Last week, over 200 Eaglexpress passengers were left stranded in Nilai, Negeri Sembilan, after the airline delayed and cancelled its maiden umrah flight to Jeddah, Saudi Arabia, scheduled for Dec 12, without proper reasons.