BANDAR SRI BEGAWAN (Nov 13): The Asian aviation industry is still grappling with ongoing supply chain disruptions, even as demand remains resilient, according to a regional airlines association.

The disruption remains the biggest threat to industry growth, according to Subhas Menon, director general of the Association of Asia Pacific Airlines (AAPA). The association represents 15 airlines, including Malaysia Airlines.

Manpower and part shortages have delayed air transport, while higher certification standards, together with more frequent component failures, have aggravated chokes in the supply chain, Subhas flagged.

“If you add the airspace closure due to conflicts in Ukraine and the Middle East, it is a real wonder that industry growth is still as enduring as it is today,” he said in his opening speech at the AAPA 68th assembly of presidents, held in Brunei on Wednesday. 

Asia Pacific’s international air travel recovery is just two percentage-points from the 2019 pre-pandemic levels, while airlines’ operating profits and passenger load factors — which measure how full an airline’s planes are with paying travellers — “are better than they have ever been,” Subhas noted.

Air cargo demand is also “boiling”, he said.

However, the challenges to the industry also led to frequent disruptions to flight schedules, that have prompted regulators to mandate compensation for delays and cancellations.

Airlines are already undertaking significant costs by accommodating passengers, while sourcing for alternative aircraft at higher costs to keep their operations ticking, Subhas said.

“They will be even more out of pocket with onerous rules that attack the symptom, rather than helping mitigate the disruptions,” he cautioned.

In Malaysia, airlines must issue refunds for flights delayed by five hours or more. This was made effective in September, as part of changes to the Malaysian Aviation Consumer Protection Code 2016.

Failure to comply with the regulation can result in a maximum penalty of RM200,000, with subsequent non-compliance resulting in a penalty 10 times greater than the initial fine.