Reopening of international borders boosts air traffic rights applications: Mavcom

PETALING JAYA: The Malaysian Aviation Commission (Mavcom) has approved 95.4% of the total 22 Air Traffic Rights (ATR) applications, granting 21 approvals to eight airlines in the first quarter of 2022 (Q1’22).

The 22 ATR applications submitted to the commission represent a slightly reduced application rate of 0.08% in contrast with the 24 applications received in the corresponding quarter of 2021, due to airlines awaiting the reopening of Malaysia’s international borders. Of the 22 applications received, 14 were for international routes, while the remaining eight were for domestic routes.

SKS Airways Sdn Bhd, which is among the newest airlines in Malaysia, was awarded the highest number of ATR approvals with a total of four ATRs across domestic routes. Meanwhile, AirAsia Bhd, Malaysia Airlines Bhd, M Jets International Sdn Bhd and MyJet Xpress Airlines Sdn Bhd each received three ATR approvals followed by MABKargo and MASwings, which both received two ATRs. AirAsia X Bhd was awarded one ATR approval.

There has been a significant jump in ATR applications following the reopening of Malaysia’s international borders on April 1. A total of 15 ATR applications were submitted between April 1 and April 15, comprising seven ATRs for the cargo sector including passenger-to-cargo flights, three ATRs for passenger flights on domestic routes, and five ATRs for passenger flights on international routes. This represented an increase of 650% in applications received during the 15-day period, compared to the two applications received between March 1 and March 15.

Mavcom executive chairman Datuk Seri Saripuddin Kasim said since the announcement of the reopening of Malaysia’s international borders, there has been a spur of ATR applications from airlines. This is an encouraging development as it signals that the industry is gradually transitioning towards recovery.

On the issue of high airfares to Sabah and Sarawak, 1,141 flight frequencies have been approved for the routes between Peninsular Malaysia to Kota Kinabalu, Tawau, Sandakan, Sibu, Kuching, Bintulu, Miri and Labuan for flights during the Hari Raya Aidilfitri travel period of April 27 to May 8.

“Mavcom’s latest observation on April 21 shows that most economy one-way airfares for flights from Peninsular Malaysia to Sabah and Sarawak are around RM200 to RM500 during the same travel period. This is due to the increased flight frequency and more seats being made available for the public. At the same time, the commission does not regulate airfares as it is determined based on a dynamic pricing mechanism applied by airlines globally and is also utilised in various industries.”

As for ATR applications for the cargo sector, Mavcom received and approved eight ATR applications in Q1’22. While this represents a 38.5% decrease compared to the 13 ATRs received in the fourth quarter of 2021, cargo growth remains healthy as a result of the continued lack of cargo capacity. In addition, cargo rates remain higher than pre-pandemic levels.

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