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outdated manual and flight operations not in keeping with the manual.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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