AirAsia is pushing for a more liberalized air travel landscape in ASEAN

KUALA LUMPUR: Although AirAsia is thriving in key ASEAN countries, AirAsia’s continued difficulty in obtaining an operating license in Singapore highlights a key challenge in the aviation sector – the conflict between national protectionism and the need for open competition.

In addition to Malaysia, AirAsia operates in Thailand, Indonesia, the Philippines and Cambodia.

However, the low-cost airline has already had to face rejection from the island state three times.

Associate Professor Mohd Harridon Mohamed Suffian, an economist at the Malaysian Institute of Aeronautical Technology, University of Kuala Lumpur (Aerospace), advocates the establishment of AirAsia Singapore and AirAsia’s sourcing of aviation companies in Singapore.

“The open market concept should be adopted by ASEAN countries, where consumers would have endless flight options and the subsequent price war would be regulated by market forces, which would benefit consumers,” he recently told Bernama.

He said aviation is a dynamic ecosystem where technology, methods, regulations, pricing and other factors evolve every 10 to 15 years or less.

This often leads to workforce shifts as employees seek positions with organizations that value their experience and expertise in line with the technological skills acquired through the evolutionary process.

In the interest of legal and economic justice and to promote an open and free market in the ASEAN region, he stressed that it is convenient and in the interests of ASEAN for Singapore to host international companies and thereby create a competitive aviation ecosystem in the region.

“I support (AirAsia’s Group Chief Executive Officer Tan Sri) Tony Fernandes’ view that it is essential for consumers to have multiple options for airline services.”

“This would lead to a competitive aviation ecosystem where airlines would improve their flight services and offer consumers unique packages to choose from,” he said.

Additionally, he believes that airlines would become more relevant in terms of consumer orientation, which would be beneficial for the aviation industry.

There are currently four Air Operator Certificate (AOC) holders based in Singapore: Singapore Airlines Ltd, Jetstar Asia Airways Pte Ltd, Scoot Pte Ltd and ST Engineering Defense Aviation Services Pte Ltd.

Earlier this month, BBN Airlines Indonesia, a cargo airline, was reported to have received a Foreign Operator Permit (FOP) from the Civil Aviation Authority of Singapore (CAAS).

Additionally, questions arose after SIA Engineering Company (SIAEC) recently signed a 15-year deal with Khazanah Nasional’s subsidiary Impeccable Vintage Properties to lease two hangars at Sultan Abdul Aziz Shah Airport in Subang.

Tony expressed his support for SIAEC’s presence in Malaysia, pointing out the potential benefits for the country and the economy, but called for fairness regarding the lack of approval for AirAsia Singapore.

In a recent post on LinkedIn, Tony also called for transparency from SIAEC regarding Malaysian Airlines Bhd’s (MAS) recent engineering recruitment, stating that less than 10 percent of SIAEC’s new hires were from MAS’s engineering division.

Endau Analytics founder and aviation analyst Shukor Yusof pointed out that Malaysia has been producing highly skilled aviation talent for decades, but many have been lost to Gulf airlines, not just Singapore.

“There is no shortage of local talent in engineering. How to keep them happy in Malaysia with local airlines is another matter and no solution has been found. This applies to all industries, across all races,” he said.

Solving this problem requires honesty and a willingness to change, because the longer you let it fester, the worse it gets.

Perhaps cooperation with educational institutions to create special training programs between the two countries could also ensure a steady supply of qualified specialists.

It is time not only for Singapore but also for other countries in the region to rethink their stance and embrace the spirit of ASEAN integration. -Bernama