THE two agencies managing the country’s civil aviation, namely the Malaysian Aviation Commission (Mavcom) and Civil Aviation Authority of Malaysia (CAAM), will be integrated, reports The Edge Markets.

It quoted a source as saying the move is to empower CAAM by consolidating both authorities to regulate the economic and technical aspects of the industry.

Mavcom, which regulates economic and commercial affairs, was established on March 1, 2016 under the Mavcom Act 2015, while CAAM, which oversees technical and safety matters, was set up as an incorporated body under the CAAM Act 2017.

Previously, CAAM was known as the Civil Aviation Department under the Transport Ministry.

The agency was in the news when the US Federal Aviation Authority on November 11 downgraded it to Category 2, meaning airlines licensed by CAAM will not be able to add new routes to and from the US.

The report said the structure of the integrated entity is not known, but Parliament will need to amend and pass legislation to unwind Mavcom.

One thing for certain is that the integration will raise uncertainties about the regulated asset base framework that Mavcom is working on.

The framework forms the basis for funding and developing the airport network in Malaysia, which the agency had announced was in the final stages of completion. – December 12, 2019.