Mavcom-CAAM merger – why fix what’s not broken?


THE International Aviation Authority (IAA) has urged the cabinet to review its decision to dissolve the Malaysian Aviation Commission (Mavcom), which it plans to merge with the Civil Aviation Authority of Malaysia (CAAM).

The concern arises from the importance of having an independent economic regulator which is free from conflict of interest. The independence of such institution determines the type of decision or stand that it will decide in the future.

A close example we can use is the 1MDB scandal, where it was reported that there are missing parts in the reports produced by the previous auditor-general (AG), which means it has been tampered with. If the AG was independent and free from any conflict of interest, we might have been able to prevent 1MDB from the start.

The Transport Ministry (MoT) has confirmed that Mavcom will be disbanded and its key roles will be absorbed into CAAM. Besides that, the MoT has stated that the main reason for the merger is to address the US Federal Aviation Administration’s recent decision to downgrade Malaysia’s air safety rating from Category 1 to Category 2, as well as to empower CAAM with its financial position.

However, is it the best solution possible to absorb Mavcom into CAAM? How sure are we that this merger will create a more capable and quality aviation regulator and not chaos? Can the merger provide a positive impact in CAAM and enhance its function as well as its purpose and what if it doesn’t?

Mavcom has delivered many positive impacts on the aviation industry. These are among of them that have impacted consumers travelling.

Firstly, Mavcom has eliminated hidden charges for travel with the latest amendment to the Malaysian Aviation Consumer Protection Code 2016 (MACPC), which has been effective since June 2019. In accordance to the MACPC, the required airline must publish the final price of airfare the base fare and all charges to be paid to the airline, government-imposed taxes and fees, charges prescribed under any written law, as well as fuel surcharge.

This is really important because many consumers are not aware of the hidden charges and they end up having to pay for something they are not informed about.

Secondly, refunds on flight tickets are now reimbursed to passengers within 30 days from the date the passage requested for a refund. The amendments also include a refund to consumers on passenger service charges, taxes, fees, and charges prescribed under any written law for both refundable and non-refundable tickets, should a passenger not travel.

Thirdly, its initiatives to educate consumers on their travel rights. Mavcom had launched the FlySmart application, which is a convenient platform for consumers to access essential information and lodge their complaints from their mobile devices.

Based on all these points, Mavcom has been effective in trying to understand the everyday troubles of consumers and provided solutions as well. These are among very positive qualities that have been shown by Mavcom that the government should consider before merging it with CAAM.

Why do we need to change an organisation which is already working? The government should reconsider this decision and set up a special select committee to deliberate on the pros and cons. – December 22, 2019.

* Sophie Shakur reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


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Comments


  • The PH government is so bent to merging and consolidation businesses and operations that they got carried away with the proposed merger between MAVCON & The Aviation Authority.
    They dont seem to understand that MAVCOM is supposed to be an independent body that provides oversight where various stakeholders are concerned.. I.e. the Consumer market/general publics, the Airlines and the Government.
    The Minster of Transport got carried away in all that enthusiasm about bringing value to his ministry.. until he lost focus

    Posted 6 years ago by Kampung Boy · Reply

  • You need to ask... Who benefits most without MAVCOM at its heels? A large Low Cost Airline !
    Guess who has been sucking up to TDM? Our very own Tony 'I will kiss any ass" Fernando

    Posted 6 years ago by Viji Rajasundram · Reply