KUALA LUMPUR: Despite a thriving operation in major ASEAN countries, AirAsia’s persistent difficulty in obtaining an operating licence in Singapore highlights a key challenge in the aviation sector-the conflict between national protectionism and the need for open competition.
Besides Malaysia, AirAsia operates in Thailand, Indonesia, the Philippines, and Cambodia.
However, the low-cost airline has faced rejection three times from the island state.
Universiti Kuala Lumpur Malaysian Institute of Aviation Technology economist (aviation and aerospace) Associate Professor Mohd Harridon Mohamed Suffian advocates for establishing AirAsia Singapore and procuring aviation entities in Singapore by AirAsia.
“The open market concept should be embraced by countries in ASEAN, where myriad flight options would be available to consumers, and the subsequent price battle would be regulated by market forces, which would benefit the consumers,” he told Bernama recently.
He said aviation is a dynamic ecosystem where evolution in technology, methods, regulations, prices, and other factors occurs every 10 to 15 years or less.
This frequently leads to shifts in manpower, as employees seek placements at organisations that value their experience and expertise in accordance with the technological dexterities gained through the evolutionary process.
For judicial and economic fairness, and to promote an open and free market in the ASEAN region, he emphasised that it is favourable and within the spirit of ASEAN for Singapore to cater to international companies, thereby creating a competitive aviation ecosystem in the region.
“I support the notion by (AirAsia’s group chief executive officer Tan Sri) Tony Fernandes that it is imperative for consumers to have numerous options for flight services.
“This would lead to a competitive aviation ecosystem, where airlines would enhance their flight services and offer distinctive packages for consumers to choose from,” he said.
Moreover, he believes airlines would gain traction in terms of consumer-centricity, which is beneficial for the aviation industry.
Currently, Singapore is home to four air operator certificate (AOC) holders: Singapore Airlines Ltd, Jetstar Asia Airways Pte Ltd, Scoot Pte Ltd and ST Engineering Defence 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 agreement with Khazanah Nasional’s subsidiary company, 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, noting its potential benefits for the country and 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 its recent recruitment of Malaysian Airlines Bhd’s (MAS) engineering staff, indicating that less than 10 per cent of SIAEC’s new hires came from MAS’s engineering arm.
Endau Analytics founder and aviation analyst Shukor Yusof pointed out that Malaysia has produced highly skilled aviation talent for decades, yet many have been lost to Gulf carriers, not just to Singapore.
“There is no shortage of local talent in engineering. How to keep them contented in Malaysia, with local airlines, is a different proposition, and no solution has been found. This applies to all industries, across all races,” he said.
To resolve this issue, he said, it requires honesty and a willingness to change because the longer it is allowed to fester, the worse it will become.
Perhaps collaborating with educational institutions to create specialised training programmes between both countries could also ensure a steady pipeline of skilled professionals.
It’s time for not only Singapore, but also other countries in the region, to reconsider their stance and embrace the spirit of ASEAN integration. – Bernama
