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DCA: Larger target market drawing new airline applications

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Department of Civil Aviation DG Azharuddin says many applications are coming in for new airlines, but ‘know-how’ and ‘deep pockets’ a must.

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SEPANG: Anyone wanting to get into the airline business must have the know-how and deep pockets to sustain the business.

This sound advice came from Department of Civil Aviation (DCA) director-general Azharuddin Abdul Rahman, who said the agency had been receiving many applications from private companies and individuals keen on running their own airline.

He said in past years, more and more people were hoping to make money from the airline industry which moved millions of people daily on short- and long-haul flights.

“It is no longer seen as a business catering only for corporate-type customers. It is no longer seen as glamorous.

“The companies keen on entering this business want to also cater for backpackers and those in slippers. It is no longer about those in suits and ties,” Azharuddin told FMT.

He was asked if DCA had received applications from Malaysians still keen on participating in the airline business after the abrupt shutting down of Rayani Air recently after being in operations for a little more than three months.

The Malaysian Aviation Commission (Mavcom) had revoked Rayani Air’s licence after it had breached the conditions of its Air Service Licence (ASL) and lacked the financial and management capacity to continue operating as a commercial airline.

DCA gives approval based on technical aspects of the company, such as the number of qualified people in the company, staff strength, documentation of the aircraft, supply chain, and equipment.

Mavcom, meanwhile, is responsible for regulating all economic and commercial matters related to civil aviation in Malaysia.

Azharuddin said any company or individual wanting to start an airline must have deep pockets.

“It is a very expensive industry. Anyone who runs it knows it is one of the hardest industries to be in.

“Even AirAsia boss Tony Fernandes had a tough time initially when he took over the then small airline. It was not easy for him. There was a lot of work put in,” he said.

He said DCA will further tighten its regulations to ensure that only those who are able to run their business well be given the necessary approvals.

“We will look into the ‘know-hows’ of running the airline, equipment and other finer details before giving approval.”

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