By ZAIDI ISHAM ISMAIL
KUALA LUMPUR Nov 22 - The Malaysia Aviation Commission (MAVCOM) should for starters suspend AirAsia X Bhd's license for not refunding its passengers.
Universiti Kuala Lumpur’s Malaysian Institute of Aviation Technology Professor Mohd Harridon Mohamed Suffian said MAVCOM has the authority to revoke the Air Service License (ASL) of AAX if the initial official warning is not taken heed by AAX.
"MAVCOM may however at the initial stage suspend the ASL in order to give latitude to AAX to redeem themselves.
If this still proves futile, MAVCOM may, in due diligence, revoke the ASL as the final respond" Dr Harridon told DagangNews.com.
AAX the sister company of AirAsia Bhd is currently under fire by its passengers for refusing to refund ticket payments due to cancelled flights brought about by COVID-19.
Analysts and industry observers said AAX has flown off course from its business plan and its management need to go back to the drawing board.
Harridon said the low cost long haul carrier has deviated from its business plan which somehow has put the customers in dire financial situation.
Harridon said in the case of AAX or any airlines, before the airline begin it's operation, MAVCOM dictated that they should have a viable business plan in order to protect the customers and the aviation industry.
"This business plan is usually submitted to MAVCOM and if the business plan is deemed viable MAVCOM would furnish the airline the ASL which allows the airline to transport passengers.
"MAVCOM as the regulator of air transport has the authority to give official stern warning to any air operators or airlines that create unfavourable scenarios towards customers or clients," said Harridon.
Mavcom had last week issued a warning to AAX to refund passengers of their unused flight tickets and failure to do so will result in MAVCOM taking stern action.
Meanwhile, an analyst at Permodalan Nasional Bhd questioned the timing of MAVCOM's stance over the issue.
"Why did MAVCOM only opened its mouth now?
Where has it been before the creditors-AAX meeting and the ticket refund issue blew up in the media?
He said MAVCOM has the authority to revoke AAX's license - just use it. - DagangNews.com