Ingenieur Vol 80 ingenieur 2019 octoberfinal | Page 37

Figure 1: Distinction between the roles of the agencies governing economic and technical regulation – Ireland, India, and the Philippines also have separate regulatory authorities for economic and technical regulation. In addition, MAVCOM comprises industry professionals from various airlines and airports. The Commission has a strong team in place, allowing it to function effectively in looking after the civil aviation industry and aviation consumers. In line with its mandate to regulate economic and commercial matters pertaining to the sector, the Commission has also been put in charge of ground handling matters, including issuing Ground Handling Licences (GHL) to those who wish to carry out ground handling services in Malaysia. Shortly after MAVCOM was established, a moratorium on issuances of GHL to new applicants was imposed on April 25, 2016 as part of the Commission’s rationalisation exercise of the ground handling industry, and the moratorium was only lifted on June 1, 2019. The objective of this exercise was to ascertain legitimate ground handlers and facilitate a stronger ground handling sector in Malaysia. Pursuant to the review, MAVCOM identified 64 ground handlers in Malaysia prior to the Commission’s establishment. These ground handlers were then asked to register with the Commission in accordance with Section 103 of the Malaysian Aviation Commission Act 2015. Applicants were also required to register with CAAM for Technical Approval (TA). Applications were assessed by MAVCOM based on several necessary standards, including the feasibility of their proposed business plan, as well as the financial viability of the business. Of the 64, only 39 Ground Handling Service Providers (GHSP) were successfully registered and of these, nine applications were withdrawn due to incomplete documentation or non-submission. As such, 30 ground handlers were approved for GHL based on the fitness and eligibility of the service provider. As of July 13, 2019, there are 29 ground handlers who have been approved by the Commission to provide ground handling services in Malaysia. MAVCOM is currently collaborating with the Ministry of Transport to look at ways to further liberalise the ground handling sector so that the sector has wider access to capital and technology. The ground handling sector involves general ground handling, catering, and refuelling, with catering being the most concentrated market. General ground handling comprises primary, secondary and general aviation handlers. Primary handlers offer a comprehensive range of ground handling services to all major airlines operating in the country. Secondary handlers typically provide a selected number of ground handling services and are engaged as vendors to the primary handlers. 35