KUALA LUMPUR: The United States Federal Aviation Administration’s (FAA) downgrade of Malaysia’s air safety rating may erase up to RM4 billion revenue for Malaysian carriers and another RM400 million for airport operators. Malaysian carriers primarily dominated by state-owned Malaysia Airlines Bhd, AirAsia Group Bhd and its long-haul arm AirAsia X Bhd. “We are concerned about our local carriers as they might suffer the same fate as Thailand when it was downgraded by the FAA in 2015. Mavcom had also estimated revenue at risk for the local aviation sector due to the FAA downgrade is RM371.6 million. This is the first comment by MAVCOM since the FAA downgraded Malaysia’s safety rating to Category 2 late last year.

Source: New Strait Times February 12, 2020 03:11 UTC