The suspension follows the failure by the troubled chartered airline company to get its air service permit (ASP) renewed by the Malaysian Aviation Commission (Mavcom) within the 90-day suspension period.
On March 12, CAAM suspended SAS for 90 days after Mavcom did not renew the ASP on Feb 29.
Under Malaysian aviation laws, the air operations certificate will only be issued if there is a valid ASP to operate commercial air services for hire and reward.
CAAM had given SAS until today to obtain its ASP or face revocation of the air operations certificate, which means it has to make a fresh application. Industry sources said it may take at least three months for it to be processed.
However, CAAM CEO Norazman Mahmud said in a statement today it has extended the suspension of the air operations certificate until July 31. The certificate was first issued to SAS in 2021.
Norazman said that during this suspension period, SAS is expected to diligently work towards compliance with all regulatory requirements and the timeline to obtain the appropriate approval from Mavcom in order to resume operations safely.
“As the technical regulator of the Malaysian aviation industry, CAAM oversees the technical aspects of air operators to ensure that all safety and security standards are met,” he said.
It would carry out a thorough audit to assess the capability and competency of the air operator in the areas of commercial air transport, operations and airworthiness.
He also said key aspects that are assessed for the issuance and renewal of an air operations certificate are the capabilities of the air operator to conduct safe operations and in accordance with the specified provisions.
FMT previously quoted former SAS senior officials as saying that the company’s ASP permit was not renewed after it had failed to pay staff salaries and non-settlement of EPF and tax deductions “running into millions of ringgit”.
The former staff members said Mavcom, which issues the ASP, and CAAM use prompt payment of salaries and EPF contributions as indicators of an ASP applicant’s financial health.
Meanwhile, a Mavcom spokesman told FMT the company’s ASP remains lapsed.
Earlier today, former and current SAS staff appealed to two ministries to investigate the company for its failure to pay salaries and statutory deductions.
In a petition addressed to transport minister Loke Siew Fook and human resources minister Steven Sim, the 68 former and current staff – some of whom said they had not been paid since April – asked the ministers to instruct SAS to immediately pay all outstanding salaries and statutory deductions.