A spokesman for the Civil Aviation Authority of Malaysia (CAAM) said the five-month suspension of the AOC expired yesterday as the Malaysian Aviation Commission (Mavcom) had not renewed the company’s air service permit (ASP).

According to Malaysian aviation regulations, CAAM will only issue an AOC if companies providing air services have ASPs from Mavcom.

“With the AOS expired, SAS cannot exercise the privileges provided by this permit. They cannot provide any service for hire and reward, which was the same as when they were suspended,” the spokesman told FMT.

“Now SAS will have to make a fresh application for an AOC only after Mavcom issues an ASP for its operations.”

According to industry sources, this process will take at least three months as CAAM must audit the company’s operations.

CAAM initially suspended the company’s AOC for three months as Mavcom had not renewed its ASP, which lapsed on Feb 29.

The regulator acted due to SAS’s failure to pay staff salaries and settle EPF and tax deductions amounting to millions of ringgit.

On March 12, the suspension was extended by 90 days, with CAAM head Norazman Mahmud saying that SAS was expected to diligently work towards meeting regulatory requirements and secure approval from Mavcom to safely resume operations.

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.

SAS’s nature of business is listed as aviation specialist advisory and consultancy services in air transportation, including the leasing or sub-leasing of aircraft equipment, spares and related machinery.

The company also describes itself as providing helicopter and fixed-wing services.

Meanwhile, Mavcom said the ASP remains lapsed until further notice.