Malaysia wants FAA re-assessment within a year

November 15th 2019

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Malaysia acknowledges the shortcomings that led to the Federal Aviation Administration’s (FAA) downgrading of the country to Category 2 and said it hoped for a re-assessment within a year.

Civil Aviation Authority of Malaysia board member, Afzal Abdul Rahim, said the FAA found 33 weaknesses, including structural issues, technical certification of officers and regulatory gaps.

The Category 2 rating is a reflection of Malaysia’s regulator and its ability to provide oversight. Category 2 is not an assessment of individual airlines, unlike the European Union’s blacklist.

Its impact will be limited for Malaysia Airlines (MAS), which does not serve, nor plans to serve, the U.S. The FAA does not explicitly require U.S. airlines to end code-shares on Category 2 airlines, but U.S. airlines typically end code-shares in such situations. American Airlines (AA) code-shares with MAS. AA can retain code-share access to Malaysia via existing code-shares with Cathay Pacific Airways and Japan Airlines.

The ruling may impact AirAsia X, which serves Honolulu, via Osaka Kansai, and has plans to operate to an unspecified destination on the U.S. west coast from 2021. Airlines from a Category 2 country cannot add services or change existing flights. This would prohibit AirAsia X from expansion in the U.S. until the FAA restores Malaysia to a Category 1 nation.

AirAsia X said in a statement: “By keeping the lines of communication open with regulators and industry, we are confident Malaysia will soon restore its Category 1 rating.”