Troubled chartered airline firm Systematic Air Services (SAS) has suffered a significant setback as its suspended air operations certificate (AOC) expired yesterday. This development comes after the Malaysian Aviation Commission (Mavcom) failed to renew the company's air service permit (ASP), a prerequisite for holding an AOC.
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A spokesperson for the Civil Aviation Authority of Malaysia (CAAM) confirmed the expiration, explaining that the five-month suspension imposed on the AOC had lapsed due to the absence of a valid ASP. Under Malaysian aviation regulations, airlines must possess both an AOC from CAAM and an ASP from Mavcom to operate air services.
The initial suspension of SAS's AOC was implemented in March following the airline's failure to meet financial obligations, including unpaid salaries, EPF contributions, and tax deductions. Despite a 90-day extension granted in June, the company was unable to rectify its financial situation or secure the necessary approvals from Mavcom.
With the expiration of the AOC, SAS is effectively grounded and prohibited from conducting any air operations. The process to reinstate the airline's operating license is expected to be lengthy, involving a comprehensive audit of its operations by CAAM. Industry sources estimate that this process could take at least three months. The demise of SAS highlights the challenges faced by the aviation industry, particularly in maintaining financial stability and complying with regulatory requirements. As the company grapples with its financial woes and the revocation of its operating license, the future of SAS and its employees remains uncertain.