Malaysia legislation
Section 15
of CIVIL AVIATION AUTHORITY OF MALAYSIA (AMENDMENT) ACT 2024
Section 15
New Parts Va, Vb, Vc, Vd, Ve, Vf and Vg
The principal Act is amended by inserting after Part V the following parts:
“Part Va
LICENSING AND CHARGES
Air service licence 36a. (1) No person shall undertake to carry by air or use any aircraft for the carriage of passengers, mail or cargo for hire or reward on a scheduled journey between two or more places of which at least one place is in Malaysia except under and in accordance with an air service licence granted by the Authority.
(2)
Subsection (1) shall not apply to a person who is permitted to operate a scheduled journey to or from a place in Malaysia under the terms of any agreement or arrangement entered into by the Government.
(3)
Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding ten years or to both, and in the case of a continuing offence, the offender, in addition to the penalty provided in this subsection, shall be liable to a fine not exceeding fifty thousand ringgit for every day during which the offence continues after conviction.
Air service permit 36b. (1) No person shall undertake to carry by air or use any aircraft for the carriage of passengers, mail or cargo for hire or reward on a non-scheduled journey between two or more places of which at least one place is in Malaysia except under and in accordance with an air service permit granted by the Authority.
(2)
Subsection (1) shall not apply to a person who is permitted to operate a non-scheduled journey to or from a place in Malaysia under the terms of any agreement or arrangement entered into by the Government.
Civil Aviation Authority of Malaysia (Amendment)
(3)
Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit, and in the case of a continuing offence, the offender, in addition to the penalty provided in this subsection, shall be liable to a fine not exceeding fifty thousand ringgit for every day during which the offence continues after conviction.
Ground handling licence 36c. (1) No person shall undertake any of the ground handling services in Malaysia as specified in the Second Schedule except under and in accordance with the licence granted by the Authority.
(2)
No person shall engage any ground handling operator unless the operator is licensed under this Act.
(3)
Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, the offender, in addition to the penalty provided in this subsection, shall be liable to a fine not exceeding fifty thousand ringgit for every day during which the offence continues after conviction.
Aerodrome operator licence 36d. (1) No person shall operate an aerodrome in Malaysia for the take-off and landing of any aircraft engaged in the carriage of passengers, mail or cargo for hire or reward except under and in accordance with a licence granted by the Authority.
(2)
Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit, and in the case of a continuing offence, the offender, in addition to the penalty provided in this subsection, shall be liable to a fine not exceeding fifty thousand ringgit for every day during which the offence continues after conviction.
Application for licence or permit 36e. (1) An applicant for a licence or permit under this Act shall submit an application in the form and manner together with such documents and information as may be prescribed.
(2)
The application shall be accompanied by such fees as may be prescribed.
(3)
After receipt of the application, documents, information and fee, the Authority shall consider the application having regard to such requirements as may be prescribed.
(4)
Where the Authority is not satisfied that the applicant has fulfilled the requirements, the Authority shall afford the applicant an opportunity to amend, rectify or supplement his application within such time as may be determined by the Authority.
(5)
The failure of the applicant to amend, rectify or supplement his application under subsection (4) to the satisfaction of the Authority shall render the application to be deemed withdrawn.
(6)
Where the Authority is satisfied that the applicant has fulfilled the requirements, the Authority may issue such licence or permit, subject to the payment of the prescribed fee.
Power to impose conditions 36f. (1) Subject to this Act, the Authority may attach to a licence or permit issued under this Part such conditions as the Authority thinks fit, and in particular, any condition which the Authority considers desirable for public interest, in the interest of safety, security and facilitation, or in order to prevent uneconomic competition.
(2)
The Authority may, at any time in its discretion, add, cancel or vary any of the conditions attached to a licence or permit under this section.
Civil Aviation Authority of Malaysia (Amendment)
(3)
A licensee or permit holder who fails to comply with any of the conditions attached to his licence or permit, as the case may be, commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.
Duration of licence or permit 36g. A licence or permit granted or issued under this Part shall be valid for such period as may be prescribed.
Renewal of licence or permit 36h. (1) Subject to subsections (2) and (3), the Authority may, on an application by a licensee or permit holder, renew such person’s licence or permit on such conditions as the Authority thinks fit or refuse the application.
(2)
An application for the renewal of a licence or permit under subsection (1) shall be made at least ninety days before the date of expiry of the existing licence or permit, as the case may be, and shall be accompanied by the prescribed renewal fee.
(3)
If the applicant fails to comply with subsection (2)
and offers no reason which the Authority thinks reasonable, the Authority may refuse to proceed with, hear or determine such application.
(4)
Where no application for renewal of a licence or permit has been submitted, the licensee or permit holder shall within fourteen days from the date of expiry of the licence or permit, return the licence or permit, as the case may be, to the Authority.
Suspension or revocation of licence or permit 36i. (1) The Authority may, by written notice to a licensee or permit holder and without any compensation, revoke or suspend a licence or permit granted or issued under this Part—
(a)
if any provisions of this Act or subsidiary legislation under this Act, or any conditions of the licence or permit has not been complied with;
(b)
if the issuance of the licence or permit was induced by a false representation of fact by or on behalf of the applicant, licensee or permit holder;
(c)
in the event of the death, incapacity, bankruptcy or, in the case of a company, liquidation of the licensee or permit holder or where a receiver or manager is appointed in relation to the business of such licensee or permit holder; or
(d)
if the Authority is satisfied that the licence or permit granted or issued under this Part has been or is intended to be used for an unlawful purpose or that the original purpose for which the licence or permit was granted or issued no longer exists.
(2)
The Authority shall not revoke or suspend a licence or permit unless the Authority is satisfied that, after giving the licensee or permit holder an opportunity of making any representation in writing he may wish to make, the licence or permit shall be revoked or suspended.
(3)
Notwithstanding subsection (1), in the event that an air service licensee or air service permit holder ceases to hold a valid air operator certificate, the air service licence or air service permit granted or issued under this Part shall be deemed to be revoked with effect from the date the air service licensee or air service permit holder ceases to hold an air operator certificate.
Civil Aviation Authority of Malaysia (Amendment)
(4)
It shall be the duty of each air service licensee or air service permit holder to inform the Authority, not later than two days after the occurrence of the event specified in subsection (3), of the occurrence of that event and the effective date of that event and surrender the air service licence or air service permit granted or issued under this Part to the Authority in accordance with subsection (5).
(5)
Where a licence or permit—
(a)
has been revoked, the licence or permit shall have no effect from the date of revocation and the licensee or permit holder shall within fourteen days from the date of the revocation of the licence or permit return the licence or permit, as the case may be, to the Authority; or
(b)
has been suspended, the licence or permit shall have no effect during the period of suspension.
Surrender of licence or permit 36j. (1) A licensee or permit holder may surrender his licence or permit by submitting to the Authority a written notice of the surrender of the licence or permit, as the case may be, not less than six months prior to the proposed date of surrender.
(2)
The surrender of the licence or permit shall take effect six months from the date the Authority receives the notice under subsection (1) or on such other date as may be determined by the Authority.
(3)
The surrender of the licence or permit under subsection (1)
shall be irrevocable unless the Authority by notice in writing to the licensee or permit holder allows the surrender to be withdrawn before the effective date of the surrender of the licence or permit.
(4)
The licensee or permit holder shall—
(a)
take all such measures and provide all such assistance as may be required by the Authority pursuant to the surrender of the licence or permit; and
(b)
forward the licence or permit to the Authority on the effective date of the surrender of the licence or permit.
Transfer or assignment of licence or permit 36k. (1) Subject to subsection (3), a licence or permit granted or issued under this Part shall be personal to the licensee or permit holder and shall not be transferred or assigned.
(2)
A licensee or permit holder who contravenes subsection (1)
commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
(3)
Notwithstanding paragraph 36i(1)(c), the Authority may, in the event of the liquidation of a licensee or a permit holder, or where a receiver or manager is appointed in relation to the business of such licensee or permit holder, or where for any reason the Authority is satisfied that it would be unjust not to do so, authorize the transfer of such licence or permit.
Aviation services charges 36l. (1) The Authority shall regulate charges for aviation services.
(2)
In carrying out its function under subsection (1), the Authority shall have the power to—
(a)
set charges, including maximum charges, for aviation services including passenger service charges, landing fees and parking fees, third
Civil Aviation Authority of Malaysia (Amendment)
19
party ground handling charges and other charges for aviation services at such intervals as the Authority thinks fit, or establish the method for determination of such charges;
(b)
carry out reviews of charges set or method established as referred to in paragraph (a); and
(c)
following such reviews, revise any charges set or method established under paragraph (a)
as the Authority thinks fit.
(3)
For the purposes of paragraphs (2)(a) and (c), the Authority shall have regard to—
(a)
the costs of supplying the aviation services;
(b)
the need to promote competitive charges;
(c)
any relevant benchmarks including international benchmarks for prices, costs and return on assets in comparable industries;
(d)
the financial implications which may arise from the determination of the Authority;
(e)
the interest of consumers and investors;
(f)
the return on assets for the licensee or permit holder;
and
(g)
any other factors as the Authority considers relevant.
(4)
The charges set and the method for determination of the charges by the Authority under this section shall be published in the Gazette.
Part Vb
COMPETITION