CAAM-Mavcom merger set for second half of 2025, says CEO

KUALA LUMPUR, Jan 17 — The merger of the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (Mavcom) is expected in the second half of this year, CAAM chief executive officer Datuk Captain Norazman Mahmud said.

In an exclusive interview with Bernama, he explained that while the process is ongoing, several central agencies must approve the merger before it can proceed.

“There are many more processes to be done. We have to speak to all the central agencies.

“We just finished with the Public Service Department, and next week we will be engaging with the Ministry of Finance, followed by the Ministry of Economy,” he said, after appearing on Bernama TV’s The Nation programme, where he discussed “Passenger Safety in Aviation.”

Captain Norazman stressed the need to convince these agencies that the merger can be successfully implemented and that the process will be self-sustaining.

CAAM’s revenue comes from air navigation fees, which fund the operation of radar centres across Peninsular Malaysia, Sabah, and Sarawak.

“We have already implemented the revision of fees and charges starting on January 1, and this will provide the necessary funds to support the transition to becoming an independent entity,” he said.

Moreover, he noted that air navigation charges in Malaysia had been among the lowest in the region before they were revised in 2016.

“We are probably still lower than Thailand, but we are providing the same service. A one-time fee revision in 2016 was definitely not enough; we need three to four times more revisions to be on par with other regions,” he said.

While the official merger date will be announced by the transport minister, Captain Norazman said he is focused on ensuring the timeline is met without disrupting the aviation industry.

“On our part, we have been working on the business process engineering since last year. I will let the minister announce the date,” he said.

On post-merger salary schemes, Captain Norazman highlighted the need to offer competitive compensation for qualified technical personnel (QTPs), including pilots, engineers, and air traffic controllers.

“We need to ensure that QTPs are paid on par with the market. While we are currently under the JPA scheme, we are now working towards reaching the corporate standard,” he said.

The merger is expected to streamline Malaysia’s aviation regulatory framework and improve operational efficiency, strengthening the sector’s competitiveness.

It follows the Parliament’s approval of two bills on July 30: the Civil Aviation Authority of Malaysia (Amendment) Bill 2024 and the Malaysian Aviation Commission (Dissolution) Bill 2024.

The latter involves the dissolution of Mavcom and the transfer of its functions to CAAM.

This unified model is also used in leading global air transport sectors, including in the United States, the United Kingdom, Germany, Singapore, and China.

Responding to questions from host Jessy Chahal on passenger safety, Captain Norazman revealed that CAAM has been using big data since 2020 to analyse trends and identify vulnerabilities within airlines, helping to strengthen aviation safety.

He also announced that CAAM is working towards creating a data warehouse by 2027 to improve oversight and predict potential risks.

At the same time, he urged passengers to enhance their safety by following crew instructions, wearing seatbelts, and being aware of their surroundings.

“CAAM is also working to raise awareness among travellers through social media and other initiatives,” he added. — Bernama