Ascend Airways Malaysia Optimistic On ACMI Business With Operations Targeted For Mid-November
By Kisho Kumari Sucedaram
KUALA LUMPUR, Aug 28 (Bernama) — Ascend Airways Malaysia is confident of the prospects of its aircraft, crew, maintenance and insurance (ACMI) business, with operations targeted to commence by mid-November this year in line with rising demand and interest in Malaysia and the Asia-Pacific region.
Chief executive officer (CEO) of Ascend Airways Malaysia Germal Singh Khera said the company has reached phase four of the air operator’s certificate (AOC) process with the Civil Aviation Authority of Malaysia (CAAM) and expects to complete it within the stipulated timeline.
“We are progressing very well and CAAM has been very helpful. We have successfully closed three phases, and now we are about midway through phase four. In fact, we just completed the CAAM audit last week,” he told Bernama at the Expanding Asia’s Aviation Market with ACMI Leadership Forum hosted by Avia Solutions Group and Ascend Airways.
He said once the Boeing 737-800 freighter aircraft arrives next week, the airline will conduct the proving flight test required under phase four and thereafter, phase five will be largely administrative.
“If everything falls into place, we are looking at mid-November to kick off operations,” he said.
The first aircraft of the fleet would facilitate the final stages of the AOC process under the purview of the CAAM.
So far, the airline has obtained a Conditional Air Service Permit, which will be expiring on Nov 14, 2025.
A sister company of Ascend Airways UK, the airline will operate under a business-to-business (B2B) ACMI charter model, offering flexible and short-term capacity solutions for local and regional airlines.
Germal said Ascend Airways Malaysia is confident about demand for ACMI in Malaysia and the broader ASEAN market, even though the concept is relatively new in the region compared to Europe where it is widely adopted.
“The very fact that we are setting up an ACMI business means we have done our homework. There must be good potential for it. In this part of the world, airlines traditionally go for long-term aircraft leasing even if the actual utilisation is only for a few months or a seasonal route.
“That is where ACMI comes into play. We provide flexibility. For example, if an airline wants to develop a new route but is not confident, it can try for four to six months. If it works, they continue. If not, they can walk away without being stuck with a one-year lease,” he explained.
According to Germal, this flexibility makes ACMI highly relevant, especially in today’s volatile aviation market, where demand patterns are shifting.
He also said Ascend Airways Malaysia is in talk with several potential airlines and clients in Malaysia.
“At the same time, because the ACMI model is new here, some airlines have their reservations. Some still prefer to own or directly lease aircraft because of the traditional mindset that aircraft ownership brings other advantages, including potential capital gains,” he said.
Nevertheless, he noted that the airlines are beginning to recognise the cash flow benefits and operational flexibility ACMI provides, gradually.
He said the ASEAN Open Skies framework is also supportive of ACMI growth with more flexibility and opportunities for airlines to experiment with routes.
“With a population of over 600 million in the region, there are vast opportunities for charters, secondary routes and seasonal demand. ACMI gives airlines the ability to respond quickly to these opportunities without locking themselves into long-term commitments,” he said.
Ascend Airways Malaysia is an affiliate of the Ireland-based Avia Solutions Group.
Avia Solutions Group already holds an AOC in Indonesia and is seeking regulatory approval for additional AOCs in Thailand, the Philippines and Malaysia.
For Malaysia, operations will be based at KL International Airport Terminal 1, with an initial fleet expected to reach 20 aircraft by 2027, including contributions from its United Kingdom (UK) operation.
Meanwhile, Ascend Airways CEO Alastair Willson said Malaysian aviation industry has a stable regulatory environment with high standards and is open to foreign investments, besides being centrally located in the Southeast Asia region.
“Not only that, the UK and Malaysia enjoy very liberal air service agreements, uniquely including permitting domestic flights as well as good relations between CAAM and UK Civil Aviation Authority, which provides opportunities in the future,” he said, adding that the ACMI business model would also drive gross domestic product growth in Malaysia.
-- BERNAMA