REMARKABLE GROWTH FOR AVIATION IN 2024, MARKED BY GREEN TRANSFORMATION, CROWDSTRIKE AND NEW ROUTES

By Kisho Kumari Sucedaram

KUALA LUMPUR, Dec 15 (Bernama) -- It was a remarkable year for Malaysia’s aviation sector, with air travel booming as airlines successfully met rising passenger demand, fuelling a robust recovery across the industry.

This was despite the CrowdStrike global information technology outage and national carrier Malaysia Airlines temporarily reducing flight frequencies due to delayed delivery of its Boeing aircraft.

Air travel was also rattled by the deadly turbulence that hit Singapore Airlines flight SQ321 over Thailand en route to Singapore from London, which tragically killed a British passenger. This sparked widespread inquiries about whether there are ways to prevent such frightening flight disturbances.

In contrast, there was some good news when Malaysia Airlines pilots were praised on social media for their skilful landing at London’s Heathrow Airport on December 8, despite turbulence caused by strong crosswinds from Storm Darragh.

Back home, AirAsia hogged the limelight in flying to new destinations including far-off Nairobi last month and to Almaty in Kazakhstan in March while its parent company Capital A submitted proposals to exit its PN17 status.

The saga of the financially beleaguered, suspended MYAirline, which is trying to revive operations, continued as a potential Middle Eastern investor backed out.

Elsewhere, Malaysia Airports Holdings Bhd’s (MAHB) announced that Britain’s national carrier, British Airways, would begin flying to Kuala Lumpur International Airport (KLIA) which was very encouraging. However, recent reports indicate that the launch has been postponed until April 2025.

Controversy over GIP’s purchase of stake in MAHB

MAHB became the talk of the town following controversy over the selection of New York-based Global Infrastructure Partners (GIP) to participate in the airport operator's privatisation.

The controversy arose because GIP was owned by Blackrock, reportedly the world’s biggest asset manager with significant investments directly in Israel, which since October 2023 has been mercilessly attacking Palestine, resulting in the deaths of thousands of innocent Palestinians.

Prime Minister Datuk Seri Anwar Ibrahim quelled criticism of the deal, saying foreign parties were only acquiring the existing 27 per cent public shareholding and that MAHB would still be owned by local interests with its chairman and chief executive officer being Malaysians.

As for air travel to and from Malaysia, this sector was buoyant, with passenger traffic for the first 10 months of the year reaching a whopping 80.3 million.

According to the Malaysian Aviation Commission, this has put Malaysia on track to meet its forecast of 95.4 million to 97.6 million passengers by year-end.

The outlook for Malaysia’s aviation industry remains positive for next year with robust growth expected to continue. Airlines are likely to expand routes, domestically and internationally, tapping into emerging markets and enhancing regional connectivity.

Open Sky Policy and liberalisation of Aviation

Universiti Kuala Lumpur Malaysian Institute of Aviation Technology economist (aviation and aerospace) Associate Professor Mohd Harridon Mohamed Suffian expressed hope that the Open Sky Concept will gain traction in ASEAN next year.

“This liberalisation of the aviation sector would allow consumers to access diverse travel packages and better meet their needs,” he told Bernama.

Nevertheless, the sector must contend with ongoing challenges, including global economic uncertainties and geopolitical tensions that could impact travel demand.

The rising cost of fuel and inflation could also affect operational expenses.

To tackle cost efficiency and fuel prices, the government, airport operators and airlines would focus on implementing eco-friendly initiatives, marking a transformative step toward a greener future for the aviation industry.

Expanding routes, fleet and MRO services

AirAsia expanded its domestic connectivity, adding 2,000 weekly flights and 150,000 seats across 40 key routes by end-2024. It has introduced 39 new routes across ASEAN and Central Asia.

Low-cost airlines, Thai VietJet and China's 9 Air are expected to start operations by the year-end.

KLIA now serves over 70 airlines, surpassing pre-pandemic levels of 69 airlines.

Malaysia Airlines has also announced plans to introduce direct flights to Charles de Gaulle Airport in Paris starting March 22, 2025.

Batik Air Malaysia looks to be the first Malaysian carrier to launch flight services between Timor-Leste’s capital Dili and Kuala Lumpur by the first quarter of next year.

In terms of fleet expansion, AirAsia restructured its order for 362 Airbus A321neo aircraft, converting 36 orders to A321LR (long-range) models, with deliveries starting in 2025, enabling the airline to enhance its narrow-body fleet with A321XLR and A321LR models.

Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, on another hand, took delivery of its first A330neo aircraft on November 29.

More planes in the sky also provided a fillip to the maintenance, repair and overhaul (MRO) industry.

A major beneficiary is Asia Digital Engineering Sdn Bhd (ADE), which launched its 14-line hangar on September 26, the largest hangar in the country.

It is expected to generate additional foreign revenue for the country.

This was further complemented by the resumption of narrow-body aircraft operations by six airlines at Sultan Abdul Aziz Shah Airport (LTSAAS) in Subang, which had previously halted jet operations in 2002.

Malaysia ramps up sustainable aviation initiatives

A key government initiative was the launch of the Malaysia Aviation Decarbonisation Blueprint on September 5, aimed at accelerating the commitment to net-zero carbon emissions by 2050 for the aviation sector.

MAG signed a memorandum of understanding with Airbus on February 19 this year to collaborate on comprehensive studies to reduce carbon emissions.

AirAsia also joined the move to partner with Airbus to advance research into aviation sustainability initiatives aimed at reducing carbon emissions in the ASEAN region.

The international airports in Kota Kinabalu and Langkawi achieved Airport Carbon Accreditation Level 1 Mapping in November, joining KLIA and over 600 airports globally in the journey toward net-zero emissions.

New charges and consumer protection

The year also saw the introduction of a revised Passenger Service Charge.

Also, to protect air travellers, the final Malaysian Aviation Consumer Protection Code 2016 mandates that airlines must issue refunds to consumers in the original mode of payment within 30 days.

CrowdStrike and flight delays

The CrowdStrike computer attack on July 19 caused major travel disruptions in Europe, especially airports in Germany, the United States, and Australia as well as AirAsia’s reservation and check-in systems.

It showed how vulnerable airlines and airports are to computer glitches which can cause global havoc.

While that subsided, MAG made headlines due to flight delays on Firefly flights at LTSAAS and Malaysia Airlines at KLIA and complaints from codeshare passengers.

The group has also been impacted by the delayed delivery of Boeing 737-8 aircraft this year. As a result, it decided to reduce its flights and routes between August and December 2024.

Key events to watch for next year include the resumption of the automated people mover system (Aerotrain) at KLIA in January, the progress of MAHB’s privatisation, the progress of Capital A's PN17 exit plan, and the arrival of new airlines including British Airways, flying to KLIA.

-- BERNAMA