Act 771 Malaysian Aviation Commission 2015

LAWS OF MALAYSIA
ONLINE VERSION OF UPDATED

TEXT OF REPRINT
Act 771
MALAYSIAN AVIATION
COMMISSION ACT 2015
As at 1 August 2018
2
MALAYSIAN AVIATION COMMISSION ACT 2015
Date of Royal Assent … … … … 25 August 2015
Date of publication in the Gazette … … 27 August 2015
Latest amendment made by

Act A1559 which came
into operation on …… … … 9 February 2018
3
LAWS OF MALAYSIA
Act 771
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title and commencement

2. Interpretation
PART II
THE COMMISSION
3. Establishment of the Commission

4. Common seal
5. Membership of the Commission
6. Alternate members
7. Tenure of office
8. Remuneration and allowances
9. Revocation of appointment and resignation
10. Vacation of office
11. Effect of cessation of membership
12. Committees
13. Disclosure of interest
14. First Schedule
15. Code of conduct
4 Laws of Malaysia ACT 771
Section
16. Disciplinary Panel and disciplinary proceedings
PART III
FUNCTIONS AND POWERS OF THE COMMISSION AND THE EXECUTIVE

CHAIRMAN
17. Functions of the Commission

18. Powers of the Commission
19. Commission to consult Director General of Civil Aviation
20. Delegation of the Commission’s functions and powers
21. Functions of the Executive Chairman
22. Temporary exercise of functions of the Executive Chairman
PART IV
EMPLOYEES OF THE COMMISSION
23. Appointment of employees of the Commission

24. Conditions of service, conduct and discipline
PART V
FINANCE
25. Aviation Commission Fund

26. Expenditure to be charged on the Fund
27. Public Service Fund
28. Conservation of the Fund
29. Bank accounts
30. Power to borrow
31. Investment
32. Financial procedure
33. Financial year
Malaysian Aviation Commission 5
Section
34. Accounts and reports
PART VI
LICENSING AND CHARGES
35. Air service licence

36. Air service permit
37. Ground handling licence
38. Aerodrome operator licence
39. Application for lincence or permit
40. Power to impose conditions
41. Duration of licence or permit
42. Renewal of licence or permit
43. Suspension or revocation of licence or permit
44. Surrender of licence or permit
45. Transfer or assignment of licence or permit
46. Power to set charges
PART VII
COMPETITION
Division 1
Interpretation and application
47. Interpretation
48. Application of this Part
Division 2
Anti-competitive agreement
49. Prohibited agreement

50. Relief of liability
51. Individual exemption
Section
52. Block exemption
Division 3
Abuse of dominant position
53. Abuse of dominant position is prohibited
Division 4
Mergers
54. Mergers
55. Notification of anticipated merger
56. Notification of merger
Division 5
Decision by the Commission
57. Interim measures
58. Finding of non-infringement
59. Finding of an infringement
60. Leniency regime
61. Enforcement of direction or decision
62. Power to accept undertaking
Division 6
General
63. Aviation service market review

64. Right of private action
65. Power to issue guidelines
PART VIII
AIR TRAFFIC RIGHT AND SLOT ALLOCATION

Section
66. Air traffic right

67. Slot allocation
PART IX
PUBLIC SERVICE OBLIGATIONS
68. Public service obligations
PART X
CONSUMER PROTECTION
69. Consumer code

70. Consumer complaint
71. Determination of consumer complaints
72. Recovery of unpaid financial penalty or costs
73. Enforcement of decisions on consumer complaint
PART XI
DISPUTE RESOLUTION
74. Disputes
75. Commission to decide on disputes
76. Decisions to be in writing
77. Registration of decisions
78. Enforcement of decisions
PART XII
ENFORCEMENT AND INVESTIGATION
79. Authorized officer

Section
80. Powers of enforcement, inspection and investigation

81. Power to require information
82. Power to conduct inspection
83. Power to investigate
84. Giving false or misleading information, evidence or document
85. Compliance order
86. Tipping off
87. Threat or reprisal prohibited
PART XIII
GENERAL
88. Appeals to the High Court

89. Civil aviation industry audit
90. Returns, reports, accounts and information
91. Conduct of prosecution
92. Offences by bodies corporate
93. Public servants and public officers
94. Obligation of secrecy
95. Representation in civil proceedings
96. Protection against suits and legal proceedings
97. Public Authorities Protection Act 1948
98. Power to make regulations
98A. Power to issue guidelines, circulars, directives, etc.
99. Power to amend Schedules
PART XIV
SAVINGS AND TRANSITIONAL
100. Savings for licences and permits

101. Savings for Rural Air Services Agreement
Section
102. Continuance of pending applications, etc.

103. Existing ground handling services
104. Existing agreements
105. Things done in anticipation of the enactment of this Act
FIRST SCHEDULE
SECOND SCHEDULE
THIRD SCHEDULE
11
LAWS OF MALAYSIA
Act 771
An Act to establish the Malaysian Aviation Commission to regulate

economic matters relating to the civil aviation industry and to provide
for its functions and powers and related matters.
[1 March 2016, P.U. (B) 88/2016]
ENACTED by the Parliament of Malaysia as follows:
PART I
PRELIMINARY
Short title and commencement
1. (1) This Act may be cited as the Malaysian Aviation

Commission Act 2015.
(2) This Act comes into operation on a date to be appointed by

the Minister by notification in the Gazette.
Interpretation
2. (1) In this Act, unless the context otherwise requires—

“aerodrome” means any area of land or water, including any

airport, airstrip (including water airstrip), heliport, building,
installation and equipment, for the use wholly or partly for the arrival,
departure or movement of aircraft;
“air traffic right” means―
(a) in relation to domestic routes, the right of an airline

licensed by the Commission to provide air services on
scheduled journeys within Malaysia, and includes the
points to be served, the type of aircraft to be used and the
capacity to be provided; or
(b) in relation to international routes, the right of an airline

licensed by the Commission and designated, nominated or
otherwise authorized by the Government to provide air
services on scheduled journeys from, to or over a country
under an air services agreement, and includes the points to
be served, the route on which the air services are to be
provided, the type of aircraft to be used and the capacity
to be provided;
“committee” means any committee established by the Commission

under section 12 or 71;
“Director General of Civil Aviation” means the Director General of

Civil Aviation Malaysia referred to in the Civil Aviation Act 1969
[Act 3];
“Fund” means the Aviation Commission Fund established under

section 25;
“Public Service Fund” means the Public Service Fund established

under section 27;
“airport” means the aggregate of the lands comprised within an

aerodrome including buildings, aircraft hangars, storage, facilities,
roads and car parks used or intended to be used in whole or in part for
the purposes of or in connection with the operation of such

aerodrome;
“Minister” means the Minister charged with the responsibility for

transport;
“public service obligation” means the provision of service for the

carriage by air or the use of any aircraft for the carriage of
passengers, mail or cargo for hire or reward on a scheduled journey
between aerodromes—
(a) where one or more aerodromes serve a region within

Malaysia that is remote or sparsely populated or is faced
with significant accessibility issues arising from its
geographical peripherality or lack of adequate surface
transport alternatives; or
(b) serving a route which is considered to be vital for the

economic and social development of Malaysia or to be in
the national interest,
which airlines would not assume if they were solely considering their
commercial interest;
“licensee” means a person licensed under this Act;
“permit holder” means a person holding a permit under this Act;
“Executive Chairman” means the Executive Chairman of the

Commission appointed under section 5;
“consumer” means a person who acquires or uses any aviation

service for personal use and does not acquire or use the service
primarily for the purpose of resupplying the service or providing any
aviation service;
“scheduled journey” means one of a series of journeys which is

undertaken between the same two places and which together amount
to a systematic services;
“non-scheduled journey” means a journey that is not a scheduled

journey;
“aviation service” means any of the following services:
(a) the carriage of passengers, mail or cargo for hire or

reward by air or by the use of any aircraft between two
or more places, of which at least one place is in
Malaysia;
(b) the provision in Malaysia of any of the ground handling

services as specified in the Second Schedule;
(c) the operation of 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; or
(d) any other service determined by the Commission to be

necessary or expedient for the carriage of passengers,
mail or cargo referred to in paragraph (a),
whether or not such service is provided by a licensee, permit holder

or otherwise;
“air transport service” means a commercial air service that is

operated for the purpose of transporting persons, personal belongings,
baggage, goods or cargo in an aircraft between two points;
“aircraft” means a machine that can derive support in the

atmosphere from the reactions of the air, other than the reactions of
the air against the surface of the earth;
“hire or reward”means any payment, consideration, gratuity or

benefit, directly or indirectly charged, demanded, received or
collected by any person for the use of an aircraft;
“Commission” means the Malaysian Aviation Commission

established under section 3;
“appointed date” means the date of this Act comes into operation.
PART II
THE COMMISSION
Establishment of the Commission
3. (1) A body corporate to be known as the “Suruhanjaya

Penerbangan Malaysia” or “Malaysian Aviation Commission” is
established.
(2) The Commission shall have perpetual succession and a

common seal.
(3) The Commission may sue and be sued in its corporate name.
(4) Subject to and for the purposes of this Act, the Commission
may, upon such terms as the Commission deems fit—
(a) enter into contracts;
(b) acquire, purchase, take, lease, hold, sell and enjoy any
movable and immovable property of every description or
any interest in such property vested in the Commission;
and
(c) convey, assign, surrender, yield up, charge, mortgage,

demise, reassign, transfer or otherwise dispose of, or deal
with, any movable or immovable property and any interest
in such property vested in the Commission.
Common seal
4. (1) The Commission shall have a common seal which shall bear
such device as the Commission shall approve and such seal may be
broken, changed, altered or made anew as the Commission thinks fit.
(2) Until a seal is provided by the Commission, a stamp bearing

the words “Suruhanjaya Penerbangan Malaysia” or “Malaysian
Aviation Commission” may be used and shall be deemed to be the
common seal of the Commission.
(3) The common seal shall be kept in the custody of the

Executive Chairman or such other person as may be authorized by the
Commission, and shall be authenticated by the Executive Chairman
or by such other person authorized by the Executive Chairman in
writing.
(4) All deeds, documents and other instruments purporting to be

sealed with the common seal and authenticated in accordance with
subsection (3) shall, until the contrary is proved, be deemed to have
been validly executed.
(5) Any deed, document and other instrument which, if executed

by a person not being a body corporate, is not required to be under
seal may in like manner be executed by a member of the Commission
or an employee of the Commission authorized in that behalf.
(6) The common seal of the Commission shall be officially and

judicially noticed.
Membership of the Commission
5. (1) The Commission shall consist of the following members:
(a) the Executive Chairman who shall be appointed by the

Prime Minister;
(b) two representatives of the Federal Government

consisting of—
(i) the Secretary General of the Ministry of Transport; and
(ii) the Director General of the Economic Planning Unit of

the Prime Minister’s Department; and
(c) not less than four but not more than six other members
who shall be appointed by the Minister after
consultation with the Prime Minister, and who, in the
opinion of the Minister, have experience or shown
capacity and professionalism in matters relating to
economics, finance, aviation, business, administration,
law or any other matter relevant to the functions of the
Commission.
(2) The Executive Chairman shall be a person who, in the opinion

of the Prime Minister, has experience, shown capacity and
professionalism in matters relating to economics, finance, aviation,
business or administration relevant to the functions of the
Commission.
(3) No person shall be a member of the Commission if he—
(a) holds office or employment in or relating to aviation

services;
(b) is involved in any business or other activity carried on

for the purpose of gain in or relating to aviation
services; or
(c) is or becomes involved in any activity which may

interfere with his independence in discharging his
duties.
(4) Without prejudice to subsection (3), any member of the

Commission, other than the members specified in paragraph 5(1)(b),
shall not, while being a member of the Commission, hold any other
office or employment, whether remunerated or not, without the prior
written approval of the Prime Minister.
Alternate members
6. (1) The Prime Minister shall, in relation to each member

appointed under paragraph 5(1)(b) appoint a person to be an alternate
member to attend, as an alternate to such member, meetings of the

Commission when such member is unable to attend for any reason.
(2) An alternate member who attends the meetings of the

Commission shall, for all purposes, be deemed to be a member of the
Commission.
(3) An alternate member shall, unless he sooner resigns his office

or his appointment is sooner revoked, cease to be an alternate
member when the member in respect of whom he is an alternate
member ceases to be a member of the Commission.
Tenure of office
7. Subject to such conditions as may be specified in his instrument

of appointment, a member of the Commission, other than the
members specified in paragraph 5(1)(b), shall, unless he sooner
resigns or vacates his office or his appointment is sooner revoked,
hold office for a term not exceeding three years and is eligible for
reappointment for a maximum period of two consecutive terms.
Remuneration and allowances
8. (1) The Executive Chairman shall be paid such remuneration

and allowances as the Prime Minister may determine.
(2) All other members of the Commission shall be paid allowances

at such rates as the Prime Minister may determine.
Revocation of appointment and resignation
9. (1) The Prime Minister may, at any time, revoke the

appointment of the Executive Chairman.
(2) The Minister may, at any time, revoke the appointment of any
member of the Commission specified in paragraph 5(1)(c) after
consultation with the Prime Minister.
(3) A member of the Commission, other than the members

specified in paragraph 5(1)(b), may, at any time, resign his ofiice by
giving notice in writing to the Prime Minister or the Minister, as the
case may be.
Vacation of office
10. (1) The office of a member of the Commission is vacated—
(a) if he dies;
(b) if there has been proved against him, ore he has been
convicted on, a charge in respect of―
(i) an offence involving fraud, dishonesty or moral

turpitude;
(ii) an offence under any law relating to corruption or

under section 13; or
(iii) any other offence punishable with imprisonment (in

itself only or in addition to or in lieu of a fine) for
more than two years;
(c) if he becomes a bankrupt;
(d) if he is of unsound mind or is otherwise incapable of

discharging his duties;
(e) in the case of the Executive Chairman, if he absents

himself from three consecutive meetings of the
Commission without leave of the Prime Minister;
(f) in the case of a member of the Commission, other than

the Executive Chairman and the members specified in
paragraph 5(1)(b), if he absents himself from three
consecutive meetings of the Commission without leave

of the Executive Chairman;
(g) if his resignation is accepted by the Prime Minister or

Minister, as the case may be; or
(h) if his appointment is revoked by the Prime Minister or

Minister, as the case may be, pursuant to section 9 or by
the Prime Minister pursuant to section 16.
Effect of cessation of membership
11. Where any person ceases to be a member of the Commission—
(a) another person shall be appointed in his place in

accordance with the provisions applying; and
(b) he shall not, within two years from the cessation of his
membership, enter into any contract of service or carry
out or be involved in any business or other activity
carried on for the purpose of gain, in or relating to,
aviation services.
Committees
12. (1) The Commission may establish such committees as it

considers necessary or expedient to assist it in the performance of its
functions.
(2) The Commission may elect any of its members to be the

chairman of a committee.
(3) The Commission may appoint any person to be a member of

any committee established under subsection (1).
(4) A member of a committee shall hold office on such terms and

conditions as may be specified in his letter of appointment and is
eligible for reappointment.
(5) The Commission may, at any time, revoke the appointment of

any member of a committee.
(6) A member of a committee may, at any time, resign by giving

a notice in writing to the chairman of the committee and the
Commission.
(7) A committee shall be subject to and act in accordance with

any direction given to the committee by the Commission.
(8) The Commission may at any time discontinue or alter the

constitution of a committee.
Disclosure of interest
13. (1) Any member of the Commission or a committee who has or

acquires a direct or indirect interest by himself, through a member of
his family or his associate in relation to any matter under discussion
by the Commission or the committee shall disclose to the
Commission, or the committee, as the case may be, the fact of his
interest and the nature and extent of that interest.
(2) A disclosure under subsection (1) shall be recorded in the

minutes of the meeting of the Commission or the committee, as the
case may be, in which the matter is discussed and, after the
disclosure, the member—
(a) shall not be present or take part in any discussion or

decision of the Commission or the committee, as the
case may be, about the matter; and
(b) shall be disregarded for the purpose of constituting a

quorum of the Commission or the committee, as the
case may be,
when the matter is discussed or decided upon.
(3) A member of the Commission or a committee who fails to

disclose his interest as provided under subsection (1) 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.
(4) No act or proceedings of the Commission or a committee

shall be invalidated on the ground that any member of the
Commission or the committee has contravened this section.
(5) For the purpose of this section—
“a member of his family”, in relation to a member of the

Commission or a committee, includes―
(a) his spouse;
(b) his parent including a parent of his spouse;
(c) his child including an adopted child or stepchild;
(d) his brother or sister including a brother or sister of

his spouse; and
(e) a spouse of his child, brother or sister; and
“associate”, in relation to a member of the Commission or a

committee, means―
(a) a person who is a nominee or an employee of the

member;
(b) a firm of which the member or any nominee of his is

a partner;
(c) a partner of the member;

(d) a trustee of a trust under which the member or a

member of his family is a beneficiary; or
(e) any corporation within the meaning of the

*
Companies Act 2016 [Act 777], of which or in
which the member or any nominee of his or a
member of the member’s family is a director or has a
substantial shareholding.
First Schedule
14. The provisions of the First Schedule shall apply to the members
of the Commission and the members of a committee appointed under
section 12.
Code of conduct
15. (1) The Commission shall prescribe a code of conduct to be

observed by the members of the Commission and the members of a
committee to the extent and in such manner as it considers
appropriate.
(2) The members of the Commission and the members of a

committee shall comply with the provisions prescribed in the code of
conduct.
(3) If it comes to the knowledge of the Commission that there is

an alleged breach of the code of conduct, the matter shall be referred
to the Disciplinary Panel.
*
NOTE— This Act has repealed the Companies Act 1965 [Act 125] w.e.f.
31 January 2017
Disciplinary Panel and disciplinary proceedings
16. (1) Upon receipt of the matter under subsection 15(3), the
Disciplinary Panel shall—
(a) inform the member of the Commission or the

committee in writing of the acts of the alleged
breach of the code of conduct; and
(b) give the member of the Commission or the

committee an opportunity to make a written
representation within a period of thirty days from
the date he is informed of the alleged breach of the
code of conduct.
(2) The Disciplinary Panel shall consist of the following persons:
(a) in the case of disciplinary proceedings against any

member of the Commission, three persons to be
appointed by the Prime Minister; or
(b) in the case of disciplinary proceedings against any

member of the committee, three persons to be
appointed by the Executive Chairman.
(3) The appointment of the members of the Disciplinary Panel

shall be on an ad hoc basis.
(4) If, after considering the member of the Commission’s or the

committee’s representation, if any, the Disciplinary Panel finds
that—
(a) there is no merit in the matter, the Disciplinary Panel

shall dismiss the matter and notify the Commission
and the member of the Commission or the committee
of its decision; or
(b) there is merit in the matter, invite the member of the

Commission or the committee to appear before the
Disciplinary Panel to be heard.
(5) If, after due consideration of the representation made by the

member of the Commission or the committee who appears before the
Disciplinary Panel pursuant to paragraph (4)(b), the Disciplinary
Panel is satisfied that—
(a) the breach is proven, the Disciplinary Panel may

recommend to the Prime Minister or the Commission,
as the case may be, that the member of the
Commission or the committee be removed from being
a member; or
(b) the breach is not proven, the Disciplinary Panel shall

dismiss the matter.
(6) After receiving the recommendation of the Disciplinary Panel

under paragraph (5)(a), the Prime Minister or the Commission, as the
case may be, shall revoke the appointment of the member of the
Commission or the committee and impose a financial penalty of not
less than ten thousand ringgit and not more than five hundred
thousand ringgit.
PART III
FUNCTIONS AND POWERS OF THE COMMISSION AND THE EXECUTIVE

CHAIRMAN
Functions of the Commission
17. (1) The Commission shall have the following functions:

(a) to regulate economic matters relating to the civil
aviation industry including—
(i) to improve connectivity, both globally and
locally, so as to promote economic ties,
integration and growth, and trade, investment

and tourism;
(ii) to encourage effective competition within the

civil aviation industry by promoting an
economic environment which allows Malaysian
carriers to maintain their ability to compete
effectively in the civil aviation market in a
sustainably profitable, efficient and fair manner;
(iii) to promote the efficient, economic and profitable

operation of aerodromes and ground handling
services;
(iv) to promote timely investments in the civil aviation

industry to meet Malaysia’s evolving demand and
development needs; and
(v) to maximise the economic value of any financial

support granted by the Federal Government to
the civil aviation industry and to seek and
promote ways to reduce any such financial
support over time;
(b) to provide a mechanism for the protection of consumers

including—
(i) to promote an environment which allows

consumers in relation to the civil aviation
industry to have access in a transparent manner
to choices of products and services of high
quality and at fair prices;
(ii) to receive and disseminate information and

views on matters of interest to consumers or
services provided by licensees and permit
holders;
(iii) to consult the industry, government and other

consumer groups on matters of interest to
consumers; and
(iv) to provide a mechanism for the resolution of

consumer complaints;
(c) to provide a mechanism for dispute resolution between

the providers of aviation services;
(d) to administer, allocate and manage air traffic rights;
(e) to monitor slot allocation for airlines or other aircraft

operators;
(f) to administer and manage public service obligations;
(g) to facilitate and co-ordinate matters of interest to the

Malaysian civil aviation industry between the providers
of aviation services and government agencies, locally and
internationally; and
(h) to perform any other functions that are incidental or

consequential to any of its functions under this Act.
(2) Subject to this Act, the Commission shall be independent in

the performance of its functions.
(3) The Commission in performing its functions shall have regard

to any international agreement to which Malaysia is a party and shall
not act contrary to the international obligation or the interest of
Malaysia.
Powers of the Commission
18. (1) The Commission shall have the power to do all things
necessary or expedient for or in connection with the performance of
its functions under this Act.
(2) Without prejudice to the generality of subsection (1), the

powers of the Commission shall include the power—
(a) to carry on all activities which appears to the

Commission to be requisite, advantageous or
convenient for or in connection with the performance
of its functions;
(b) to co-operate or act in association with any government
agency, any company or corporation, or any body or
person, whether local or foreign;
(c) to require the furnishing of information by the

stakeholders in the civil aviation industry to assist the
Commission in the performance of its functions;
(d) to utilise all the property of the Commission, movable

and immovable, in such manner as the Commission
thinks expedient including the raising of loans by
mortgaging such property;
(e) to appoint such agents, experts or consultants as the

Commission thinks fit for the purpose of performing its
functions;
(f) to impose fees, costs, or any other charges as the

Commission thinks fit for services rendered by the
Commission;
(fa) to impose and collect charges on passengers at airports

in Malaysia for regulatory services rendered by the
Commission pursuant to this Act;
(g) to formulate and implement human resource

development and funding and co-operation
programmes for the proper and effective performance
of its functions;
(h) to grant loans and scholarships to employees of the

Commission for such purposes as may be approved by
the Minister;
(i) to publish and disseminate information about matters

relevant to the functions of the Commission; and
(j) to do anything incidental to any of its functions and

powers.
Commission to consult Director General of Civil Aviation
19. The Commission shall consult the Director General of Civil

Aviation on, or relating to, any technical, safety and security issues or
other related issues.
Delegation of the Commission’s functions and powers
20. (1) The Commission may, in writing, delegate its functions and
powers which relate to operational matters only to—
(a) a member of the Commission; or
(b) a committee.
(2) The Commission may delegate to a member of the

Commission or a committee, as the case may be, the authority to
sanction expenditure from the Fund or the Public Service Fund or any
other moneys vested in and under the control of the Commission up
to such limit as the Commission shall specify.
(3) A member of the Commission or committee delegated with

such function or power under subsection (1) or (2) shall be bound to
observe and have regard to all conditions and restrictions imposed by
the Commission and all requirements, procedures and matters
specified by the Commission.
(4) Any function or power delegated under this section shall be

performed and exercised in the name and on behalf of the Commission.
(5) A delegation under this section shall not preclude the

Commission itself from performing or exercising at any time any of
the delegated functions or powers.
Functions of the Executive Chairman
21. (1) The Executive Chairman shall have the following

functions:
(a) the overall administration and management of the

functions and the day-to-day affairs of the
Commission;
(b) the administration and management of the Fund;
(c) general control of the employees of the Commission;
(d) to advise and provide recommendations from an

economic perspective to―
(i) the Minister on policies and plans on all matters

relating to civil aviation and to develop strategies
in line with such policies and plans; and
(ii) the relevant government agencies on all matters

relating to civil aviation;
(e) to ensure that airlines carry out the public service

obligations programmes; and
(f) to manage or arrange for the conduct of researches,

assessments, studies and advisory services, to collate,
analyse and publish information, statistics and factors
influencing or relevant to the economic development of
the civil aviation industry, and to disseminate such
relevant information, statistics and factors to the
relevant government agencies, licensees, the public and
investors or potential investors investing in such
industry.
(2) In exercising the functions under paragraphs (1)(b), (d) and

(e), the Executive Chairman shall consult the Commission.
Temporary exercise of functions of the Executive Chairman
22. The Prime Minister may appoint temporarily any member of the
Commission to act as the Executive Chairman for the period—
(a) when the office of the Executive Chairman is vacant;
(b) when the Executive Chairman is absent from duty or from

Malaysia; or
(c) when the Executive Chairman is, for any other reason,
unable to perform the duties of his office.
(2) In this section, the term “officers” includes the Chairman and
the Deputy Chief Executive.
PART III
EMPLOYEES OF THE COMMISSION
Appointment of employees of the Commission
23. The Commission may, from time to time, employ such number
of employees as the Commission thinks desirable and necessary and
upon such terms as it considers appropriate.
Conditions of service, conduct and discipline
24. (1) The Commission may determine the conditions of service of

its employees.
(2) The Commission shall have disciplinary authority over all its
employees and shall exercise disciplinary control over the employees.
(3) The Commission may prescribe such regulations to provide

for the conduct and discipline of its employees.
(4) The regulations prescribed under this section may include—
(a) provisions for the establishment of appropriate

disciplinary committee and the procedures to be
complied with;
(b) provisions for the establishment of a disciplinary appeal

committee to hear appeals from the decision of a
disciplinary committee and the procedures to be
complied with; and
(c) provisions for—
(i) the interdiction with reduction in salary or other

remuneration; or
(ii) the suspension without salary or other

remuneration,
of an employee of the Commission during the pendency

of the disciplinary proceedings.
(5) The regulations prescribed under this section may create such
disciplinary offences and provide for such disciplinary punishments
as the Commission may consider appropriate, and the punishments so
provided may extend to dismissal and reduction in rank.
(6) The regulations prescribed under this section shall, in

prescribing the procedure for disciplinary proceedings, provide for an
opportunity for representations to be made by the employee of the
Commission against whom the disciplinary proceedings are taken
before a decision is arrived at by the disciplinary committee on such
disciplinary charge laid against such person.
PART V
FINANCE
Aviation Commission Fund
25. (1) A fund to be known as the “Aviation Commission Fund” to

be administered and controlled by the Commission is established.
(2) The Fund shall consist of—
(a) such sums as may be provided by the Parliament for the

purposes of this Act from time to time;
(b) all or any part of fees, costs, financial penalties and

other charges imposed by or payable to the Commission
under this Act and its subsidiary legislation;
(c) all moneys derived as income from capital-guaranteed

investments by the Commission;
(d) all moneys derived from the sale, disposal, lease or hire,
or any other dealing with, any property, mortgages,
charges or debentures vested in or acquired by the
Commission;
(e) sums borrowed by the Commission under section 30;
(f) such sums as may be paid to the Commission from time

to time for loans made by the Commission; and
(g) all other moneys lawfully received by the Commission,

other than for the purposes of funding public service
obligations.
(3) The moneys referred to in paragraph (2)(a) which are in excess

of the financial requirements of the Commission for the performance
of its functions may be paid into the Federal Consolidated Fund.
Expenditure to be charged on the Fund
26. The Fund shall be expended for the purposes of—
(a) paying any expenditure lawfully incurred by the

Commission except for expenditure to be paid from the
Public Service Fund under section 27;
(b) paying for the remuneration, allowances and other

expenses of the members of the Commission, members
of the committees and employees of the Commission;
(c) paying any other expenses, costs or expenditure in

relation to the procurement of goods and services,
including the engagement of consultants, legal fees and
costs and other fees and costs properly incurred or
accepted by the Commission in the performance of its
functions or the exercise of its powers under this Act,
but excluding expenditure to be paid from the Public
Service Fund under section 27;
(d) acquiring land and other assets, and erecting buildings,

and carrying out any other undertakings in the
performance of its functions or the exercise of its
powers under this Act;
(e) repaying any moneys borrowed under section 30 and the

interest due on the borrowed moneys; and
(f) generally paying any expenses for carrying into effect

the provisions of this Act.
Public Service Fund
27. (1) A fund to be known as the “Public Service Fund” to be

administered and controlled by the Commission is established.
(2) The Public Service Fund shall consist of—
(a) such sums as may be provided by the Parliament for

the purpose of funding public service obligations;
and
(b) all other moneys lawfully received by the

Commission for the purpose of funding public
service obligations.
(3) The Public Service Fund shall be expended for the purposes
of paying any airlines performing public service obligations and any
expenditure lawfully and directly incurred by the Commission in
administering and managing the public service obligations.
Conversation of the Fund
28. It shall be the duty of the Commission to conserve the Fund by

so performing its functions and exercising its powers under this Act
to secure that the total revenues of the Commission are sufficient to
meet all sums properly chargeable to its revenue account, including
depreciation and interest on capital, taking one year with another.
Bank accounts
29. The Commission shall open and maintain an account or

accounts with such banks in Malaysia as the Commission thinks fit,
and every account shall be operated upon in such manner as may be
authorized by the Commission for such purpose from time to time.
Power to borrow
30. The Commission may, from time to time, borrow in such form
and on such terms as may be approved by the Minister, with the
concurrence of the Minister of Finance, any money required by the
Commission for meeting any of its obligations or discharging any of
its functions or powers under this Act.
Investment
31. The moneys of the Fund, insofar as they are not required to be
expended by the Commission under this Act, may be placed in such
capital-guaranteed investments as the Minister may, with the
concurrence of the Minister of Finance, approve.
Financial procedure
32. Subject to this Act, the Commission shall determine its own
financial procedure.
Financial year
33. The financial year of the Commission shall begin on 1 January

and end on 31 December of each year.
Accounts and reports
34. (1) The Commission shall cause proper accounts of the Fund
and the Public Service Fund and reports of its activities to be kept
and shall, as soon as practicable after the end of each financial year,
cause to be prepared for that financial year—
(a) a statement of accounts of the Commission which

shall include the balance sheet and account of
income and expenditure; and
(b) a report of its activities.
(2) The Commission shall, as soon as possible, send a copy of the

statement of accounts certified by the auditors, a copy of the auditors’
report and a copy of the reports of its activities to the Minister and the
Minister shall cause the same to be laid before both Houses of
Parliament.
(3) The Statutory Bodies (Accounts and Annual Reports) Act

1980 [Act 240] shall apply to the Commission.
PART VI
LICENSING AND CHARGES
Air service licence
35. (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 Commission.
(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 undertakes to carry by air or uses any aircraft
for the carriage of passengers, mail or cargo for hire or reward in
contravention of 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
36. (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 Commission.
(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.
(3) Any person who undertakes to carry by air or uses any

aircraft for the carriage of passengers, mail or cargo in contravention
of 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
37. (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 Commission.
(2) No person shall engage any ground handling operator unless

the operator is licensed under this Act.
(3) Any person who fails to comply with 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
38. (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 Commission.
(2) Any person who fails to comply with this section commits an
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
39. (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 determined by the
Commission.
(2) The application shall be accompanied by such fees as may be
prescribed by the Commission.
(3) After receipt of the application, documents, information and

fee, the Commission shall consider the application having regard to
such requirements as may be prescribed.
(4) Where the Commission is not satisfied that the applicant has
fulfilled the requirements, the Commission shall afford the applicant
an opportunity to amend, rectify or supplement his application within
such time as may be determined by the Commission.
(5) The failure of the applicant to amend, rectify or supplement

his application under subsection (4) to the satisfaction of the
Commission shall render the application to be deemed withdrawn.
(6) Where the Commission is satisfied that the applicant has

fulfilled the requirements, the Commission may issue such licence or
permit, subject to the payment of the prescribed fee.
Power to impose conditions
40. (1) Subject to this Act, the Commission may attach to a

licence or permit issued under this Part such conditions as it may
think fit, and in particular, any condition which the Commission
considers desirable for public interest, in the interest of safety,
security and facilitation, or in order to prevent uneconomic
competition.
(2) The Commission may, at any time in its discretion, add,

cancel or vary any of the conditions attached to a licence or permit
under this section.
(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
41. A licence or permit granted or issued under this Part shall be

valid for such period as may be prescribed by the Commission.
Renewal of licence or permit
42. (1) Subject to subsections (2) and (3), the Commission may,
on an application by a licensee or permit holder, renew such person’s
licence or permit on such conditions as the Commission 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 Commission thinks reasonable, the Commission
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 Commission.
Suspension or revocation of licence or permit
43. The Commission 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 of the provisions of this Act or any of the 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 it 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 Commission shall not revoke or suspend a licence or

permit unless it 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 should 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 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.
(4) It shall be the duty of each air service licensee or air service
permit holder to inform the Commission, 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 issued under this
Part to the Commission 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
revocation of the licence or permit return the licence or
permit, as the case may be, to the Commission; or
(b) has been suspended, licence or permit shall have no

effect during the period of suspension.
Surrender of licence or permit
44. (1) A licensee or permit holder may surrender his licence or

permit by submitting to the Commission with 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 Commission receives the notice under
subsection (1) or on such other date as may be specified by the
Commission.
(3) The surrender of a licence or permit under subsection (1) shall

be irrevocable unless the Commission 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 Commission pursuant to the
surrender of the licence or permit; and
(b) forward the licence or permit to the Commission on the

effective date of the surrender of the licence or permit.
Transfer or assignment of licence or permit
45. (1) Subject to subsection (3), a licence or permit 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)

exceeding one million ringgit or to imprisonment for a term not
exceeding three years or to both.
(3) Notwithstanding paragraph 43(1)(c), the Commission may, in

the event of the liquidation of a licensee or a permit holder, where a
receiver or manager is appointed in relation to the business of such
licensee or permit holder, or where for any reason the Commission is
satisfied that it would be unjust not to do so, authorize the transfer of
such licence or permit.
Power to set charges
46. (1) The Commission shall regulate charges for aviation

services.
(2) In carrying out its function under subsection (1), the

Commission shall have the power to—
(a) set charges, including maximum charges, or establishing

the method for determination of such charges for
aviation services;
(b) carry out reviews of passenger service charges, landing

fees and parking fees, third party ground handling
charges and other charges for aviation services at such
intervals as the Commission thinks fit; and
(c) following such reviews, revise any charges set or

method established under paragraph (a) as the
Commission thinks fit.
(3) For the purposes of paragraphs (2)(a) and (c), the

Commission 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 Commission;
(e) the consumer and investor interests;
(f) the return on assets for the licensees or permit holder;

and
(g) any other factors the Commission considers relevant.
(4) The Commission shall publish all the charges determined by

the Commission in the Gazette.
PART VII
COMPETITION
Division 1
Interpretation and application
Interpretation
47. In this Part, unless the context otherwise requires—
“concerted practice” means any form of coordination between

enterprises which knowingly substitutes practical co-operation
between them for the risks of competition and includes any practice
which involves direct or indirect contact or communication between
enterprises, the object or effect of which is either—
(a) to influence the conduct of one or more enterprises in an

aviation service market; or
(b) to disclose the course of conduct which an enterprise has

decided to adopt or is contemplating to adopt in an
aviation service market, in circumstances where such
disclosure would not have been made under normal
conditions of competition;
“dominant position” means a situation in which one or more

enterprises possess such significant power in an aviation service
market to adjust prices or outputs or trading terms, without effective
constraint from competitors or potential competitors;
“aviation service market” means a market for aviation services in

Malaysia or in any part of Malaysia;
“agreement” means any form of contract, arrangement or

understanding, whether or not legally enforceable, between
enterprises, and includes a horizontal agreement, a vertical
agreement, an airline code sharing, alliance, partnership or joint
venture agreement, a decision by an association and concerted
practices;
“horizontal agreement” means an agreement between enterprises

each of which operates at the same level in the production or
distribution chain;
“vertical agreement” means an agreement between enterprises

each of which operates at a different level in the production or
distribution chain; and
“enterprise” means any individual, body corporate,

unincorporated body of persons or any other entity carrying on
commercial activities relating to aviation services, and for the
purposes of this Act, a parent and subsidiary company shall be
regarded as a single enterprise if, despite their separate legal entity,
they form a single economic unit within which the subsidiaries do not
enjoy real autonomy in determining their actions in the aviation
service market.
Application of this Part
48. (1) This Part applies to any commercial activity, agreement or

merger affecting aviation services both within and, subject to
subsection (2), outside Malaysia.
(2) In relation to the application of this Part outside Malaysia, this

Part applies to any commercial activity, agreement or merger
transacted or executed outside Malaysia which has an effect on
competition in any aviation service market in Malaysia.
(3) This Part shall not apply to any commercial activity,

agreement or merger specified in the Third Schedule.
(4) For the purposes of this Part, “commercial activity” means

any activity of a commercial nature but does not include—
(a) any activity, directly or indirectly, in the exercise of

governmental authority;
(b) any activity conducted based on the principle of solidarity;

and
(c) any purchase of aviation services not for the purposes of

offering aviation services as part of an economic activity.
Division 2
Anti-competitive agreement
Prohibited agreement
49. (1) An agreement between enterprises is prohibited insofar as

the agreement has the object or effect of significantly preventing,
restricting or distorting competition in any aviation service market.
(2) Without prejudice to the generality of subsection (1), a

horizontal agreement between enterprises which has the object to—
(a) fix, directly or indirectly, a purchase or selling price or any

other trading conditions;
(b) share the aviation service market or sources of supply;

(c) limit or control—
(i) production;
(ii) market outlets or market access;
(iii) technical or technological development; or
(iv) investment; or
(d) perform an act of bid rigging,
in connection with aviation services, is deemed to have the object of

significantly preventing, restricting, or distorting competition in any
aviation service market.
(3) Any enterprise which is a party to an agreement which is

prohibited under this section shall be liable for infringement of the
prohibition.
Relief of liability
50. Notwithstanding section 49, an enterprise which is a party to

an agreement may relieve its liability for the infringement of the
prohibition under section 49 based on the following reasons:
(a) there are significant identifiable technological,

efficiency or social benefits directly arising from the
agreement;
(b) the benefits could not reasonably have been provided by

the parties to the agreement without the agreement
having the effect of preventing, restricting or distorting
competition;
(c) the detrimental effect of the agreement on competition is

proportionate to the benefits provided; and
(d) the agreement does not allow the enterprise concerned to

eliminate competition completely in respect of a
substantial part of the aviation services.
Individual exemption
51. (1) An enterprise may apply to the Commission for an

exemption with respect to a particular agreement from the prohibition
under section 49.
(2) The Commission may, by order published in the Gazette,

grant the exemption if, in the opinion of the Commission, the
agreement is one to which section 50 applies.
(3) An exemption granted under this section is referred to as an

“individual exemption”.
(4) The individual exemption granted by the Commission may

be—
(a) subject to any condition or obligation as the Commission

considers it appropriate to impose; and
(b) for a limited duration as specified in the order.
(5) An individual exemption may provide for the exemption to

have effect from a date earlier than that on which the order is made.
(6) If the Commission is satisfied that—
(a) there has been a material change of circumstances from

the time when the Commission granted the individual
exemption; or
(b) an obligation has been breached,
the Commission may, by order published in the Gazette—

(i) cancel the individual exemption;
(ii) vary or remove any condition or obligation; or
(iii) impose additional condition or obligation.
(7) If the Commission is satisfied that—
(a) the information on which the Commission based its

decision to grant an individual exemption is false or
misleading in a material particular; or
(b) any condition has been breached,
the Commission may, by order published in the Gazette, cancel the

individual exemption.
(8) Any action taken by the Commission under subsection (6) shall
have effect from the date the order is made.
(9) An individual exemption which is cancelled—

(a) by virtue of paragraph (7)(a) shall be void ab initio; or
(b) by virtue of paragraph (7)(b) shall have effect from the date
the condition is breached.
Block exemption
52. (1) If agreements which fall within a particular category of

agreements are, in the opinion of the Commission, likely to be
agreements to which section 50 applies, the Commission may, by
order published in the Gazette, grant an exemption to the particular
category of agreements.
(2) An exemption granted under this section is referred to as a

“block exemption”.
(3) An agreement which falls within a category specified in a

block exemption is exempt from the prohibition under section 49.
(4) The Commission in granting the block exemption may impose

any condition or obligation subject to which a block exemption shall
have effect.
(5) A block exemption may provide that—
(a) if there is a breach of a condition imposed by the block

exemption, the Commission may, by notice in writing,
cancel the block exemption in respect of the agreement
from the date of the breach;
(b) if there is a failure to comply with an obligation imposed

by the block exemption, the Commission may, by notice
in writing, cancel the block exemption in respect of the
agreement;
(c) if the Commission considers that a particular agreement is

not one to which section 50 applies, the Commission may,
by notice in writing, cancel the block exemption in respect
of the agreement from such date as the Commission may
specify;
(d) the block exemption shall cease to have effect at the end
of a period specified in the order; or
(e) the block exemption is to have effect from a date earlier

than that on which the order is made.
(6) The Commission shall, before granting a block exemption—
(a) publish details of the Commission’s proposed block

exemption;
(b) give at least thirty days from the date of publication to

allow any submission to be made by members of the
public in relation to the proposed block exemption; and
(c) give due consideration to any submission made.
Division 3
Abuse of dominant position
Abuse of dominant position is prohibited
53. (1) An enterprise is prohibited from engaging, whether

independently or collectively, in any conduct which amounts to an
abuse of a dominant position in any aviation service market.
(2) The Commission may publish guidelines specifying the types

of conduct which would or would not be prohibited under subsection
(1).
(3) This section does not prohibit an enterprise in a dominant

position from taking any step which has reasonable commercial
justification or represents a reasonable commercial response to the
market entry or market conduct of a competitor.
(4) The fact that the market share of any enterprise is above or
below any particular level shall not in itself be regarded as conclusive
as to whether that enterprise occupies, or does not occupy, a
dominant position in that market.
Division 4
Mergers
Mergers
54. (1) Mergers that have resulted, or may be expected to result, in

a substantial lessening of competition in any aviation service market
are prohibited.
(2) For the purposes of this Division, a merger occurs if—
(a) two or more enterprises, previously independent of one

another, merge;
(b) one or more persons or enterprises acquire direct or indirect

control of the whole or part of one or more enterprises;
(c) the result of an acquisition by one enterprise (the first

enterprise) of the assets (including goodwill), or a
substantial part of the assets, of another enterprise (the
second enterprise) is to place the first enterprise in a
position to replace or substantially replace the second
enterprise in the business or, as appropriate, the part
concerned of the business in which that enterprise was
engaged immediately before the acquisition; or
(d) a joint venture is created to perform, on a lasting basis, all

the functions of an autonomous economic entity.
(3) For the purposes of this Division, control, in relation to an

enterprise, shall be regarded as existing if, by reason of rights,
contracts or any other means, or any combination of rights, contracts
or other means, decisive influence is capable of being exercised with
regard to the activities of the enterprise and, in particular, by—
(a) ownership of, or the right to use all or part of, the assets of
the enterprise; or
(b) rights or contracts which enable decisive influence to be

exercised with regard to the composition, voting or
decisions of the enterprise.
(4) For the purposes of this Division, control is acquired by any

person or other enterprise if he or it—
(a) becomes a holder of the rights or contracts, or entitled to use

the other means, referred to in subsection (3); or
(b) although not becoming such a holder or entitled to use those

other means, acquires the power to exercise the rights
derived therefrom.
(5) In determining whether influence of the kind referred to in

subsection (3) is capable of being exercised, regard shall be had to all
the circumstances of the matter and not solely to the legal effect of
any instrument, deed, transfer, assignment or other act done or made.
(6) For the purposes of this Division, a merger shall not be

deemed to occur if—
(a) the person acquiring control is a receiver or liquidator acting

as such or is an underwriter acting as such
(b) all of the enterprises involved in the merger are, directly or

indirectly, under the control of the same enterprise;
(c) control is acquired solely as a result of a testamentary

disposition, intestacy or the right of survivorship under a
joint tenancy; or
(d) control is acquired by an enterprise the normal activities of

which include the carrying out of transactions and dealings
in securities for its own account or for the account of others,
in the circumstances specified in subsection (7).
(7) The circumstances referred to in paragraph (6)(d) are as

follows:
(a) the control concerned is constituted by the enterprise’s

holding, on a temporary basis, through the securities
acquired in another enterprise; and
(b) any exercise by the enterprise of voting rights in respect of

those securities, whilst that control subsists—
(i) is for the purpose of arranging for the disposal,

within the specified period, of all or part of the
other enterprise or its assets or securities; and
(ii) is not for the purpose of determining the manner

in which any activity of the other enterprise,
being an activity that could affect competition in
an aviation service market, is carried on.
(8) In subsection (7), “specified period” means—
(a) the period of twelve months from the date on which

control of the other enterprise was acquired; or
(b) if in a particular case the enterprise shows that it is not

reasonably possible to effect the disposal concerned
within the period referred to in paragraph (a), within such
longer period as the Commission determines and specifies
with respect to that case.
Functions of Shariah Advisory Council
55. (1) A party to an anticipated merger of the relevant type which

applies for the anticipated merger to be considered under this section
may—
(a) notify the Commission of the anticipated mergr; and
(b) apply to it for a decision
(2) Subject to sections 59 and 62, on an application under this

section, the Commission may make a decision as to—
(a) whether the prohibition in section 54 will be infringed

by the anticipated merger, if carried into effect; and
(b) if it will not be infringed, whether it is—

(i) because of the effect of an exclusion which will

apply if the anticipated merger is carried into effect;
(ii) because the anticipated merger, if carried into

effect, is exempted by the Minister from the
application of the prohibition under subsection
59(2); or
(iii) because an undertaking has been accepted pursuant

to section 62.
(3) Subject to subsection (4), where the Commission makes a

decision that an anticipated merger, if carried into effect, will not
infringe the prohibition in section 54, the Commission may, if it
thinks fit, state that the decision shall be valid only for the period it
specifies therein.
(4) Before the expiry of the period referred to in subsection (3), if

any, an application may be made by all parties to the anticipated
merger who applied to the Commission for a decision on the
anticipated merger under this section for that period to be extended.
(5) Where an application for an anticipated merger to be

considered has been made to the Commission in accordance with
subsection (1) and the anticipated merger is carried into effect before
the Commission makes a decision under subsection (2) in respect
thereof, the application relating to the anticipated merger—
(a) may be treated by the Commission as if it were an

application for the resulting merger to be considered made in
accordance with section 56; and
(b) the Commission may make a decision under section 56 in

respect of the resulting merger.
(6) For the purpose of subsection (5), the Commission may

make a decision under subparagraph 56(2)(b)(ii) notwithstanding the
exemption was granted by the Minister under subsection 59(2) in

respect of the anticipated merger.
(7) Notwithstanding subsection (5), the Commission may refuse

to make any decision in respect of a merger referred to therein and
require any party involved in the merger to apply to the Commission
for the merger to be considered under subsection 56(1).
(8) In this section, “an anticipated merger of the relevant type”

means an anticipated merger of the type described by guidelines
made under paragraph 65(2)(c).
Notification of merger
56. (1) A party involved in a merger which applies for the merger
to be considered under this section shall—
(a) notify the Commission of the merger; and
(b) apply to it for a decision.
(2) Subject to sections 59 and 62, on an application under this

section, the Commission may make a decision as to—
(a) whether the prohibition in section 54 has been infringed;

and
(b) if it has not been infringed, whether that is—
(i) because of the effect of an exclusion;
(ii) because the merger is exempted from the

prohibition under subsection 59(2); or
(iii) because an undertaking has been accepted

pursuant to section 62.
(3) A reference in any provision of this Act to an application or a

notification under section 56 shall include a reference to an
application or a notification under section 55 that the Commission
treats as an application or a notification under section 56 pursuant
to subsection 55(5).
Division 5
Decision by the Commission
Interim measures
57. (1) This section applies if the Commission has commenced

but not completed an investigation under section 83.
(2) If the Commission has reasonable grounds to believe that any

prohibition under this Part has been infringed or is likely to be
infringed and the Commission considers that it is necessary for it to
act under this section as a matter of urgency for the purpose of—
(a) preventing serious and irreparable damage, economic or

otherwise, to a particular person or category of persons;
or
(b) protecting the public interest,
the Commission may give such direction as it considers to be

appropriate and proportionate for that purpose.
(3) A direction given under subsection (2) may include requiring

or causing any person—
(a) to suspend the effect of, and desist from acting in

accordance with, any agreement which is suspected of
infringing any prohibition under this Part;
(b) to desist from any conduct which is suspected of

infringing any prohibition under this Part; or
(c) to do, or refrain from doing, any act, but which shall not
require the payment of money.
(4) The Commission shall, before giving a direction under

subsection (2)—
(a) serve a notice to the person to whom the Commission

proposes to give the direction; and
(b) give that person an opportunity to make written

representations within a period of at least seven days
from the date of the notice.
(5) A notice under subsection (4) shall indicate the nature of the
direction which the Commission proposes to give and its reasons for
giving the direction.
(6) The Commission may at any time withdraw a direction given

under subsection (2).
(7) Without prejudice to subsection (6), any direction given under

subsection (2) shall cease to have effect—
(a) on the date of the decision by the Commission upon

completion of the investigation under section 83; or
(b) twelve months from the date the direction was given,
whichever is earlier.
Finding of non-infringement
58. Where the Commission has made a decision that there is no

infringement of a prohibition under Part VII, the Commission shall,
without delay, give notice of the decision to any person who is
affected by the decision stating the facts on which the Commission
bases the decision and the Commission’s reason for making the
decision.
Finding of an infringement
59. (1) If the Commission determines that there is an

infringement of a prohibition under this Part, the Commission—
(a) shall require that the infringement to be ceased

immediately;
(b) may specify steps which are required to be taken by the

infringing enterprise, which appear to the Commission
to be appropriate for bringing the infringement to an
end;
(c) may impose a financial penalty which shall not exceed

ten percent of the worldwide turnover of the enterprise
over the period during which an infringement occurred;
or
(d) may give any other direction as it deems appropriate.
(2) The Commission shall, within fourteen days of making a

decision under this Part, notify any person affected by the decision
and the person may, within fourteen days of the date of the notice,
apply to the Minister for the applicable commercial activity,
agreement, merger or anticipated merger, as the case may be, to be
exempted from the prohibition on the ground of any public interest
consideration.
(3) The Minister may revoke the exemption granted under

subsection (2) if the Minister has reasonable grounds for suspecting
that the information on which he based his decision was incomplete,
false or misleading in a material particular.
(4) The Commission shall prepare and publish reasons for each
decision it makes under this section.
Leniency regime
60. (1) There shall be a leniency regime, with a reduction of up to

a maximum of one hundred percent of any penalties which would
otherwise have been imposed, which may be available in the cases of
any enterprise which has—
(a) admitted its involvement in an infringement of any

prohibition under subsection 49(2); and
(b) provided information or other form of co-operation to

the Commission which significantly assisted, or is likely
to significantly assist, in the identification or
investigation of any finding of an infringement of any
prohibition by any other enterprises.
(2) A leniency regime may permit different percentages of

reductions to be available to an enterprise depending on—
(a) whether the enterprise was the first person to bring the
suspected infringement to the attention of the
Commission;
(b) the stage in the investigation at which—
(i) an involvement in the infringement was

admitted; or
(ii) any information or other co-operation was

provided; or
(c) any other circumstances which the Commission

considers appropriate to have regard to.
Enforcement of direction or decision
61. (1) The Commission may bring proceedings before the High
Court against any person who fails to comply with a direction given
by the Commission under section 57 or a decision under section 59.
(2) If the High Court finds that the person referred to in

subsection (1) has failed to comply with the direction or decision, the
High Court shall make an order requiring the person to comply with
the direction or decision.
(3) For the purposes of subsection (2), where the High Court
finds that the failure to comply with the decision includes a failure to
pay a penalty within the specified period, the High Court shall, in
addition to ordering that person to pay the penalty, order the person to
pay interest at the normal judgment rate running from the day
following that on which the payment was due.
(4) Any breach of an order of the High Court made pursuant to

this section shall be punishable as a contempt of court.
Power to accept undertaking
62. (1) The Commission may, subject to the conditions that the
Commission may impose, accept from an enterprise an undertaking
to do or refrain from doing anything as the Commission considers
appropriate.
(2) If the Commission accepts an undertaking under subsection

(1), the Commission shall, in relation to an infringement, close the
investigation without making any finding of infringement and shall
not impose a penalty on the enterprise.
(3) Any undertaking accepted by the Commission under this

section shall be a document available for inspection by the public in a
manner determined by the Commission.
(4) The provisions of any undertaking accepted by the

Commission under this section shall be enforceable by the
Commission as though those provisions had been set out in a decision
given to the enterprise providing that undertaking pursuant to section
59.
Division 6
General
Aviation service market review
63. (1) The Commission may, on its own initiative or upon the
request of the Minister, conduct a review into any aviation service
market in order to determine whether any feature or combination of
features of the market prevents, restricts or distorts competition in the
market.
(2) The aviation service market review includes a study into—
(a) the structure of the aviation service market concerned;
(b) the conduct of enterprises in the aviation service market;
(c) the conduct of suppliers and consumers to the enterprises

in the aviation service market; or
(d) any other relevant matters.
(3) Upon conclusion of the aviation service market review, the

Commission shall publish a report of its findings and
recommendations.
(4) The report of the Commission shall be made available to the

public.
Right of private action
64. (1) Any person who suffers loss or damage directly as a result
of an infringement of any prohibition under this Part shall have a
right of action for relief in civil proceedings in a court under this
section against any enterprise which is or which has at the material
time been a party to such infringement.
(2) The action may be brought by any person referred to in

subsection (1) regardless of whether such person dealt directly or
indirectly with the enterprise.
Power to issue guidelines
65. (1) The Commission may issue and publish such guidelines as
may be expedient or necessary for the better carrying out of the
provisions of this Part.
(2) Without prejudice to the generality of subsection (1), the

Commission may issue guidelines on—
(a) the economic and legal analysis to be used in determining

cases under this Part;
(b) the principles to be used in determining any penalty or

remedy imposed under this Part;
(c) the types of anticipated mergers that are applicable for

consideration by the Commission under section 55; and
(d) the procedures to be followed by any party making an

application under section 55 or 56.
(3) The Commission may revoke, vary, revise or amend the

whole or any part of any guidelines issued under this section.
(4) The Commission may impose a financial penalty for any non-
compliance of any guidelines issued under this section―
(a) where such person is an individual, to an amount not

exceeding one million ringgit; or
(b) where such person is a body corporate, to an amount not

exceeding five per cent of the body corporate’s annual
turnover from the preceding financial year.
(5) For the purpose of this section―
“financial year” means the period in respect of which any financial

statement is made up whether that period is a year or not;
“annual turnover” means the aggregate of all sums received in the

course of the business during financial year, as stated or otherwise
shown in the accounts of the business, including grants from any
Federal Government or State Government.
PART VIII
AIR TRAFFIC RIGHT AND SLOT ALLOCATION
Air traffic right
66. (1) The Commission shall be responsible to administer,

allocate and manage air traffic right for both domestic and
international routes.
(2) In carrying out its functions under subsection (1), the

Commission may—
(a) evaluate the performance of the airlines in providing air

transport services and, in the event of a breach of any
condition attached to the grant of air traffic right to an
airline, the Commission may—
(i) impose financial penalties on the airline up to one

million ringgit;
(ii) suspend the grant of air traffic right to the airline; or
(iii) revoke the grant of air traffic right to the airline;
(b) consider the effect on consumers, the civil aviation

industry and the public interest by the proposed air traffic
right allocation;
(c) consider the benefits of allocating air traffic right on the

same route to two or more applicants;
(d) consider the competition between the airlines in providing

air transport services; and
(e) consider any other factors as may be prescribed by the

Commission.
Slot allocation
67. (1) The Commission shall have the powers to do any or all of
the following:
(a) supervise and monitor the slot allocation by any

person;
(b) issue directions to such person relating to the slot

allocation;
(c) prescribe regulations setting out the principles and

procedures for slot allocation;
(d) determine any dispute relating to slot allocation.
(2) Any aircraft operating at an aerodrome shall not

intentionally—
(a) operate air services at times significantly different

from the allocated slots; or
(b) use slots in a significantly different way from that

indicated at the time of allocation, where such use
causes prejudice to aerodrome or air traffic operations.
(3) For the purposes of this section, “slot allocation” means the
allocation of time slots for the purpose of granting aircraft access to
aerodrome facilities for landing and taking-off at specific dates and
times.
PART IX
PUBLIC SERVICE OBLIGATIONS
Public service obligations
68. (1) The Commission shall advise the Minister with regard to the
policy for public service obligations.
(2) In performing its function of administering and managing

public service obligations under subsection (1), the Commission
shall—
(a) identify the criteria to be applied for the designation of

public service obligation routes;
(b) evaluate the amounts to be expended from the Public

Service Fund in order to make a public service obligation
route commercially viable to an airline;
(c) administer programmes on public service obligations by

airlines;
(d) supervise, monitor and manage the performance by

airlines of public service obligations;
(e) make payment to the airlines for their performance of

public service obligations from the Public Service Fund
on such terms as the Commission may prescribe; and
(f) require the relevant airlines to comply with all applicable

agreements and laws in the carrying out of public service
obligations.
PART X
CONSUMER PROTECTION
Consumer code
69. (1) The Commission may prescribe a consumer code to be

published in the Gazette which may include requirements on
minimum policies and practices for–
(a) reasonably meeting consumer requirements;
(b) the handling of consumer complaints and compensation

of consumers in case of a breach of the consumer code;
(c) raising consumer awareness including the provision of

information to consumers regarding aviation services,
charges and minimum service levels and standards of
performance;
(d) the protection of consumer information;
(da) the determination of fees or charges imposed on

consumers by providers of aviation services; and
(e) any other matters of concern to consumers.
(2) In the preparation and any subsequent amendment of the

consumer code under subsection (1), the Commission shall consult
the stakeholders including airlines, aerodrome operators and other

relevant bodies and organizations in the civil aviation industry.
(3) A person who provides any aviation service shall comply

with the consumer code.
(4) The Commission may impose a financial penalty for any

non-compliance an amount not exceeding two hundred thousand
ringgit, and in the case of a second or subsequent non-compliance, an
amount ten times of the financial penalty which was imposed for the
first non-compliance.
Consumer complaint
70. A complaint pertaining to any aviation service may be lodged

by any consumer to the Commission.
Determination of consumer complaints
71. (1) Upon receipt of a complaint under section 70, the

Commission may appoint any one of its members or establish a
committee to hear and determine the complaint.
(2) In determining the complaint, the member or the committee

may require for costs to be paid to the party in whose favour the
decision is made.
(3) Any person who is found to have made a vexatious or

frivolous complaint shall be subject to a financial penalty of two
hundred ringgit.
Recovery of unpaid financial penalty or costs
72. Any unpaid financial penalty under section 69 or costs

imposed under section 71 may be sued for and recovered as a civil
debt due to the Commission and in addition, the High Court may
order for a payment of a penalty for late payment up to an amount

equivalent to twice the amount of the financial penalty or costs
unpaid and costs of recovering the amount including any costs of
legal proceedings.
Enforcement of decisions on consumer complaint
73. (1) A decision given by the Commission under this Part, upon
application to the High Court to be registered as a judgment of the
High Court, shall be enforced as such.
(2) In the case where a decision of the Commission is in favour of

the consumer and the person against whom the decision was made
fails to comply with the decision within thirty days from the date of
decision, the Commission may, if the Commission thinks appropriate,
bring the matter to the High Court on behalf of the consumer for an
order requiring such person to comply with the decision.
PART XI
DISPUTE RESOLUTION
Disputes
74. (1) Any dispute between two or more providers of aviation

services regarding any matter under this Act shall first be resolved
through mediation.
(2) Notwithstanding any provision in the Mediation Act 2012 [Act

749] to the contrary, the parties shall resolve the dispute through
mediation within a period of thirty days or such longer period as the
Commission may approve which shall not exceed sixty days.
Commission to decide on disputes
75. If the parties to the dispute fail to resolve the dispute through
mediation within the time specified under subsection 74(2), the
Commission shall commence to decide on the dispute.
Decisions to be in writing
76. (1) The terms and conditions of any resolution of a dispute by

the Commission shall be in writing and shall contain reasons for such
decision.
(2) The Commission shall provide the parties to the dispute with
a copy of its decision as soon as practicable.
Registration of decisions
77. (1) The Commission shall maintain a register of all decisions

under this Part.
(2) The register shall contain—
(a) the names of the parties to the dispute;
(b) a general description of the matter pertaining to the

decision and the decision; and
(c) the date of the decision.
Enforcement of decisions
78. (1) A decision given by the Commission, upon application to

the High Court to be registered as a judgment of the High Court, shall
be enforced as such.
(2) For the purposes of subsection (1), if the High Court finds that
a person referred to in the decision has failed to comply with the
decision, the High Court shall make an order requiring such person to
comply with the decision.
PART XII
ENFORCEMENT AND INVESTIGATION
Authorized officer
79. (1) The Commission may in writing authorize any officer of

the Commission to exercise the powers of enforcement under this
Act.
(2) In exercising any of the powers of enforcement under this

Act, an authorized officer shall on demand produce to the person
against whom he is acting the authority issued to him by the
Commission.
Powers of enforcement, inspection and investigation
80. The authorized officer shall have all the powers of a police
officer of whatever rank as provided for under the Criminal
Procedure Code [Act 593], except the power to arrest without
warrant, in relation to enforcement, inspection and investigation, and
such powers shall be in addition to the powers provided for under this
Act and not in derogation thereof.
Power to require information
81. (1) The authorized officer may make an order under subsection
(2) against any person if he has reasonable grounds to believe that
that person—
(a) has any information or any document that is relevant to

the performance of functions and powers under this Act;
or
(b) is capable of giving any evidence which the authorized

officer has reasonable grounds to believe that the
evidence is relevant to the performance of functions and
powers under this Act.
(2) The order under subsection (1) may require the person—
(a) to give the authorized officer any such information;
(b) to produce to the Commission any such documents,

whether in a physical form or in electronic media;
(c) to make copies of any such documents and to produce

those copies to the Commission;
(d) if the person is an individual, to appear, at a private

hearing, before the Commission at a time and place
specified in the notice to give any evidence, either orally
or in writing, and produce any such documents, whether
in a physical form or in electronic media;
(e) if the person is a body corporate or a public body, to

cause a competent officer of the body corporate or the
public body to appear, at a private hearing, before the
Commission at a time and place specified in the notice
to give any such evidence, either orally or in writing,
and produce any documents, whether in a physical form
or in electronic media; or
(f) if the person is a partnership, to cause an individual who

is a partner in the partnership or an employee of the
partnership to appear, at a private hearing, before the
Commission at a time and place specified in the notice
to give any evidence, either orally or in writing, and
produce any documents, whether in a physical form or

in electronic media.
(3) The person so ordered under subsection (1) shall—
(a) provide the required information or documents within

such time as specified in the order or such extended time
as the Commission may grant; and
(b) ensure that the information or documents provided are

true, accurate and complete and shall provide a
representation to that effect, including a representation
that he is not aware of any other information or
document which would make the information or
document provided untrue or misleading.
(4) A person who fails to comply with an order of the

Commission under this section 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 three years or to
both.
Power to conduct inspection
82. (1) For the purpose of ascertaining compliance with this Act
or breach of code of conduct under section 15 or consumer code
under section 69, the Commission shall have access to any place or
building and may inspect and make copies of or take extracts from
any book, minute book, register or other documents required to be
kept by the Commission or necessary for the purpose of ascertaining
compliance with this Act.
(2) For the purposes of this section, the Commission may by

notice in writing require any person to produce to him such books,
minute books, registers or other documents as are in the custody or
under the control of that person.
(3) Any person who—

(a) fails to produce any books, minute books, registers or

other documents as required by the Commission under
this section; or
(b) obstructs, intimidates, distracts, harasses or hinders the

Commission while exercising any of the powers under
this section,

term not exceeding three years or to both.
Power to investigate
83. The authorized officer shall have the power to conduct an

investigation where there is reason to suspect that—
(a) an offence, breach or infringement of any prohibition has

been or is being committed;
(b) there was an attempt to commit an offence, breach or

infringement of any prohibition; or
(c) there was a conspiracy to commit an offence, breach or

infringement of any prohibition,
in relation to this Act or breach of code of conduct under section 15

or consumer code under section 69.
Giving false or misleading information, evidence or document
84. A person who fails to disclose or omits to give any relevant

information or evidence or document, or provides any information,
evidence or document that he knows or has reason to believe is false
or misleading, in response to a direction issued by the Commission,

term not exceeding three years or to both.
Compliance order
85. (1) Where the authorized officer is satisfied that a person has
committed or is likely to commit an offence or has infringed or is
likely to infringe a prohibition against this Act, he may make a
compliance order under this section.
(2) Any person against whom a compliance order is made shall

comply with the order.
(3) A compliance order may require a person to refrain from

conduct which is in contravention of this Act or to take actions
required to be taken in order to comply with this Act.
(4) A compliance order shall be made in writing specifying the

grounds for its making.
Tipping off
86. (1) Any person who—
(a) knows or has reasonable grounds to suspect that an

authorized officer is acting, or is proposing to act, in
connection with an investigation which is being, or is
about to be, conducted under or for the purposes of this
Act and discloses to any other person information or any
other matter which is likely to prejudice that
investigation or proposed investigation; or
(b) knows or has reasonable grounds to suspect that a

disclosure has been made to an authorized officer under
this Act and discloses to any other person information or
any other matter which is likely to prejudice any
investigation which might be conducted following the

disclosure,

exceeding three million ringgit or to imprisonment for a term not
exceeding five years or to both.
(2) Nothing in subsection (1) makes it an offence for an advocate

and solicitor or his employee to disclose any information or other
matter—
(a) to his client or the client’s representative in connection

with the giving of advice to the client in the course and
for the purpose of the professional employment of the
advocate and solicitor; or
(b) to any person in contemplation of, or in connection with

and for the purpose of, any legal proceedings.
(3) Subsection (2) does not apply in relation to any information or

other matter which is disclosed with a view to furthering any illegal
purpose.
(4) In proceedings against a person for an offence under this

section, it is a defence to prove that—
(a) he did not know or suspect that the disclosure made

under paragraph (1)(b) was likely to prejudice the
investigation; or
(b) he had lawful authority or reasonable excuse for making

the disclosure.
Threat or reprisal prohibited
87. (1) No person shall—

(a) coerce or attempt to coerce any person to refrain from

doing any act referred to in subsection (3); or
(b) subject any person to any commercial or other

disadvantage as a reprisal against the person for doing
any act referred to in subsection (3).
(2) For the purposes of and without prejudice to the generality of

paragraph (1)(b), the commercial or other disadvantage may include a
threat of late payment of amounts properly due to the person, the
unreasonable bringing or conduct of litigation against the person, the
cancellation of orders with the person, or the diversion of business
from, or refusal to trade with, the person.
(3) The acts referred to in subsection (1) are as follows:
(a) making a complaint to the Commission; and
(b) co-operating with, or offering or agreeing to co-operate

with, the Commission in connection with any
investigation by the Commission.
(4) 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 five years or to
both; and for a second or subsequent offence, to a fine not exceeding
two million ringgit or to imprisonment for a term not exceeding five
years or to both.
PART XIII
GENERAL
Appeals to the High Court
88. (1) Any person or body aggrieved by any decision of the

Commission under Part VII, may, at any time within the period of
three months beginning from the date on which the decision was
communicated to him, appeal to the High Court.
(2) Any such appeal shall be made in accordance with the

provisions of any written law for the time being in force relating to
civil procedure; and the High Court shall make such order as it
considers just.
(3) In this section, “decision” includes any act, omission, refusal,

direction or order.
Civil aviation industry audit
89. (1) The Commission may, at any time, carry out or appoint an
auditor to carry out an audit on any aspect of the civil aviation
industry including airport operations and related services.
(2) The Commission shall, as soon as possible, send a copy of the

auditors’ report to the Minister and the Minister shall cause the same
to be laid before both Houses of Parliament.
Returns, reports, accounts and information
90. (1) The Commission shall furnish to the Minister, and any
public authority as may be specified by the Minister, such returns,
reports, accounts and information with respect to its activities and
finances as the Minister may, from time to time, require or direct.
(2) The Commission shall, as soon as practicable after the end of

each financial year, cause to be made and transmitted to the Minister,
and, if so directed by the Minister, to any other public authority a
report dealing with the activities of the Commission during the
preceding financial year.
(3) The returns, reports, accounts and information shall be in such

form and shall contain such information relating to the proceedings
and policy of the Commission and any other matter as the Minister
may, from time to time, specify.
Conduct of prosecution
91. No prosecution for any offence under this Act shall be

instituted except with the consent in writing of the Public Prosecutor.
Offences by bodies corporate
92. (1) Where a person convicted in respect of any offence

under this Act is a body corporate, it shall only be punished with the
fine provided for such offence.
(2) Where an offence against this Act or any regulations made

thereunder has been committed by a body corporate, any person who
at the time of the commission of the offence was a director, a chief
executive officer, an officer, an employee, a representative or the
secretary of the body corporate or was purporting to act in such
capacity or was in any manner or to any extent responsible for the
management of any of the affairs of the body corporate or was
assisting in such management—
(a) may be charged severally or jointly in the same

proceedings with the body corporate; and
(b) shall be deemed to have committed that offence unless

he proves that the offence was committed without his
consent or connivance and that he exercised all such due
diligence to prevent the commission of the offence as he
ought to have exercised, having regard to the nature of
his functions in that capacity and to all the
circumstances.
(3) Where a person who is an employee of a body corporate

contravenes any provision of this Act, that body corporate shall be
deemed to have contravened such provision.
(4) For the purposes of this section, “officer”, in relation to a

director of a corporation, includes—
(a) a person occupying or acting in the position of a director

of the corporation, by whatever name called, and
whether or not validly appointed to occupy or duly
authorized to act in the position;
(b) a person in accordance with whose directions or

instructions the directors of the corporation are
accustomed to act; and
(c) if the corporation is incorporated outside Malaysia—
(i) a member of the corporation’s board;
(ii) a person occupying or acting in the position of

director of the corporation’s board, by whatever
name called, and whether or not validly appointed
to occupy or duly authorized to act in the
position; and
(iii) a person in accordance with whose directions or

instructions the members of the corporation’s
board are accustomed to act.
Public servants and public officers
93. All members of the Commission and any of its committees,

and employees or agents of the Commission, while discharging their
duties under this Act as such members, employees or agents, shall be
deemed to be public servants within the meaning of the Penal Code
[Act 574].
Obligation of secrecy
94. (1) Except for any of the purposes of this Act or for the
purposes of any civil or criminal proceedings under any written law
or where otherwise authorized by the Commission–
(a) no member of the Commission or any of its committees

or any employee or agent of the Commission or any
person attending any meeting of the Commission or any
of its committees, whether during or after his tenure of
office or employment, shall disclose any information
obtained by him in the course of his duties and which is
not published in pursuance of this Act or the Civil
Aviation Act 1969; and
(b) no other person who has by any means access to any

information or document relating to the affairs of the
Commission shall disclose such information or
document.
(2) Any person who contravenes subsection (1) commits an

million ringgit or to imprisonment for a term not exceeding five years
or to both.
Representation in civil proceedings
95. Notwithstanding the provisions of any other written law—
(a) in any civil proceedings by or against the Commission;
(b) in any civil proceedings against any employee in relation

to the performance of his functions under this Act; or
(c) in any other civil proceedings in which the Commission is

required or permitted by the court to be represented, or to
be heard, or is otherwise entitled to be represented or to be
heard,
any person authorized by the Commission for that purpose may, on

behalf of the Commission or the employee, institute such proceedings
or appear in such proceedings and may make all appearances and
applications and do all acts in respect of such proceedings on behalf
of the Commission or employee.
Protection against suits and legal proceedings
96. No action, suit, prosecution or other proceedings shall lie, or

be brought, instituted or maintained in any court against—
(a) the Commission; or
(b) any member of the Commission or of the committee, any

employee or agent of the Commission,
in respect of any act, neglect or default done or committed by it or

him in good faith or any omission omitted by it or him in good faith,
in such capacity.
Public Authorities Protection Act 1948
97. The Public Authorities Protection Act 1948 [Act 198] shall
apply to any action, suit, prosecution or proceedings against the
Commission or a member of the Commission, a member of a
committee, and an employee or agent of the Commission in respect
of any act, neglect or default done or committed by him in good faith
or any omission omitted by him in good faith in such capacity.
Power to make regulations
98. (1) The Commission may make regulations as may be

necessary or expedient for—
(a) giving full effect to the provisions of this Act;
(b) carrying out or achieving the objects and purposes of

this Act; or
(c) the further, better or convenient implementation of

the provisions of this Act.
(2) Without prejudice to the generality of subsection (1),

regulations may be made for—
(a) prescribing all matters relating to the issuance of

licences and permits under this Act, including the
eligibility of persons applying for licences and
permits, licence and permit fees, the duration of the
licences and permits, the forms of licences and
permits, the standard conditions of the licences and
permits, application fees, annual fees, renewal fees
and other processing charges;
(b) prescribing matters pertaining to air traffic right

allocation;
(c) prescribing matters pertaining to slot allocation at

the aerodromes;
(d) prescribing the code of conduct for the members of

the Commission and the members of a committee;
(e) prescribing the conditions of service, conduct and

discipline of the employees of the Commission;
(f) prescribing matters pertaining to the public service

obligation;
(g) prescribing the consumer code and matters

pertaining to consumer protection;
(h) prescribing matters pertaining to dispute resolution;
(i) prescribing matters pertaining to competition in the

civil aviation industry;
(j) prescribing matters pertaining to ground handling

services;
(k) prescribing the fees and charges payable to the
Commission under this Act and the manner for
collecting and disbursing such fees, which includes
to exempt fully or partially the payment of any fees
and charges payable to the Commission under this
Act by any aircraft, flight or person or classes of
aircrafts, flights, or persons on such terms and
conditions as the Commission thinks fit;
(l) providing for the regulation of all or any of the

activities of the Commission and generally the
performance of the functions, the exercise of the
powers and the discharge of the duties of the
Commission under this Act; and
(m) providing for such other matters as are contemplated

by, or necessary for giving full effect to, the
provisions of this Act and for their due
administration.
(3) Regulations made under this section may prescribe any act
in contravention of the regulations to be an offence and may prescribe
penalties of a fine not exceeding five hundred thousand ringgit or
imprisonment for a term not exceeding five years or both for such
offence.
Power to issue guidelines, circulars, directives, etc.
98A. (1) For the purposes of this Act or the subsidiary legislation
made under this Act, the Commission may issue guideline, circular,
directive, practice note or notice as it considers appropriate to
regulate economic matters relating to the civil aviation industry and

may impose any condition or restriction as the Commission thinks fit.
(2) Every guideline, circular, directive, practice note or notice

issued under this Act or the subsidirary legislation made under this
Act shall be published by the Commission in such manner as to
ensure that the guideline, circular, directive, practice note or notice is
brought to the attention of the person who has to comply with such
guideline, circular, directive, practice note or notice.
(3) The Commission may impose a financial penalty for any

non-compliance of any guideline, circular, directive, practice note or
notice issued under this section―
(a) where such person is an individual, to an amount

not exceeding one million ringgit; or
(b) where such person is a body corporate, to an

amount not exceeding five per cent of the body
corporate’s annual turnover from the preceding
financial year.
(4) The Commission may revoke, vary, revise or amend the

whole or any part of any guideline, circular, directive, practice note
or notice issued under this section.
(5) For the purpose of this section―
“financial year” means the period in respect of which any

financial statement is made up whether that period is a year or not;
“annual turnover” means the aggregate of all sums received in the

course of the business during financial year, as stated or otherwise
shown in the accounts of the business, including grants from any
Federal Government or State Government.
Power to amend Schedules
99. The Minister may, upon the recommendation of the

Commission, amend any Schedule by order published in the Gazette.
PART XIV
SAVINGS AND TRANSITIONAL
Savings for licences and permits
100. (1) Every person who, before the appointed date, held a valid
licence or permit issued to him under the Civil Aviation Act 1969 or
the Civil Aviation Regulations 1996, or any air traffic right allocated
to him for domestic or international service by the Ministry of
Transport, shall continue to be authorized under this Act until the
expiry date of the licence, permit or right and subject to the terms and
conditions attached to the licence, permit or right.
(2) Nothing in this section shall be construed to extend the term

or duration of a licence, permit or right specified in subsection (1)
beyond the date of its expiry.
(3) The Commission may alter the terms and conditions attached
to the licence, permit or right authorized under subsection (1) for the
purpose of bringing them into conformity with the policy of the
Commission regarding the imposition of conditions on licensing and
permit under this Act.
(4) The provisions of this Act relating to the cancellation of

licences, permits or right shall apply to all persons deemed under
subsection (1) to be authorized under this Act.
Savings for Rural Air Services Agreement
101. The Rural Air Services Agreement entered between the

Government and MASwings Sdn. Bhd. subsisting before the
appointed date shall have full force and effect and shall on the
appointed date be monitored by the Commission.
Continuance of pending applications, etc.
102. (1) All applications, approvals or decisions, on appeal or

otherwise, pertaining to matters under this Act, pending before the
Minister or the Director General of Civil Aviation under the Civil
Aviation Act 1969 or Civil Aviation Regulations 1996, shall on the
appointed date be dealt with by the Commission under this Act.
(2) All instruments, certificates or documents pertaining to

matters under this Act lodged with the Minister or the Director
General of Civil Aviation under the Civil Aviation Act 1969 or Civil
Aviation Regulations 1996 before the appointed date shall on the
appointed date be lodged with the Commission.
Existing ground handling services
103. (1) A person shall only be authorized to carry out the services
and activities stipulated in any agreement and supplementary
agreement in respect of ground handling services for a period of one
year from the appointed date or such other periods as may be
extended by the Commission if the person lodges a certified copy of
the agreement and supplementary agreement with the Commission
within six months from the appointed date or such other period as
may be extended by the Commission.
(2) The authorization granted to the person authorized under

subsection (1) shall lapse if they fail to register with the Commission
within six months or any extended period mentioned in subsection (1)
after the appointed date.
Existing agreements
104. (1) A person shall be authorized to carry out the services and
activities stipulated in an agreement in respect of public service
obligations and any operating or concession agreement until the
expiry date of the agreement and subject to the terms and conditions
attached to the agreements.
(2) Nothing in this section shall be construed to extend the term

or duration of an agreement specified in subsection (1) beyond the
date of its expiry.
Existing agreements
104. All acts and things done on behalf of the Commission in

preparation for or in anticipation of the enactment of this Act and any
expenditure incurred in relation thereto shall be deemed to have been
authorized under this Act, provided that the acts and things done are
consistent with the general intention and purposes of this Act, and all
rights and obligations acquired or incurred as a result of the doing of
those acts or things including any expenditure incurred in relation
thereto shall upon the coming into operation of this Act be deemed to
be the rights and obligations of the Commission.
FIRST SCHEDULE
[Section 14]
MEETINGS
The Commission
1. (1) The Commission is to hold as many meetings as are necessary for the
efficient performance of its functions and such meetings are to be held at such
times and places as the Executive Chairman may determine.
(2) The Executive Chairman shall ensure that there shall be not less than three
meetings of the Commission in a year.
(3) The Executive Chairman shall preside at a meeting of the Commission.

(4) A quorum may be formed at any meeting—
(a) by the Executive Chairman and at least four other members of the
Commission one of whom shall be a member specified in paragraph
5(1)(b); or
(b) by the member of the Commission appointed under section 6 to

temporarily act as the Executive Chairman and at least four other
members of the Commission one of whom shall be a member
specified in paragraph 5(1)(b).
(5) Every member present at a meeting of the Commission shall be entitled to

one vote.
(6) If on any question to be determined by the Commission there is an equality

of votes, the Executive Chairman shall have a casting vote in addition to his
deliberative vote.
(7) Any member of the Commission may request for the holding of or
participation in any meeting by means of instantaneous telecommunication device
such as telephone, video conferencing or other electronic means of audio or audio-
visual communications. The contemporaneous linking together by such
instantaneous telecommunication device of a number of members sufficient to
constitute a quorum, despite the fact that the members are not present together in
one place at the time of the conference, shall constitute a duly convened and
constituted meeting, provided that—
(a) the Executive Chairman shall have approved the holding of or

participation in such meeting by means of instantaneous
telecommunication device;
(b) all the members of the Commission shall have received notice of such
meeting and the means by which the meeting will be conducted;
(c) each of the members of the Commission taking part in the meeting by the
instantaneous telecommunication device must be able to hear each of the
other members taking part at the commencement and for the duration of
the meeting; and
(d) at the commencement of the meeting and prior to the voting on any
resolution, each member of the Commission must acknowledge his
presence for the purpose of the meeting to all of the other members taking
part.
Invitation to others to attend meetings
2. (1) The Commission may invite any other person to attend any meeting or
discussion of the Commission for the purpose of advising it on any matter under
discussion but any person so attending shall have no right to vote at the meeting or
discussion.
(2) Any person invited to attend any meeting or discussion of the Commission
under subparagraph (1) may be paid such allowances and other expenses as the
Commission may determine.
Resolutions without meetings
3. (1) A resolution is taken to have been passed at a meeting if—
(a) all members of the Commission have been informed of the

proposed resolution, or reasonable efforts have been made to inform
all members of the Commission of the proposed resolution; and
(b) without meeting, all of the members of the Commission indicate

agreement with the resolution in accordance with the method
determined by the Commission under subparagraph (2).
(2) Subparagraph (1) applies only if the Commission—
(a) decides that the subparagraph applies; and
(b) decides the method by which members of the Commission are to

indicate agreement with the resolutions.
Minutes
4. (1) The Commission shall cause minutes of all their meetings to be

maintained and kept in a proper form.
(2) Any minutes made of meetings of the Commission shall, if duly signed,
shall be admissible in evidence in all legal proceedings without further proof.
(3) Every meeting of the Commission in respect of the proceedings of which

minutes have been made in accordance with subparagraphs (1) and (2) shall be
deemed to have been duly convened and held and all members thereat to have been
duly qualified to act.
Procedure
5. Subject to this Act, the Commission may regulate its own procedure.
Validity of acts and proceedings
6. No act done or proceeding taken under this Act shall be questioned on the
ground of―
(a) any vacancy in the membership of, or any defect in the constitution
of, the Commission;
(b) any omission, defect or irregularity not affecting the merits of the
case.
Member of Commission to devote time to business of the Commission
7. Every member of the Commission shall devote such time to the business of
the Commission as may be necessary to discharge his duties effectively.
The Committee
Meetings
1. (1) The committee is to hold as many meetings as are necessary for the
efficient performance of its functions and such meetings are to be held at such
times and places as the chairman of the committee may determine.
(2) The chairman of the committee shall preside at a meeting of the committee.
Invitation to others to attend meetings
2. (1) The committee may invite any other person to attend any meeting or
discussion for the purpose of advising it on any matter under discussion.
(2) Any person invited to attend any meeting or discussion under

subparagraph (1) may be paid such allowances and other expenses as the
Commission may determine.
Minutes
3. (1) Every committee shall cause minutes of all their meetings to be

maintained and kept in a proper form.
(2) A committee shall cause copies of the minutes of all its meetings to be
signed and submitted to the Commission as soon as practicable.
(3) Any minutes made of meetings of the committee shall, if duly signed, be
admissible in evidence in all legal proceedings without further proof.
(4) Every meeting of the committee in respect of the proceedings of which

minutes have been made in accordance with subparagraphs (1) and (2) shall be
deemed to have been duly convened and held and all members thereat to have been
duly qualified to act.
Procedure
4. Subject to this Act, the committee may regulate its own procedure.
SECOND SCHEDULE
[Section 37]
LIST OF GROUND HANDLING SERVICES
1. Ground administration and supervision, comprising―
(a) representation and liaison services with local authorities or any other
entity, disbursements on behalf of the airport user and provision of
office space for its representatives;
(b) load control, messaging and telecommunications;
(c) handling, storage and administration of unit load devices;
(d) any other supervision services before, during or after the flight; and
(e) any other administrative service requested by the airport user.
2. Passenger handling comprising any kind of assistance to arriving, departing,

transfer or transit passengers, including checking tickets and travel documents,
registering baggage and carrying it to the sorting area.
3. Freight and mail handling comprising―

(a) for freight: handling of related documents, customs procedures and the
implementation of any security procedure agreed between the parties
or required in the circumstances;
(b) for mail: handling of related documents and implementation of any

security procedure between the parties or required by the
circumstances.
4. Aircraft services, comprising―
(a) the external and internal cleaning of the aircraft, and the toilet and
water services;
(b) the cooling and heating of the cabin, the removal of snow and ice, the
de-icing of the aircraft;
(c) the rearrangement of the cabin with suitable cabin equipment, the
storage of the equipment.
5. Aircraft maintenance, comprising―

(a) routine services perfomed before flight;
(b) non-routine services requested by the airport user;
(c) the provision and administration of spare parts and suitable equipment;
(d) the request for or reservation of a suitable parking and/or hangar space.
6. Flight operations and crew administration, comprising―
(a) preparation of the flight at the departure airport or at any other point;
(b) in flight assistance, including re-dispatching if needed;
(c) post-flight activities;
(d) crew administration.
7. Surface transport comprising―
(a) the organization and execution of crew, passenger, baggage, freight

and mail transport between different terminals of the same airport, but
excluding the same transport between the aircraft and any other point
within the perimeter of the same airport;
(b) any special transport requested by the airport user.

8. Catering servuces comprising―
(a) liason with suppliers and administrative management;
(b) storage of food and beverages and of the equipment needed for the
preparation of food and beverages;
(c) cleaning of the equipment;
(d) preparation and delivery of equipment as well as of bar and food supplies.
9. Baggage handling, comprising handlimg baggage in the sorting area sorting it,
preparing it for departure, loading it onto and unloading it from the devices
designed to move it from the aircraft to the sorting area and vice versa, as well as
transporting baggage from the sorting area to the reclaim area.
10. Freight and mail handling as regards the physical handling of freight and
mail whether incoming, outgoing or being transferred, between the air terminal and
the aircraft.
11. Ramp handling comprising―

(a) marshalling the aircraft on the ground at arrival and departure;
(b) assistance to aircraft parking and provision of suitable devices;
(c) communication between the aircraft and the air-side supplier of

services;
(d) the loading and unloading of the aircraft, including the provision and
operation of suitable means, as well as the transport of crew and
passengers between the aircraft and the terminal, and baggage transport
between the aircraft and the terminal;
(e) the provision and operation of appropriate units for engine starting;
(f) the moving of the aircraft at arrival and departure, as well as the
provision and operation of suitable devices;
(g) the transport, loading on to and unloading from the aircraft of food and
beverages.
12. Fuel and oil handling, comprising―
(a) the organization and execution of fueling and defueling operations,

including the storage of fuel and the control of the quality and quantity
of fuel deliveries;
(b) the replenishing of oil and other fluids.
13. Any other services as may be determined by the Commission from time to
time.
THIRD SCHEDULE
[Section 48]
EXCLUDED COMMERCIAL ACTIVITIES, AGREEMENTS AND MERGERS
1. The administration and provision of public service obligations and the

agreements entered into in respect of the public service obligations.
2. Existing agreements entered into with the Government as amended from

time to time.
3. An agreement or conduct to the extent to which it is engaged in an order to

comply with a legislative requirement.
4. Collective bargaining activities or collective agreements in respect of

employment terms and conditions and which are negotiated or concluded between
parties which include both employers and employees or organizations established
to represent the interests of employers or employees.
5. An enterprise entrusted with the operation of services of general economic

interest or having the character of a revenue-producing monopoly in so far as the
prohibition under Division 2 of Part VII would obstruct the performance, in law or
in fact, the particular tasks assigned to that enterprise.
98
LAWS OF MALAYSIA
Act 771
LIST OF AMENDMENTS
Amending law Short title In force from
Act A1559 Malaysian Aviation Commission 09-02-2018

(Amendment) Act 2018
_____________
99
LAWS OF MALAYSIA
Act 771
LIST OF SECTIONS AMENDED
Section Amending authority In force from
2 Act A1559 09-02-2018
18 Act A1559 09-02-2018
36 Act A1559 09-02-2018
65 Act A1559 09-02-2018
66 Act A1559 09-02-2018
69 Act A1559 09-02-2018
98 Act A1559 09-02-2018
98A Act A1559 09-02-2018

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LAWS OF MALAYSIA

ONLINE VERSION OF UPDATED

MALAYSIAN AVIATION COMMISSION ACT 2015

Date of Royal Assent … … … … 25 August 2015

Date of publication in the Gazette … … 27 August 2015

Latest amendment made by

MALAYSIAN AVIATION COMMISSION ACT 2015

1. Short title and commencement

3. Establishment of the Commission

16. Disciplinary Panel and disciplinary proceedings

FUNCTIONS AND POWERS OF THE COMMISSION AND THE EXECUTIVE

17. Functions of the Commission

EMPLOYEES OF THE COMMISSION

23. Appointment of employees of the Commission

25. Aviation Commission Fund

34. Accounts and reports

LICENSING AND CHARGES

35. Air service licence

49. Prohibited agreement

52. Block exemption

63. Aviation service market review

AIR TRAFFIC RIGHT AND SLOT ALLOCATION

66. Air traffic right

PUBLIC SERVICE OBLIGATIONS

68. Public service obligations

69. Consumer code

ENFORCEMENT AND INVESTIGATION

79. Authorized officer

80. Powers of enforcement, inspection and investigation

88. Appeals to the High Court

SAVINGS AND TRANSITIONAL

100. Savings for licences and permits

102. Continuance of pending applications, etc.

MALAYSIAN AVIATION COMMISSION ACT 2015

An Act to establish the Malaysian Aviation Commission to regulate

[1 March 2016, P.U. (B) 88/2016]

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

1. (1) This Act may be cited as the Malaysian Aviation

(2) This Act comes into operation on a date to be appointed by

2. (1) In this Act, unless the context otherwise requires—

“aerodrome” means any area of land or water, including any

“air traffic right” means―

(a) in relation to domestic routes, the right of an airline

(b) in relation to international routes, the right of an airline

“committee” means any committee established by the Commission

“Director General of Civil Aviation” means the Director General of

“Fund” means the Aviation Commission Fund established under

“Public Service Fund” means the Public Service Fund established

“airport” means the aggregate of the lands comprised within an

the purposes of or in connection with the operation of such

“Minister” means the Minister charged with the responsibility for

“public service obligation” means the provision of service for the

(a) where one or more aerodromes serve a region within

(b) serving a route which is considered to be vital for the

“licensee” means a person licensed under this Act;

“permit holder” means a person holding a permit under this Act;

“Executive Chairman” means the Executive Chairman of the

“consumer” means a person who acquires or uses any aviation