Winding up of aviation firm puts aircraft owners in a dilemma
PETALING JAYA : Owners of aircraft maintained by Systematic Aviation Services Sdn Bhd (SAS), which has now been wound up by the High Court, are in a dilemma as they may not be able to use them for at least a year.
A source said with SAS's licences as an Aircraft Maintenance Organisation (AMO) and Continuing Airworthiness Management Organisation (CAMO) revoked, the owners must wait for approval from the Civil Aviation Authority of Malaysia (CAAM) to transfer their aircraft to another AMO.
He told FMT that the procedure may take too long as aviation regulations pertaining to 'freeing' the aircraft from SAS are tight, adding that the delay may take longer if this was a new experience for the national air regulator.
'The process normally may take about six months to a year. But it could be even longer if the aircraft's maintenance records are not up to date,' he said, adding that there could be more than five aircraft facing this problem.
In the meantime, the source said the owners have to carry out some form of maintenance every two weeks to make sure the aircraft are serviceable and their parts function well.
'The owners have to spend a few thousand ringgit each time they do this. They have to hire a pilot and aircraft engineers and pay for the aviation fuel whilst not being able to use the aircraft.
'A new organisation cannot simply take over the maintenance due to strict formalities to be followed,' the source said.
The source said CAAM should engage aircraft owners immediately to resolve the impasse.
'The aviation regulator has the power to come up with fresh authorisations and exceptions to allow the owners to start operating their aircraft again,' he added.
In March, the Shah Alam High Court allowed a winding-up petition against the charter airline company by an Australian creditor Asia Pacific Aerospace Pty Ltd.
Judicial commissioner Raja Rozela Raja Toran ordered SAS to be wound up in accordance with Section 465 (1)(e) and (h) of the Companies Act 2016.
The section allows for a company's winding up if it is unable to settle its debt or if the court deems it just and equitable to do so.
It is understood that the winding up affairs of the company are presently handled by the Selangor insolvency department.
Meanwhile, a spokesperson for workers who have lost their jobs hopes the liquidation process will be sped up so that they receive all the monies owed to them as they are struggling to make ends meet.
'Many have had their cars repossessed while a few are also facing the prospects of their houses being auctioned after defaulting on their monthly instalments.
'The non-settlement of EPF deductions by the company amounts to at least RM10 million. Can you imagine the compounded dividends we would have lost?' he said.
FMT has reached out to CAAM for comment.
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