The Malaysian Aviation Commission (MAVCOM) has expressed concerns that the expansion plans of local airlines could be curtailed by the recent FAA safety downgrade.
The US Federal Aviation Administration downgrading the country’s air safety rating late last year came as a shock for the industry.
That could hamper plans for Malaysia Airlines and AirAsia.
MAVCOM chief operating officer Azmir Zain said China, South Korea and Japan all blocked new route applications from Thai airlines after the FAA downgraded Thailand.
Azmir is fearful the same could happen to Malaysia.
If it happened Azmir said Malaysian carriers could be impacted by up to $1 billion in potential lost revenue.
He said there has been no action taken by regulators in the three countries yet.
They are all major source markets for inbound tourism to Malaysia.
The safety downgrade doesn’t affect existing flights but can impact new ones.
