CAAM looks to the skies as it seeks to become independent body

Civil Aviation Authority of Malaysia board member Razali Mahfar says it wants to wean off its reliance on Putrajaya for subsidy.

PUTRAJAYA: The Civil Aviation Authority of Malaysia (CAAM) is looking to the industry to fund it as it seeks to become a statutory independent body.

CAAM board member Razali Mahfar said its emolument is still tied to the government pay scheme.

Because of that, he said, CAAM could not offer a competitive compensation package when compared to the industry.

“Our immediate task is to decouple from the government’s pay scheme. To do that, we must be self sufficient,” he told reporters here today.

Razali said that to become self sufficient it must turn to “user pay”.

“That means industry must to a certain extent fund the authority,” he said, adding that they are finalising the model to present it to the government.

Earlier, Razali revealed that CAAM generates about RM120 million a year, while operation costs stand at about RM350 million annually.

This was why, he said, CAAM was seriously looking at the user pay model to wean off its reliance on Putrajaya for subsidy.

He said the authority was looking at its fees and regulatory charges and has been engaging with key players in the country.

“They are quite positive and understand that all other authorities in the world run their businesses on a user pay and recovery model,” he said.