Systematic Aviation Services (Kuala Lumpur Subang) has seen its suspended air operator's certificate (AOC) expire after the carrier failed to renew its air services permit (ASP), a Civil Aviation Authority of Malaysia (CAAM) spokesperson confirmed to ch-aviation.
CAAM suspended Systematic's AOC earlier this year after the Malaysian Aviation Commission (MAVCOM) declined to renew its ASP, citing nonpayment of salaries and tax liabilities. Under Malaysian laws, an operator must have a valid ASP in order to hold an AOC. CAAM initially suspended Systematic's AOC for three months, giving it another 60 days to regain its ASP. However, the grounded operator has not achieved this, and the AOC was moved from suspended status to cancelled on August 1.
"Systematic’s AOC has expired as of July 31, 2024 naturally. Hence they are no longer eligible to exercise the privileges of its AOC," the CAAM spokesperson said. "If they want to do any commercial activity and get back the AOC, it has to go through the normal process of getting the AOC." Reportedly, a fresh application will take at least three months as it will involve a company-wide audit.
Systematic Aviation Services has an established three-decade track record as a local MRO provider for government and privately-owned rotary and fixed-wing aircraft. More recently, it secured a contract with Malaysian property developer Ikhasas Sdn Bhd via its subsidiary company Oriental Sky Sdn Bhd to ferry passengers between Kuala Lumpur and an Ikhasas-developed resort. This resulted in Oriental Sky providing it with a Cessna (single turboprop) 208EX seaplane earlier this year.
However, Systematic's regulatory problems meant they never operated the aircraft for its original purpose. In July, the aircraft ferried to Singapore Seletar for maintenance. Local outlets reported Oriental Sky had repossessed it. Systematic later denied this.
ch-aviation has contacted Systematic Aviation Services and MAVCOM for comment.