KUALA LUMPUR: The government, which is in the process of setting up an independent commission on aviation, is said to be considering appointing Malaysian Airline System Bhd (MAS) chairman Tan Sri Md Nor Yusof, Malaysia Airports Holdings Bhd (MAHB) adviser Tan Sri Bashir Ahmad and Transport Ministry secretary-general Datuk Seri Long See Wool as the commission’s members.

“The government is mulling over proposing Md Nor to head the aviation commission as its chairman,” a source close to the matter told The Edge Financial Daily.

Md Nor, who has been serving as executive chairman of the beleaguered national airline since Aug 1, 2011, is expected to resign from his present post before assuming the position as chairman of the aviation commission, the source said.

Md Nor currently sits on the board of Khazanah Nasional Bhd, which is the majority shareholder of MAS with a 69.37% stake.

The source said Long is expected to take on the role of chief executive officer (CEO) of the commission, while Bashir will be appointed a committee member.

Long, 65, is currently on leave and is due to retire from his position in the ministry on Nov 18. Bashir was previously MAHB managing director for almost 12 years.

“The Transport Ministry is looking to table in Parliament the setting up of the commission in March next year,” the source said.

However, it is understood that the government will have to make its recommendation on the commission to the Yang di-Pertuan Agong.

On Aug 29, Khazanah proposed an aviation commission to be set up under its plan to rescue MAS. The commission will act as an economic regulator for the aviation industry.

Part of the commission’s key roles includes promoting the development of the sector through a more regulated structure, in which the growth of tourism and business is appropriately balanced.

“It includes protecting consumers through transparent, easily comprehensible reporting of fares, service levels and passenger rights, and arbitrating disputes between industry players,” it said.

It also pointed out that the commission would be involved in managing developmental air routes (namely, those that are not commercially viable) through a competitive bidding process, similar to the “Essential Air Service” programme in the US or similar arrangements in China and Indonesia.

Khazanah managing director Tan Sri Azman Mokhtar was quoted as saying that the establishment of the commission will have Malaysia adopting the best international practices.

In 2010, a similar call for a clear aviation policy for Malaysia to ensure free and fair competition was made by former MAS CEO Tengku Datuk Azmil Zaharuddin and AirAsia X Bhd CEO Azran Osman-Rani.

Pulai Member of Parliament Datuk Nur Jazlan Mohamed, who is chairman of the Public Accounts Committee, reportedly said the proposed aviation commission should not solely favour cash-strapped MAS and should not disrupt operations of other players in the country’s aviation industry.

“The commission should act in the interest of the nation by improving more routes and connectivity between domestic and international markets to make it accessible for all Malaysians,” he told The Malaysian Insider following Khazanah’s announcement of the commission.

AirAsia Bhd co-founder and group CEO Tan Sri Tony Fernandes previously told The Edge weekly in an interview that the setting up of the aviation commission was a positive step only if it were truly independent and fair.

Fernandes said the aviation commission should comprise individuals who are not from the airline industry or the government.

This article first appeared in The Edge Financial Daily, on November 10, 2014.