This article first appeared in The Edge Malaysia Weekly on December 16, 2019 - December 22, 2019

IT is all systems go for Scanda Sky PLT, which recently got in trouble with regulators after advertising itself as a commercial airline even though it did not have the relevant licence.

On Nov 27, the company launched its inaugural flight from Ipoh, Perak, to Guangzhou, China.

The following day, however, it was slapped with a warning letter by the Malaysian Aviation Commission (Mavcom), which had instructed it to stop marketing its services and advertising itself as a commercial airline.

It was found that Scanda Sky does not hold an air service licence (ASL) or an air service permit (ASP), which is required to operate scheduled or non-scheduled air services in Malaysia.

“As of now, the commission will not take any action against Scanda Sky as it has ceased marketing its services, as well as advertising itself as a commercial airline,” Mavcom says in an email reply to The Edge.

“The inaugural flight was chartered by Scanda Sky and operated by Malaysia Airlines Bhd. In this situation, Malaysia Airlines operated the flight as a valid ASL holder,” it explains.

However, the aviation regulator says it will continue to actively monitor Scanda Sky and other aviation industry players to ensure compliance with the Malaysian Aviation Commission Act 2015 [Act 771].

A check on Scanda Sky’s website last Thursday shows that it is still offering twice-weekly flights between Ipoh and Guangzhou. It also introduces itself as a new airplane charter company “chartering flights to provide premium tour and travel packages”.

However, there is no mention that the flights are actually operated by Malaysia Airlines under a charter agreement.

Malaysia Airlines says it had on May 7 entered into a charter agreement with Scanda Sky, and that the deal remains intact. The former currently does not operate flights between Ipoh and Guangzhou.

“The agreement signing was witnessed by Perak Menteri Besar Datuk Seri Ahmad Faizal Azumu. As we have entered into a charter agreement with our charterer, the terms of the agreement continue to be in force unless either party fails to perform its obligations,” the national carrier tells The Edge.

“This is a typical commercial charter business where Malaysia Airlines charters its airplanes to charterers, subject to operational availability and market demand.

“Scanda Sky has been working closely with the Perak government to promote leisure travel between Perak and China,” it adds.

On its website, Scanda Sky notes that the company is led by “young, experienced and energetic entrepreneurs with a vision of becoming an innovative boutique airline in the next two years”.

“Scanda Sky aims to build a standout charter airline with snazzy service, active social network and a fun corporate personality,” it says.

According to the Companies Commission of Malaysia’s website, Scanda Sky describes its businesses as that of providing transport of passengers and freight by air over regular routes and on regular schedules, as well as engaging in travel agency activities.

It also lists 39-year-old executive chairman Tengku Faizwa Tengku Razif and 38-year-old Stanley Hu Jie Yao as the company’s partners.

According to a Nona news article dated Sept 7 last year, Tengku Faizwa, a member of the Selangor royal family, started a company called Ideaspark Sdn Bhd that provides professional training and coaching in mind mapping. She is touted as “Malaysia’s Princess of Memory”. She later ventured into the smartphone business, with a phone that can double up as a mini projector.

Mavcom also notes that following the issuance of the warning letter, it had on Nov 2 met with the representatives of Scanda Sky.

“During the meeting, the commission had reiterated to the CEO and chief financial officer of Scanda Sky that the company had misrepresented itself to the public as a Malaysian carrier. Scanda Sky admitted that it was an oversight on its part for portraying itself as an airline and has further assured the commission that it will suspend the sales of tickets on its website and revamp its website and social media pages to remove any possible misrepresentation that it is an airline,” says Mavcom.

“Currently, Scanda Sky is still making changes to its website. However, the company has taken down the function which enabled potential customers to purchase flight tickets from Scanda Sky’s website,” it adds.

Scanda Sky is not the first airline to have courted trouble with Mavcom.

Since the establishment of the commission in March 2016, it has revoked the licences of five aviation industry players.

Rayani Air Sdn Bhd had its ASL revoked in June 2016, while Eaglexpress Air Charter Sdn Bhd, flyGlobal Charter Sdn Bhd, Asia Tenggara Air Services Sdn Bhd and Airod Sdn Bhd had their ASPs revoked in December 2016, July 2019, July 2018 and April 2019 respectively.

Apart from Scanda Sky, one other company that Mavcom has caught operating without a proper licence is Suasa Airlines Sdn Bhd.

On Jan 9, 2017, the Sessions Court fined Suasa Airlines RM380,000 after the charter airline admitted to operating without a valid ASP.

The company, owned by the MonSpace Group, had flown from Kuala Lumpur to Langkawi on July 22, 2016, without the necessary licence and approval. Suasa Airlines had claimed then that it was a demonstration flight and approved by the then Department of Civil Aviation (now known as the Civil Aviation Authority of Malaysia).

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.