No formal agreement leads to airlines ending LTAM operations arbitrarily

MELAKA - The lack of a formal agreement between the state government and commercial airline companies has led them to unilaterally terminate their services at Melaka International Airport (LTAM), Batu Berendam here.

State Public Works, Infrastructure, Public Amenities, and Transport Committee chairman Datuk Hameed Mytheen Kunju Basheer said it has indirectly led to LTAM's operational failure.

"There was no formal agreement mandating these airline companies to land at LTAM before. Instead, they would base their operations on passenger numbers, and if they suffered losses, they would terminate their services immediately.

"To avoid recurring issues, currently I am drafting a Memorandum of Understanding in which one of the contents is to establish a contract for the period of operation, whether it's for one to three years, and they can no longer terminate their services arbitrarily as before," he said.

He was speaking to reporters after attending the Melaka International Air Carnival 2023 (KUAM'23) coordination meeting chaired by State Tourism, Heritage, Arts and Culture Committee chairman Datuk Abdul Razak Abdul Rahman here today.

Hameed Mytheen said seven commercial airlines, including some from Indonesia and Singapore, have been invited to operate at LTAM.

"While the MOU is currently under discussion at the State Executive Council Meeting (MMKN) level, our goal is to ensure it transforms into a formal agreement," he added.

The media previously reported that LTAM had discontinued its commercial flight operations last month. The final flights were to Penang in June and from Pekan Baru, Indonesia, on Aug 16. - BERNAMA