Ascend Airways Malaysia targets November launch to plug Southeast Asia's capacity gap

KUALA LUMPUR: Ascend Airways Malaysia expects to begin operations by mid-November this year as the airline, which will offer ACMI (aircraft, crew, maintenance and insurance) services, moves into the advanced stage of securing its air operator certificate (AOC).

Ascend Airways Malaysia chief executive officer, Germal Singh said the process has been a challenging but productive journey with the company working closely with the Civil Aviation Authority of Malaysia (CAAM) to ensure all regulatory requirements are met.

"We're progressing pretty well, and I'm quite confident that we should be able to stick to our timeline.

"We are looking at the end of October (for the AOC) and hopefully we will be operational by mid-November," he said at a panel session at Expanding Asia's Aviation Market with ACMI Leadership Forum here today.

In June this year, Germal said Ascend Airways Malaysia would receive its first Boeing B737-800 freighter in the third quarter to support its cargo launch.

Two additional B737-800s configured for passenger service are scheduled to join the company's fleet by end-2025 and early 2026.

Ascend Airways Malaysia's entry into the local market was first reported by Business Times in March this year.

The company would operate under a wet-lease model, providing ready-to-fly aircraft complete with crew, maintenance, and insurance to airlines and logistics providers to support their seasonal capacity needs. It will not be selling flight tickets directly to passengers.

Ascend Airways Malaysia is a sister company of UK-based Ascend Airways. Both companies are backed by Avia Solutions Group, the world's largest ACMI provider.

Germal said the ACMI business model will provide timely solutions for airlines in Malaysia and the region.

"ACMI has not been a popular concept in this region. Most airlines, when they want to grow or expand capacity, tend to lease or buy aircraft.

"What we are offering is flexibility and dependability in terms of providing that capacity while allowing operators to maintain their own identity and focus on their core business," he said.

Germal added that ACMI offers an alternative solution for carriers that are constrained by new aircraft delivery delays or limited access to the aircraft leasing market.

He said this positions Ascend Airways Malaysia to fill a gap in Southeast Asia's fast-expanding aviation industry.

"With more than 600 million people in Southeast Asia, the growth opportunities are tremendous. Connectivity is improving, and traffic has surged in the post-Covid period.

"But at the same time, it's not easy for airlines to acquire aircraft due to ongoing supply chain issues in the leasing market. This is where Ascend Airways Malaysia will play a very critical role," he said.

CAAM' director of flight operations, Captain Mohd Nazri Borhannuddin said ACMI could strengthen Malaysia's aviation ecosystem at a time when the industry is bracing for rapid growth.

"We are expecting 112 million passengers in 2025. How do we manage that? To us as the regulator, ACMI creates an opportunity for resilience, adaptability and disruption (management). And also, another question could be 'do you need another airline in Malaysia?'

"To us as the regulator, we see there's opportunity for us to ensure that our aviation industry continues to be resilient.

"We can manage (flight) disruption better. It's not about replacing or fighting for market share. It's about complementing each other."

Mohd Nazri added that ACMI would also benefit the Malaysian public by ensuring that airlines can manage demand spikes and service disruptions more effectively.

At the same time, it provides regulators with an opportunity to refine the processes surrounding leasing approvals and learn how ACMI arrangements could reshape the local aviation landscape.