Embattled Charter Airline To Settle All Outstanding Dues By Year S End Says Ceo

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Systematic Aviation Services Sdn Bhd CEO Ida Adora Ismail said the company was focused on leveraging on its role as one of the nation’s few providers of general aviation maintenance for helicopters and small aircraft. (Systematic Aviation Services Facebook pic)
PETALING JAYA: The CEO of embattled charter airline Systematic Aviation Services Sdn Bhd (SAS) has assured its employees that the firm will settle all outstanding salaries, statutory payments and critical debts to stakeholders by the end of the month.
Ida Adora Ismail, whose late father founded the company 30 years ago, said this had been made possible by the fresh injection of funds from a source looking to help turn around the company, which she admitted was facing major financial problems.
Ida said settling the company’s millions of ringgit in outstanding wages and dues to the staff, statutory bodies and stakeholders would be the first step towards getting the Malaysian Aviation Commission (Mavcom) to reissue its air service permit (ASP), which had lapsed on Feb 29.
“Once these payments are settled in full, we can apply for a fresh air operator’s certificate (AOC) from the Civil Aviation Authority of Malaysia CAAM).
“The AOC lapsed in August, as the aviation regulator did not renew it due to the lack of ASP. Both are needed together for our operations,” she told FMT.
Ida did not divulge the amount involved in the company turnaround exercise, but said all the required payments would be settled by Dec 31.
She reminded the employees that the company had sacrificed for their benefit during the Covid-19 pandemic, even when 70% of its business activities was disrupted.
“We are aware the company needs to realign to fulfil its dues and obligations. Give our latest financial plan time to breathe and flourish,” she said.
SAS ran into trouble when Mavcom refused to renew its ASP over the company’s failure to remit millions in Employees’ Provident Fund contributions and tax deductions to the respective statutory bodies over the past few years.
On March 12, CAAM suspended SAS’s AOC for 90 days in relation to its failure to have its ASP renewed. The AOC was then extended to July 31 and finally lapsed a day later.
Ida said once the firm was issued the ASP after the dues were settled, it would make a fresh application to CAAM for its AOC, which would take about three to four months to be approved.
“We hope CAAM will consider issuing it as soon as possible as it will get us back on track, our employees can go on with their lives normally and we can re-employ our skilled staff and resume all our aviation services in full gear,” she said.
She said the company was focused on expanding its general aviation maintenance business, leveraging on its years of business relationships and its role as one of the nation’s few providers of general aviation maintenance for helicopters and small aircraft.
Ida said the company’s aeronautical engineering school, which produces licensed aircraft engineers and provides training and regulatory courses, was still operating normally, with 45 out of 100 enrolled students graduating this year.
“We are helping meet the high demand for fresh engineers in the nation’s aviation industry and addressing the sector’s growing needs,” she said.
Ida said SAS held a town hall last week, which saw an encouraging response from staff who understood the serious efforts being taken to ensure the company would not fold.
She conveyed her sincere gratitude and appreciation to all business partners, stakeholders and staff members for their patience and understanding. - FMT

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