MALAYSIA: Malaysia’s aviation landscape is set to change with the arrival of Ascend Airways Malaysia, a new airline taking a different approach to air transport. Unlike traditional carriers that sell tickets directly to passengers, Ascend Airways will focus on aircraft, crew, maintenance, and insurance (ACMI) services, effectively “renting out” aircraft and flight operations to other airlines and businesses.

According to The New Straits Times (NST), Ascend Airways plans to operate Boeing B737-800s and B737 MAX 8s by the end of 2025 or early 2026. They are breaking away from the traditional airline model, positioning themselves as a key player in the business-to-business (B2B) aviation sector.

What is ACMI, and how does it work?

ACMI services, often referred to as wet leasing, involve leasing aircraft along with a fully operational package, including flight crews, maintenance, and insurance, to other airlines, tour operators, cargo companies, and even government organisations. This allows airlines facing seasonal demand spikes, aircraft shortages, or operational challenges to maintain their schedules without investing in additional aircraft and staff.

By adopting this B2B approach, Ascend Airways will support and complement existing commercial airlines rather than competing with them directly. This is a significant shift from previous Malaysian start-up airlines, many of which struggled against established giants like Malaysia Airlines and AirAsia.

Backed by a global aviation powerhouse

Ascend Airways Malaysia is not entering the industry alone. It is the sister company of Ascend Airways UK and is backed by Avia Solutions Group (ASG), the world’s largest ACMI provider, headquartered in Dublin, Ireland.

ASG operates a fleet of over 200 aircraft and has 16 businesses across aviation services, including ACMI leasing, cargo transport, aircraft maintenance, and ground handling. With such a strong parent company, Ascend Airways has the advantage of leveraging ASG’s global expertise, financial strength, and industry connections to establish itself in Malaysia.

Clearing regulatory hurdles

Before launching operations, Ascend Airways must secure the necessary regulatory approvals. In November 2024, it completed its first major step by receiving conditional approval for an Air Service Permit (ASP) from the Malaysian Aviation Commission (Mavcom), as reported by NST. This permit, valid until November 2025, is required for air transport providers not offering scheduled commercial flights.

The airline is now working towards obtaining an Air Operator Certificate (AOC) from the Civil Aviation Authority of Malaysia (CAAM), crucial for conducting flight operations. CAAM CEO Datuk Captain Norazman Mahmud confirmed that Ascend Airways is currently undergoing the AOC approval process, but the timeline for approval remains unknown.

Once the AOC is granted, the airline must apply for a full ASP from Mavcom, a process that takes at least 90 days. Currently, Malaysia has 13 ASP holders, with Ascend Airways being one of only two companies to have received a conditional ASP.

Led by experienced aviation professionals

Heading the airline is Germal Singh Khera, a well-respected figure in Malaysia’s aviation industry with over 30 years of experience. Khera has previously worked with Malaysia Airlines and was instrumental in establishing Mavcom in 2015, bringing extensive regulatory and operational knowledge to Ascend Airways.

Supporting him is a team of industry veterans. Captain Wan Harris, the Director of Flight Operations, brings a wealth of experience in airline management, ensuring smooth and efficient operations. Captain Aminullah Mohamed, as Chief of Pilot Training and Standards, oversees pilot qualifications and maintains high safety standards, while Captain Zahirudin Mohd Farok, the Chief of Pilot Operations, manages flight crew coordination.

Shamsul Idrus, the Head of Ground Operations, ensures seamless airport and logistics handling, and Linda Foo, the Head of Commercial, focuses on business growth and partnerships. Helmy A Razak, leading Continuing Airworthiness Management, ensures aircraft remain in top condition, while Chief Financial Officer Augustinas Zemaitaitis manages financial strategies to keep the airline competitive.

With such an experienced leadership team, Ascend Airways is well-positioned to navigate the complexities of ACMI operations and establish itself as a trusted aviation partner in Malaysia.

A growing trend in the global aviation industry

The ACMI business model is gaining momentum worldwide, with ASG actively expanding its presence beyond Europe. Reports indicate that ASG is working on launching four new ACMI airlines in Brazil, Malaysia, the Philippines, and Thailand.

The Philippines and Thailand are also in the process of securing AOCs for new wet-lease airlines under ASG, reflecting the growing demand for flexible aircraft leasing solutions in Asia. As travel demand fluctuates and airlines seek more cost-effective fleet management strategies, ACMI providers like Ascend Airways are set to play a pivotal role in the aviation sector.

Reddit reactions: A practical solution or a stopgap fix?

News of Ascend Airways’ launch drew mixed reactions on Reddit, with many seeing its ACMI model as a smart, flexible solution for the industry. One user noted, “This is great for adding capacity for peak season,” highlighting how the airline could help carriers manage high-demand periods without costly fleet expansion.

Another commenter stated, “It seems to be a mix of Grab and Socar or Hertz but for planes.” This analogy reflects ACMI’s on-demand nature, where airlines can temporarily “rent” aircraft and crew instead of investing in new planes.

However, some were more sceptical, with one remarking, “Basically, they step in when airlines can’t get their operations together.” While made in jest, this underscores a key reality: many airlines struggle with fleet management, and ACMI providers like Ascend Airways fill the gaps to keep flights running smoothly.

Overall, Redditors saw the airline as a practical addition to Malaysia’s aviation scene, offering airlines greater flexibility and efficiency in an unpredictable industry. However, its effectiveness and impact remains to be seen.

What this means for Malaysia’s aviation industry

Ascend Airways’ entry into the Malaysian market marks a significant shift in how airlines operate in the region. By focusing solely on leasing aircraft and operational services, the airline avoids the intense competition of commercial passenger flights while still contributing to the industry’s growth.

For Malaysia, this could mean greater connectivity, better support for existing airlines, and new job opportunities in aviation. The airline’s specialised services could also prove valuable for government projects, emergency response missions, and seasonal travel demands.

With the support of ASG, an experienced leadership team, and a clear strategic vision, Ascend Airways is set to redefine aviation services in Malaysia. While challenges remain, particularly in securing regulatory approvals, the airline’s innovative approach could make it a game-changer in the region’s aviation sector.

Read also: Thai Airways bans power banks on all flights following safety concerns

Featured image by Freepik (for illustration purposes only)