MSIA COMMITTED TO ENSURING SURVIVAL OF AVIATION INDUSTRY

KUALA LUMPUR, June 8 (Bernama) -- Malaysia is committed to playing a part in
ensuring not just the survival but the continued strengthening of the aviation
industry, Prime Minister Najib Razak said Monday.

He said the country's experience had shown that with sound policies, coupled
with flexibility and agility in responding to changing circumstances, the
aviation industry could survive and even thrive in spite of an unforgiving
economic climate.

"Clearly, the aviation industry is far too important for governments to
ignore or let fall by the wayside. The Malaysian government is fully
supportive of the aviation industry as a key sector of business and commerce,"
he said in his opening address at the 65th International Air Transport
Association (IATA), Annual General Meeting (AGM) here.

Among the intiatives taken by Malaysia to strengthen the aviation industry,
especially for the long term, is to work closely with other Asean member
countries to look into the possibility of a single aviation market, as in the
European Union.

"This will probably be some distance in the future, but it is an
exciting possibility, none the less," he said.

The Asean Roadmap is to fully liberalise air services in the region by 2015,
he added.

Other efforts undertaken by the Malaysian government includes helping
airlines to reduce fuel consumption and carbon emissions through revised
air traffic control procedures, as well as the implementation of a Continuous
Descent Approach, for aircraft landing at the Kuala Lumpur International
Airport(KLIA).

He said the trial currently involves Malaysia Airlines, AirAsia and
Singapore Airlines and would eventually be expanded to include other carriers.

Najib added that Malaysia was also committed to working with the industry in
not only reducing air travel costs but also improve efficiency and
facilitation of passenger and freight movements at its airports.

On a broader level, he said Malaysia had responded to a "mayday" call
from airlines' by announcing a 50 percent rebate on aircraft landing fees at the
KLIA as part of the two-year stimulus package, starting last April.

This is expected to benefit the airlines flying into Malaysia to the tune
of RM200 million.

However, Najib also urged the industry itself to look inward and reflect on
the way it has evolved, the changes that must now take place in order to
prepare for a future fraught with risks and uncertainties and beyond the role
played by governments.

"I am certain that other governments too are looking into every possible
means of ensuring the industry survives this global economic crisis and
gains greater resilience for the future," he said.

He added that the air transport industry together with governments must work
hand in hand to find solutions to map the way forward.

"As the the challenges today, would likely resurface time and again, the
industry must find a way to insulate itself so that future shocks could be well
absorbed without too much impact or damage to the aviation players," he said.

In Malaysia, Najib said the national aviation sector had a high multiplier
affect of 12.5 times to the overall economy in terms of tourism, infrastructure
and logistics development.

Meanwhile, the aviation industry's global economic impact is estimated at
US$3.5 trillion or 7.5 percent of the world's gross domestic product annually.
--BERNAMA