Analyst: HR problems weighing down CAAM

Maybank IB Research has cited human resource problems as a cause of Civil Aviation Authority Malaysia's (CAAM) safety audit problems.

In a note today, the firm said CAAM does not have enough qualified staff because of bureaucracy.

"Civil aviation roles are administered by the government via the Public Service Department. Very often, the PSD allocates new staff based on their availability, rather than suitability.

"Many times CAAM has been provided fresh university graduates with non-technical backgrounds by the PSD as their new staff. This is not ideal.

"The profession is highly technical in nature and requires deep understanding of international law, physics, mathematics and other sciences," the firm said in a research note today.

CAAM also suffers from poor staff retention because they are underpaid. Maybank IB Research said the staff often take eight to 12 years of training before they are deemed qualified.

However, as there are better prospects abroad, CAAM staff are often poached once they are deemed qualified.

"The remuneration package offered for qualified air traffic controllers and

aircraft safety auditors (abroad) are four to five times higher than what they earn in CAAM.

"Therefore, it is understandable why CAAM suffers from a low retention rate," the report states.

Other problems faced by the CAAM are bad aviation infrastructure outside of Kuala Lumpur and the lack of follow-up actions on previous audits.

CAAM was recently downgraded by the US Federal Aviation Administration (FAA) due to its shortcomings as an aviation regulator.

The immediate impact is that the US will bar CAAM from adding flights to or from the US.