Aviation
What We Do
Our Aviation practice advises airlines, aircraft operators, lessors, financiers, and aviation‑related businesses on a broad range of legal, regulatory, and transactional matters. We support clients operating in a highly regulated environment, providing advice across aircraft acquisition and leasing, aviation finance, regulatory compliance, and operational arrangements.
Our experience includes advising on aviation‑related mergers and acquisitions, due diligence exercises, and corporate restructuring transactions involving aviation businesses. We also regularly act for borrowers and financiers on aircraft financing and structured funding arrangements. The practice combines sector‑specific regulatory knowledge with transactional and financing expertise, enabling us to deliver practical, commercially aligned advice that supports efficient execution and compliance within Malaysia’s aviation and cross‑border regulatory frameworks.
How We Can Assist You
We advise clients on aviation‑related transactions and operational matters throughout the lifecycle of their businesses, from acquisition and financing of aircraft to regulatory compliance and corporate transactions. Our work includes advising on aircraft financing and leasing structures, aviation‑related capital market and funding exercises, and mergers and acquisitions involving aviation companies.
We assist clients in managing regulatory and approval requirements, coordinating with financiers, underwriters, and other stakeholders, and addressing legal risks specific to the aviation sector. Our integrated corporate, finance, and regulatory capabilities allow us to provide coordinated advice on complex, multi‑jurisdictional aviation transactions. Throughout each engagement, we focus on delivering clear, practical legal solutions that align with our clients’ commercial objectives and operational requirements.
FAQs
What laws regulate aviation in Malaysia?
Aviation in Malaysia is governed by the Civil Aviation Act 1969 and related regulations, administered by the Civil Aviation Authority of Malaysia and the Malaysian Aviation Commission. These laws cover safety, licensing, airworthiness, and economic regulation of aviation services.
What licences are required to operate an airline in Malaysia?
Airline operators must obtain an Air Service Licence or Air Service Permit, depending on the nature of services, as well as an Air Operator Certificate issued by CAAM. These approvals confirm compliance with safety, operational, and financial requirements before commencing operations.
What is an Air Operator Certificate (AOC)?
An Air Operator Certificate is a regulatory approval confirming that an operator has the professional capability, safety systems, and organisational structure required to conduct commercial air transport operations in accordance with applicable aviation regulations and standards.
How are aircraft financing and leasing structured in Malaysia?
Aircraft financing is typically structured through operating or finance leases, secured lending, or Islamic financing arrangements. Malaysia’s adoption of the Cape Town Convention enhances creditor protection and facilitates enforcement of security interests in aircraft assets.
What role does MAVCOM play in the aviation sector?
The Malaysian Aviation Commission regulates economic aspects of the aviation industry, including competition, consumer protection, and licensing of air service providers, complementing the safety oversight functions performed by CAAM.
What are key aviation safety requirements in Malaysia?
Operators must comply with safety standards set by CAAM and international requirements issued by the International Civil Aviation Organization. This includes maintenance standards, crew qualifications, and operational procedures designed to ensure passenger and aircraft safety.
What is the difference between wet lease and dry lease in aviation?
A wet lease includes the provision of aircraft, crew, maintenance, and insurance by the lessor, whereas a dry lease involves only the aircraft, with the lessee responsible for operations. The applicable regulatory requirements depend on the structure of the lease arrangement.
How are aviation disputes resolved in Malaysia?
Aviation disputes may be resolved through litigation, arbitration, or dispute resolution mechanisms specified in contracts. Cross-border aviation transactions often include arbitration clauses to ensure neutrality and enforceability across jurisdictions.
What insurance is required for aviation operations?
Aviation operators are required to maintain insurance covering liabilities to passengers, cargo, third parties, and damage to aircraft. The scope and limits of coverage are typically prescribed by regulatory requirements and contractual obligations.
What is deregistration and export of aircraft?
Deregistration and export involve removing an aircraft from the Malaysian registry and transferring it out of the jurisdiction, often in enforcement scenarios. The process is governed by applicable regulations and may be supported by creditor rights under international conventions.
Why We Stand Out
Quality
Personalized service from a focused team of lawyers, capable of handling complex, high-value transactions. Agile and client-focused, offering premium expertise without the bureaucracy of larger firms.
Experience
Extensive experience engaging with government-linked companies (GLCs), public-listed companies (PLCs), and private corporations across diverse industries.
Strong capability in handling compliance-heavy projects, corporate governance, and large-scale infrastructure or financing transactions.
Global
Active involvement in LAWorld, a non-exclusive international legal network of nearly 70 independent mid-sized law firms across 100 cities worldwide.
This membership gives MRCO clients instant access to vetted foreign counsel, local expertise, and seamless support for cross-border transactions and disputes.
Digital
MRCO operates as a digitally forward firm, utilizing modern cloud tools and cutting-edge hardware and software. Its meeting rooms feature the latest meeting tools to ensure seamless connectivity, reflecting the absolute commitment to legal innovation in Malaysia today.
Sustainable
MRCO is an ESG-driven law firm, embedding sustainability principles into its daily operations and legal advice.
Actively developing ESG clauses across multiple practice areas and guiding clients toward sustainable business practices aligned with global standards.