In accordance with MAVCOM`s guidelines for defining the market for air transport in the market, the hypothetical test of monopolies is relevant to the assessment of the aviation market. The test consists of the services market and the geographic market. The European Union signs an air services agreement with Malaysia Market access is governed by licensing requirements. The operator must have a ground licence (GHL) granted by MAVCOM for these services. The regulations provide for dispute resolution procedures for disputes between two or more air service providers. Suppliers are required to try an amicable solution first through mediation within the allotted time. If the suppliers are unable to resolve the dispute out of court, MAVCOM must hear and resolve the dispute. MAVCOM is required to keep a list of its decisions. The first major regulator is the Civil Aviation Authority of Malaysia (CAAM) under the Malaysia Civil Aviation Authority 2017 (CAAM Act 2017). There are two primary statutes governing the functions of CAAM: CAAM Act 2017 and the Civil Aviation Act 1969 (CA Act 1969). The CA Act of 1969 contains and gives effect to the 1944 International Civil Aviation Convention (Chicago Convention). In general, CAAM has the power to regulate the safety of civil aviation, including the definition of standards and their application, the provision and operation of air services, and compliance with Malaysia`s international civil aviation obligations. Code-sharing and airline joint ventures are governed by mavcom and competition guidelines.
In general, the law prohibits an agreement between companies that has the effect of preventing, restricting or significantly distorting competition in the market. The guidelines for anti-competitive agreements explicitly include code-sharing agreements for airlines and partnership or joint venture agreements as agreements that may contravene the ban.