SINGAPORE (Nov 25): The Civil Aviation Authority of Malaysia (CAAM) has sought to allay concerns over the recent US downgrade of its safety rating, saying it was purely on its regulatory oversight function. But aviation experts expect the drop in rating to have an impact on the image of the country, as well as on Malaysian air carriers, if other aviation authorities follow suit.

The US Federal Aviation Administration’s (FAA) downgrade of Malaysia’s technical regulator from a Category 1 to a Category 2 rating has claimed its first casualty in Malaysia Airlines Bhd, with American Airlines ending their code-share arrangements on Nov 15.

This is a further setback for the national carrier, which is already facing a challenging operating environment and making losses.

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