The US Federal Aviation Administration (FAA) has restored Malaysia's category 1 rating safety rating, paving the way for the country's airlines to expand services to destinations in the USA. "Under a Category 1 rating, properly authorised Malaysian air carriers are permitted to serve the United States and enter into code-share agreements with US carriers without limitation," the FAA states. The return to category 1 status follows "a thorough review of [Malaysia's] progress in improving its safety oversight processes". The FAA had downgraded Malaysia to a category 2 rating in November 2019, deeming it noncompliant with ICAO (International Civil Aviation Organization) safety standards following an audit in April 2019. Countries are either listed as either category 1 or 2, depending on whether it meets ICAO safety standards. Malaysia's downgraded safety rating spurred American Airlines to unilaterally remove its codeshare on services operated by flag carrier Malaysian Airlines, which stressed then it still planned to place its code on American-operated services. AirAsia X, the only Malaysian carrier with scheduled services to the USA, welcomed the reinstatement. "The reinstatement is set to open more opportunities for its future medium to long-haul network plans especially to the US, and other Asian countries including Japan and Korea as they will grant the relevant regulatory approvals based on FAA standards," it says. AirAsia Aviation Group's group chief executive Bo Lingam states: "After an industry reset following the pandemic, this announcement could not have come at a better time as travel demand picks up. Category 1 safety rating will not only allow us to expand our future network plans but also stabilise the country’s aviation industry as a whole." AAX operates direct flights to Honolulu, Hawaii via Osaka, Japan. Data shows that AAX was the sole Malaysian carrier operating to the USA when it launched services between Kuala Lumpur and Honolulu in July 2017 until March 2020, amid the pandemic. It will resume eight weekly services on the route from February 2023. Malaysia Airlines exited the US market in April 2014, after it ceased its sole Los Angeles service. The carrier also previously offered flights to Newark Liberty International airport, but suspended the service from October 2009.