Friday 26 Apr 2024
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KUALA LUMPUR (June 25): Tan Sri Tony Fernandes, group chief executive officer of AirAsia Group Bhd, the largest low-cost carrier in Asia, took to social media today to slam Malaysian Aviation Commission (Mavcom) again over the standardisation of the passenger service charge (PSC) between the Kuala Lumpur International Airport (KLIA) and klia2 in Sepang.

In his LinkedIn post titled "One-size PSC does not fit all", Fernandes said an airline in any country cannot function without government support.

"The standardisation of the PSC between the two terminals is senseless and fails to reflect the cost incurred in developing and managing the airport in accordance with ICAO's (International Civil Aviation Organization) policies, which encourages the development of charge-based formulas to benchmark the level of airport facilities and services," he wrote.

"Evidently, no airports are built the same and there should not be a 'one-size fits all' approach. Imposing equal charges for different levels of facilities and services is discriminatory as it puts the less equipped airport at a disadvantage and more importantly, affects the low-cost market which is much more sensitive to price variations," he added.

In a series of Twitter posts today, Fernandes also questioned Mavcom’s claim of protecting consumers on one hand, while charging them on the other, despite the difference in infrastructure between KLIA and klia2, the latter of which AirAsia operates out of.

“Mavcom claims it’s protecting passengers. How can they when they want to raise airport tax (PSC) and make KLIA and klia2 (have) the same airport tax... when it’s clear that klia2 is vastly inferior to KLIA. How are they protecting consumers?” he asked.

“Asean and domestic airport tax is already the same. And we have been protesting saying our passengers are getting a raw deal. No aero train. Not even enough seats in each lounge, narrow corridors, poor check-in facilities, (and have to) go through a shopping mall to get to check-in desk,” he said.

Fernandes cited Shangri-la Hotel and Tune Hotel to reflect the difference in facilities between KLIA and klia2.

“Would Shangri-la and Tune Hotel charge the same (room rates)? No. Because no one would come to Tune Hotel (if it does that). Shangri-la has much better facilities. But the rakyat has no choice. Only one airport. So Mavcom should ensure airport does not overcharge or have same facilities,” he said.

“Mavcom should walk the talk. Not just put press release out and say they are protecting the consumers. Is protecting the consumers allowing MAHB (Malaysia Airports Holdings Bhd) to charge the same airport tax between KLIA and klia2?” he added.

AirAsia and Mavcom have been at loggerheads after the aviation regulator rejected the airline's appeal against the hike in PSC of non-Asean flights out of klia2 to RM73 instead of its proposed RM37.

Starting Jan 1, the PSCs for all airports in Malaysia have been standardised to RM11 for domestic destinations and RM35 for Asean destinations. For places beyond Asean, departing passengers have to pay RM73 if they are flying out of KLIA and other airports excluding klia2, where passengers are paying a PSC of RM50.

Prior to this, the International Air Travel Association and full service carriers had urged the Malaysian government to establish a level playing field for all airlines in Malaysia by considering a PSC that is common to both KLIA and klia2.

AirAsia's share price fell seven sen or 2.26% to close at RM3.03 today, giving it a market capitalisation of RM10.26 billion.
 

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