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MAHB’s airport tax will undo Malaysia’s position as low-cost hub, AirAsia executive chairman says

Tan KW
Publish date: Sun, 04 Aug 2019, 12:12 AM
Tan KW
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KUALA LUMPUR, Aug 3 — AirAsia Group Bhd co-founder and executive chairman Datuk Kamarudin Meranun today expressed his disappointment over the high airport tax that has been imposed by Malaysia Airports Holdings Bhd (MAHB) on passengers.

This follows after a protracted court battle between the MAHB and AirAsia which was triggered after the latter refused to collect RM73 Passenger Service Charges (PSC) or simply known as airport tax that the Malaysian Aviation Commission (Mavcom) had imposed on non-Asean flights at the klia2.

Posting his views on the matter on his Instagram today, Kamaruddin said the move had only affected the carrier’s position as a low-cost airline and its subsequent success in turning Kula Lumpur as the low-cost aviation capital of the world for the last 18 years.

“However, Malaysia’s sole airport operator #MAHB has unjustifiably increased Passenger Service Charges (PSC) last year from RM50 to RM73, but we refused to collect that extra amount from our passengers and were sued by MAHB.

“Last month, they obtained a summary judgment against us and while we appeal, we still have to pay monies we never collected from our passengers. Now, we have no choice, even as we appeal in courts, and will very soon have to collect the new charges from our passengers, making travel more expensive,’’ he said.

 

Kamarudin was referring to the High Court decision’s last month that ordered them to pay Malaysia Airports (Sepang) Sdn Bhd (MASSB) at least RM40.6 million owed in arrears of PSC.

AirAsia also lost its application to strike out the suit when the High Court allowed a summary judgment by MAHB — the parent company of MASSB — to be entered in the three civil suits against the airlines.

Kamarudin said while the airliner is now collecting the charges under protest, any collateral damage done by the high airport tax towards the nation’s position as a low-cost air travel hub is solely on the shoulders of MAHB.

“While we are doing it under protest, and know it burdens our passengers, we have no choice. That’s how a monopoly-like MAHB works.

“The tragedy will be that we are likely to lose our position as a low-cost hub. And that will be a loss to the country and to our hospitality industry. This, MAHB, is on you,’’ he said.

https://www.malaymail.com/news/malaysia/2019/08/03/mahbs-airport-tax-will-undo-malaysias-position-as-low-cost-hub-airasia-exec/1777370

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Be the first to like this. Showing 6 of 6 comments

stockmarket101

You should have collected the PSC in the first place and stop trying to the hero!

2019-08-04 11:40

stockraider

correct mah.... if u r airasia shareholders....u should be worried of Tony irresponsible behavior loh....!!

Rafidah aziz should advice Tony about the risk of not collecting loh.......!!

Posted by stockmarket101 > Aug 4, 2019 11:40 AM | Report Abuse

You should have collected the PSC in the first place and stop trying to the hero!

2019-08-04 11:44

stockraider

If airasia wants to be hero.....collect the higher PSC....but do not pass the proceeds to MAHB.....keep it in trust loh....!!

If airasia wins the case agst MAHB....then refund....the proceeds to its customers after legal fees, administration fees and all refund incidental expenses loh.......!!

That is what & How a Owner with Brain should do mah.....!!

Posted by stockraider > Aug 4, 2019 11:44 AM | Report Abuse X

correct mah.... if u r airasia shareholders....u should be worried of Tony irresponsible behavior loh....!!

Rafidah aziz should advice Tony about the risk of not collecting loh.......!!

Posted by stockmarket101 > Aug 4, 2019 11:40 AM | Report Abuse

You should have collected the PSC in the first place and stop trying to the hero!

2019-08-04 11:51

johnny cash

Post removed.Why?

2019-08-04 13:13

Ammar Roshidy

Clearly for someone who has traveled to most Asian airports terminal 2 at klia is the worst airport in SEA. Full of shops and no place to rest and wait for connecting flight. Noise level too high. Air conditioning has gone missing. Toilets and paying rooms are good. Food is not the stuff I would want to eat. aND MAHB WANTS TO COLLECT WHAT, FOR THEIR ROTTEN SERVICE.

2019-08-04 13:34

stockraider

Post removed.Why?

2019-08-04 15:35

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