KUCHING: AirAsia Group has dismissed as “inconsequential and self-serving” the comments made by the Board of Airline Representatives (BAR) on its dispute with Malaysia Airports Holdings Bhd (MAHB).
“BAR has no standing in this issue as neither do their member airlines operate from klia2 (Kuala Lumpur International Airport 2) nor affected by the court decision, rendering their comments inconsequential and immaterial.
“We don’t believe that BAR is capable of making positive contributions or comments as they do not represent budget airlines or those who travel on budget airlines,” AirAsia Bhd chief executive officer (CEO) Riad Asmat said in a statement yesterday.
Riad said AirAsia did not collect the passenger service charges (PSC) from the passengers as it believed they should not be burdened into unfairly paying for allegedly an inferior service as they would for the more well-equipped and spacious Kuala Lumpur International Airport.
“Instead, MAHB sued AirAsia to recover this uncollected amount.” he added.
BAR yesterday welcomed the High Court’s decision to dismiss an application by AirAsia Bhd and AirAsia X Bhd to strike out the PSC payment.
The High Court ruled last week that AirAsia and AirAsia X must pay RM40.6 million in outstanding PSC, which the two airlines had refused to collect from passengers to MAHB’s subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB).
“BAR had alleged in a statement that AirAsia’s refusal to collect the extra-imposed PSC charges from passengers ‘had led to an uneven playing field’.
“We believe in and want a level playing field, it is not for any particular airline to dictate,” he said.
MAHB CEO Raja Azmi Raja Nazuddin had also welcomed the court decision, saying it meant MAHB could collect the PSC amount gazetted by the Malaysian Aviation Commission.
“It is uncanny that the comments (made) by Raja Azmi and BAR were similar.
“As far as AirAsia is concerned, their comments are based on proprietary interests and not in the interests of the travelling public.” Riad said.
Hence, he said MAHB should seriously consider building a dedicated and functional low-cost carrier terminal (LCCT), which charges lower rates like in Jakarta and Tokyo, among others.
This will provide the much needed boost for the local aviation industry and position Kuala Lumpur as a key aviation hub.
Based on MAHB’s passenger traffic data, of the 31.89 million passengers who went through klia2 in 2018, 30.91 million or 97 per cent were carried by AirAsia Group.
For comparison, at the KLIA main terminal, which caters mainly to BAR’s full service member carriers, only 28.1 million passengers passed through its gates in 2018.
“Since 2017 until June 2019, a whopping RM1.4 billion or 75 per cent of the total charges and fees paid and remitted by AirAsia Group to MAHB is made up of PSC, which is in reality paid by the passengers.
“This does not include the extra RM23 which AirAsia is supposed to, but has refused to collect from passengers travelling to destinations outside of Asean,” he said.
The remaining 25 per cent of payments to MAHB comprise other airport charges, including landing, parking, aerobridge and facilities rental that are borne by AirAsia Group.
“BAR should, instead of being biased, recognise that LCCs and LCC operations form an integral part of the nation’s aviation and tourism industry.
“They should look at the larger picture of growing Malaysia’s aviation industry and tourism sector, as espoused by Prime Minister Tun Dr Mahathir Mohamad, rather than harp on their own narrow selfish interests,” he said.