LOW-COST carrier AirAsia owes Malaysia Airports Holdings Bhd (MAHB) RM110.36 million in service charges.

Transport Minister Datuk Ong Tee Keat said the airline accumulated the amount between 2002 and March 31 this year for use of airports nationwide.

"As far as I know, the amount is still not paid as AirAsia did not agree with the rates charged by MAHB. The carrier wants the rates lowered," he said to points raised by MPs during the debate on the Royal Address.

As a result, Ong said, the matter was brought to the Finance Ministry to be resolved.

Wee Choo Keong (PKR-Wangsa Maju) questioned Ong's answers, saying on May 13, the ministry, in a written reply, stated that the amount owed was only RM5.4 million.
"That was just a part of the amount owed. What I'm telling you now is the total amount owed by AirAsia at all MAHB airports nationwide."

On the current price war between AirAsia and Malaysia Airlines Bhd (MAS), he said the ministry would not interfere as long as the competition remained healthy.

Ong said it was a business decision by both airlines and the ministry had no influence over the matter.

"The MAS zero-fare promotions are limited to a small amount of seats on certain sectors, especially on routes with unsold seats or low passenger loads."

He said the competition would not hurt the carriers as both are of different categories, adding that if there was any misleading advertisements by either carrier on promotions, consumers could lodge a report with the ministry or the consumer claims tribunal.

On the upgrading of the Tioman airport, which has raised concerns that the island's environment would be adversely affected, he said studies showed that less than 10 per cent of the coral reefs near the airport needed to be relocated.

"The ministry is taking steps to relocate the reefs. It has also undertaken other studies such as sand source study, analysis of grains, social impact study and a geological study to ensure the island's environment is preserved."