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AirAsia wants govt to scrap planned airport tax increase

KUALA LUMPUR: Budget carrier AirAsia Bhd has raised its concerns regarding the passenger service charge (PSC) new rate structure that would be implemented effective January 1 next year.

The airline said it has not received any official notification from the Malaysian Aviation Commission (Mavcom) on the new PSC but should the rates be increased, AirAsia will submit appeals to the government to remove the tax increase.

"This increase in tax will be a direct burden to be shouldered by the people, making air travel more expansive and reducing overall demand for services offered by all airlines operating in Malaysia, crimping tourism, threatening jobs and hurting the economy."

"Malaysia will also lose its competitiveness as a regional low-cost hub," said AirAsia Bhd CEO Aireen Omar, adding that the airline has received numerous enquiries from the public on the impending PSC increase.

It is believed that the new PSC will be RM11 for domestic flights and RM73 for international flights at Kuala Lumpur International Airport (KLIA), klia2 as well as all other airports nationwide.

The current charges at KLIA are RM65 for international destinations and RM9 for domestic travel, while at klia2 the charges for international and domestic destinations are RM32 and RM6, respectively.

The new PSC structure will also introduce a charge on inter-Asean flights, which is believed to be RM35.

Aireen said AirAsia is pleased that the government has acknowledged the distinctions between low-cost carriers and full service carriers, which would be a factor in considering the applicable PSC.

"The facilities at klia2 are far inferior to those in KLIA as there is no aerotrain, there is a lack of walkalators, long walking distances, smaller gates with poor boarding efficiency, just to name a few. The differences between the two terminals alone are obvious reasons why the PSC should not be the same," she said, adding that air travel has become a necessity for the people instead of a luxury for the privileged.

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