KUALA LUMPUR, Dec 14 — AirAsia Group Bhd is adamant in its rejection of Malaysia Airports Holdings Bhd’s (MAHB) increased passenger service charge (PSC), over which the latter is suing the low-cost carrier and a subsidiary.
In the latest response to the lawsuit filed against the group, AirAsia Malaysia chief executive Riad Asmat said the firm had been dutifully collecting RM50 in PSC per pax since 2017 and remitted RM663 million in such fees to the MAHB unit operating KLIA2.
However, he said his firm stopped collecting the PSC when MAHB announced that this would be raised to RM73 at beginning 2018, as the airline disagreed that the fee should be the same at both the full-fledged KLIA and the low-cost terminal of KLIA2.
“AirAsia is not obligated to collect airport tax for MASSB, and we have refused to collect the additional charge from passengers on behalf of MASSB for the following reasons,” he said in a statement explaining AirAsia’s position in the dispute.
“Passengers using KLIA2 should not be charged the same rates as passengers in KLIA, as KLIA2 is a low-cost terminal with far lower levels of service provided to passengers, compared to KLIA, which is a full-service terminal.”
He highlighted AirAsia’s repeated official complaints about “substandard” infrastructure at KLIA2, which he said has had a direct negative impact on his firm’s operations and cost efficiency.
Riad also asserted that KLIA2 suffered from problems such as apron defects, ground depression, flooding, ruptured fuel pipelines, ad hoc runway closures due to continuous resurfacing requirements, closure of departure gates, and damage to aircraft.
The financial cost to AirAsia from such problems and defects also exceeded the amount in PSC arrears that the airport operator was claiming.
Commenting on the lawsuit by the MAHB unit, Riad said the operator failed to take into account the economic benefit that Malaysia accrues as a result of his airline’s operations in the country.
“To consciously curtail air travel, which benefits both the people and the wider economy, in order to enrich a select few is selfish and un-Malaysian,” Riad added.
AirAsia and MAHB have a tense relationship dating back years, tracing back to the airline’s rejection of the previous Low-Cost Carrier Terminal (LCCT) as its designated base of operations.
According to the Edge Malaysia Weekly on December 3, MAHB issue legal letters to both AirAsia and its long-haul unit, AirAsia X Bhd (AAX), in October to demand payment of outstanding PSC for international departures since July 1.
AirAsia has accrued around RM9.4 million in unpaid PSC while AAX was hit with a lawsuit seeking RM26.72 million for similar arrears.
Both organisations previously said they will vigorously defend against the lawsuits seeking payment for charges they deemed to be unjustified and unreasonable.
The Transport Ministry yesterday said it will mediate in the commercial dispute to try and find an amicable solution.
*A previous version of this story contained an error which has since been corrected, following a subsequent statement by AirAsia.
