Air Asia to appeal against proposed airport tax increase

 |Sep 23, 2016
Aireen also stressed that Malaysia will also lose its competitiveness as a regional low-cost hub.
Aireen also stressed that Malaysia will also lose its competitiveness as a regional low-cost hub.

AirAsia Bhd will submit an appeal to the government to rescind a proposed increase in the Passenger Service Charge (PSC) or airport tax.

In a statement today, AirAsia said it has received numerous enquiries on an article published by a local news portal on the impending increase in the airport tax, but the low-cost carrier has not received any official notification from the Malaysian Aviation Commission (Mavcom).

AirAsia Chief Executive Officer Aireen Omar said the higher tax would be a direct burden to the people, making air travel more expensive and reducing overall demand for services offered by all airlines operating in Malaysia, crimping tourism, threatening jobs and hurting the economy.

“We hope that our fears and concerns of our guests are unfounded, but if it turns out to be true we will on behalf of our guests and the people, submit appeals to the Government of Malaysia to remove such increase in the tax,” she added.

Aireen also stressed that Malaysia will also lose its competitiveness as a regional low-cost hub.

However, she expressed confidence that the Malaysian government and Mavcom will put the nation’s long-term interests, the people and their jobs first, in line with the government’s plans towards a stronger and more prosperous Malaysia.

“We are pleased that the Malaysian government has acknowledged the distinctions between low-cost carriers and full-service carriers which would be a factor in considering the applicable tax,” she said, adding that the differences between the facilities in klia2 and KLIA are the obvious reasons why the tax should not be the same.

Source: Bernama