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Malaysia Airports claiming RM36 mil in unpaid fees from AirAsia

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Don't think they will pay yet - they are filing and appeal.

As long as those customers don't subsequently complain about how crappy KLIA/T2 is and the increased reliance on retail revenue....

Customers usually vote with their feet. If fares are higher, there are fewer pax. Fewer pax means fewer flights. It results in less revenue for klia2. AirAsia might not grow and it may look elsewhere to expand. Interesting to see what will unfold...

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Customers usually vote with their feet. If fares are higher, there are fewer pax. Fewer pax means fewer flights. It results in less revenue for klia2.

Then why aren't airports like SIN or BKK ghost towns even though their taxes, fees and fares are higher than KUL's? How many of their customers voted with their feet? I don't see them having fewer pax or fewer flights.

 

AirAsia might not grow and it may look elsewhere to expand. Interesting to see what will unfold...

AirAsia has been expanding in countries with even higher departure taxes than MY (which they've even taken the liberty to unilaterally undercut). Brunei has one of the lowest taxes in the region but you don't see TF rushing to turn BWN into its megahub.

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Then why aren't airports like SIN or BKK ghost towns even though their taxes, fees and fares are higher than KUL's? How many of their customers voted with their feet? I don't see them having fewer pax or fewer flights.

 

AirAsia has been expanding in countries with even higher departure taxes than MY (which they've even taken the liberty to unilaterally undercut). Brunei has one of the lowest taxes in the region but you don't see TF rushing to turn BWN into its megahub.

Don't think your analogy is right in this debatex especially the last part regarding Brunei.

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Don't think your analogy is right in this debatex especially the last part regarding Brunei.

Is BWN not a shining example of the low taxes = low fares = bustling air hub logic?

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Honestly, the best way for this is not to lower the taxes at klia2. Let's face it, despite all the complaints, it's a new facility with up to date amenities compared to the MTB.

 

The best way, as I've advocated many times before, is to lower taxes for passengers flying from the MTB, on par with klia2.

Edited by Mohd Suhaimi Fariz

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Then why aren't airports like SIN or BKK ghost towns even though their taxes, fees and fares are higher than KUL's? How many of their customers voted with their feet? I don't see them having fewer pax or fewer flights.

 

AirAsia has been expanding in countries with even higher departure taxes than MY (which they've even taken the liberty to unilaterally undercut). Brunei has one of the lowest taxes in the region but you don't see TF rushing to turn BWN into its megahub.

Simple - they offer good value for money. So customers feel satisfied.

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AirAsia, AirAsia X to appeal against court ruling on PSC



AirAsia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun said: “AirAsia strongly believes that the court has erred and we will appeal this decision. AirAsia will apply for a stay of execution and challenge MASSB’s and its parent Malaysia Airports Holdings Bhd (MAHB’s) actions - which we maintain are a burden on all traveling Malaysians - until we exhaust all avenues available under the law.”





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AirAsia, AirAsia X to appeal against court ruling on PSC

 

AirAsia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun said: AirAsia strongly believes that the court has erred and we will appeal this decision. AirAsia will apply for a stay of execution and challenge MASSBs and its parent Malaysia Airports Holdings Bhd (MAHBs) actions - which we maintain are a burden on all traveling Malaysians - until we exhaust all avenues available under the law.

 

 

Read more at https://www.thestar.com.my/business/business-news/2019/07/19/airasia-airasia-x-to-appeal-against-court-ruling-on-psc/

Official press statement. https://newsroom.airasia.com/news/2019/7/19/high-court-ruling-over-uncollected-passenger-service-charges-at-klia2

 

One would wonder what would have happened if TF went ahead and build his own airport with Sime Darby at Labu. The moment one argues "klia is the same as klia2,if hot, even better. " I will roll my eyes.

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Official press statement. https://newsroom.airasia.com/news/2019/7/19/high-court-ruling-over-uncollected-passenger-service-charges-at-klia2

 

One would wonder what would have happened if TF went ahead and build his own airport with Sime Darby at Labu. The moment one argues "klia is the same as klia2,if hot, even better. " I will roll my eyes.

They should send more FSC planes to take off and land on runway 15/33... Its very bumpy and MAHB had to close it for repairs more often than the pair of 14/32 runways.

I doubt the govt. will give the go ahead for a new private airport. It is just a big waste of resources if klia2 becomes a white elephant.

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They should send more FSC planes to take off and land on runway 15/33... Its very bumpy and MAHB had to close it for repairs more often than the pair of 14/32 runways.

I doubt the govt. will give the go ahead for a new private airport. It is just a big waste of resources if klia2 becomes a white elephant.

 

klia2 was built to be inferior to t1.

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Simple - they offer good value for money. So customers feel satisfied.

Would you say THB750 (~RM100) for horribly long queues, poor air conditioning and dirty toilets is good value? Down south Changi's taxes and fees are ~RM150 and rising every year. You tell me if the waterfall, butterfly gardens and "free" movies are worth it.

 

AirAsia, AirAsia X to appeal against court ruling on PSC

"...which we maintain are a burden on all traveling Malaysians - until we exhaust all avenues available under the law.”

Oh, what a noble cause. I hope they'll start liberating our Singaporean, Thai and Indonesian friends from the tyranny of airport taxes too!

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Official press statement. https://newsroom.airasia.com/news/2019/7/19/high-court-ruling-over-uncollected-passenger-service-charges-at-klia2

 

One would wonder what would have happened if TF went ahead and build his own airport with Sime Darby at Labu. The moment one argues "klia is the same as klia2,if hot, even better. " I will roll my eyes.

He would probably build it halfway and then throw in the towel and who will pick it up? The government. By then he will cry no airlines should have build its own airport

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He would probably build it halfway and then throw in the towel and who will pick it up? The government. By then he will cry no airlines should have build its own airport

 

Haha. Good one!

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He would probably build it halfway and then throw in the towel and who will pick it up? The government. By then he will cry no airlines should have build its own airport

 

KUALA LUMPUR, July 18 : The Kuala Lumpur High Court has ordered low-cost carrier AirAsia to pay RM40.73 million in unpaid passenger service charges (PSC) which the airline refused to collect for six months last year.

http://www.frontdesk.com.my/index.php/2019/07/18/court-orders-airasia-to-pay-rm40-73-mln-to-ma-sepang/

 

PSC collection alone is RM80m a year is a financially feasible project. Unless cost over run substantially, otherwise anyone with funding and financial discipline could complete the project.

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Have they paid kathmandu's rs130mil overdue fees? Recalled they were asking the Nepali gov to waive it and they also terminated that route.

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KUALA LUMPUR, July 18 : The Kuala Lumpur High Court has ordered low-cost carrier AirAsia to pay RM40.73 million in unpaid passenger service charges (PSC) which the airline refused to collect for six months last year.

http://www.frontdesk.com.my/index.php/2019/07/18/court-orders-airasia-to-pay-rm40-73-mln-to-ma-sepang/

 

PSC collection alone is RM80m a year is a financially feasible project. Unless cost over run substantially, otherwise anyone with funding and financial discipline could complete the project.

They are focusing to be asset-light airline. Basically sold everything non core assets like training, ground handling, aircrafts and frequent flyer program next on the card.

 

What makes you think running own airport will be high on their agenda?

 

New airport easily costs at least MYR 4 billion at least.

 

They cant/wont even pay MYR 40 million without all the hassles. And its tax, tax goes to the government. Not MAHB. You complaint to the government lah. MAHB tolong kutip sahaja. Everyone pays.

 

Go figure.

 

Still have much respect for TF but wont be drawn into his game of diverting attention when High Court was not on their side.

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They are focusing to be asset-light airline. Basically sold everything non core assets like training, ground handling, aircrafts and frequent flyer program next on the card.

 

What makes you think running own airport will be high on their agenda?

 

New airport easily costs at least MYR 4 billion at least.

 

They cant/wont even pay MYR 40 million without all the hassles. And its tax, tax goes to the government. Not MAHB. You complaint to the government lah. MAHB tolong kutip sahaja. Everyone pays.

 

Go figure.

 

Still have much respect for TF but wont be drawn into his game of diverting attention when High Court was not on their side.

Without mahb wasteful design, airport terminal could be built at cheaper price.

 

Tf could sell the airport terminal to reit like many shopping mall developers did.

Edited by KK Lee

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A bit of trivia perhaps - if at end of day and legal process has been exhausted and judgement stands as is, would AK group then have any standing to demand for the "unpaid passenger service charges" from each and every pax they had not collected from during those six months ?

I'm guessing it won't take much to generate a 'WE TRIED OUR BEST TO SAVE YOU FROM UNFAIR CHARGES BUT OUR HANDS ARE NOW TIED, SO PLEASE NOW COUGH UP THE MONEY' publicity campaign. A winner PR wise I think - perhaps gahmen and MAHB could then be persuaded against pursuing that RM 40M debt. After all, the amount involved is probably of loose change quantum, taken in context of voters' perception in GE15 and negative PR for MAHB in short term

:)

Edited by BC Tam

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A bit of trivia perhaps - if at end of day and legal process has been exhausted and judgement stands as is, would AK group then have any standing to demand for the "unpaid passenger service charges" from each and every pax they had not collected from during those six months ?

I don't see how they can pin this on the passengers. It was, after all, their duty to collect the charges from their passengers. I don't have a legal background so I can't say for sure, but I think one or two members here might.

 

I'm guessing it won't take much to generate a 'WE TRIED OUR BEST TO SAVE YOU FROM UNFAIR CHARGES BUT OUR HANDS ARE NOW TIED, SO PLEASE NOW COUGH UP THE MONEY' publicity campaign. A winner PR wise I think - perhaps gahmen and MAHB could then be persuaded against pursuing that RM 40M debt. After all, the amount involved is probably of loose change quantum, taken in context of voters' perception in GE15 and negative PR for MAHB in short term

:)One wonders who they'd be fooling. Where was their noble spirit when they happily charged the klia2 fee? Or the ridiculous credit card charges?

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Without mahb wasteful design, airport terminal could be built at cheaper price.

 

Tf could sell the airport terminal to reit like many shopping mall developers did.

 

Without MAHB's "wasteful" design, passengers stranded by AK won't have much activities to do while they wait for their next flight, especially if they have to wait half a day to catch a flight.

 

TF's airport is only great for him, not for everyone else.

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I don't see how they can pin this on the passengers.

My thoughts above much less on whether they will be able to recover the RM 40M from pax (realistically a no brainer imo :)) with or without a legal basis to do that. But rather on whether they will go up that path, even if just for the publicity

Let us be honest, would we Malaysians be as 'enthusiastic' nowadays about the red giant if they have had to make do without the colour and antics of you know who all these while ? :D

 

 

One wonders who they'd be fooling. Where was their noble spirit when they happily charged the klia2 fee? Or the ridiculous credit card charges?

Therein is where I believe their PR strength stands out. Did we hear any hoo-hahs of protestation in the media when the klia2 fee and credit card charges came about - none or minimal ? But man ! Did we hear and read about them refusing to collect the 'excessive' taxes (for sake of the Rakyat, no less) - like it or not, this is now legal precedence in Malaysia and can be, and probably will be, cited in future :)

In the meantime, your Mat, Chin & Muthu out on the street has been fed all this time about heroic stories of you know who championing their right 'to fly' - that counts, much, much more than what we comment upon here ...... :)

Edited by BC Tam

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They cant/wont even pay MYR 40 million without all the hassles. And its tax, tax goes to the government. Not MAHB. You complaint to the government lah. MAHB tolong kutip sahaja. Everyone pays.

 

Go figure.

 

Still have much respect for TF but wont be drawn into his game of diverting attention when High Court was not on their side.

 

Actually it goes to MAHB, hence why it's called "Passenger Service Charge". I believe that "airport tax" is an outdated term still used in the press.

 

On your second point, truly agree. Tony is a hero to me for being able to start an airline from almost nothing. A dream for almost everyone here I am sure. It's just his methods sometimes screams BULLY.

 

 

Without mahb wasteful design, airport terminal could be built at cheaper price.

 

Tf could sell the airport terminal to reit like many shopping mall developers did.

 

Just an interesting fact - Many things at klia2 had to changed during construction, to cater to the whims and fancies of Tony. A very obvious case is when you exit arrivals, there is a sudden gradient down towards the shops. Why? Get in touch.. haha

 

A bit of trivia perhaps - if at end of day and legal process has been exhausted and judgement stands as is, would AK group then have any standing to demand for the "unpaid passenger service charges" from each and every pax they had not collected from during those six months ?

I'm guessing it won't take much to generate a 'WE TRIED OUR BEST TO SAVE YOU FROM UNFAIR CHARGES BUT OUR HANDS ARE NOW TIED, SO PLEASE NOW COUGH UP THE MONEY' publicity campaign. A winner PR wise I think - perhaps gahmen and MAHB could then be persuaded against pursuing that RM 40M debt. After all, the amount involved is probably of loose change quantum, taken in context of voters' perception in GE15 and negative PR for MAHB in short term

:)

 

Haha.. don't think they can do this. It will backfire for sure - just by the mere fact they would be taking their customers (and the general public) to be that dumb :D

 

Talking about negative PR, I am unsure if MAHB has been suffering more relative to AirAsia? The latter been in a bunch more pickles lately ;)

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Just an interesting fact - Many things at klia2 had to changed during construction, to cater to the whims and fancies of Tony. A very obvious case is when you exit arrivals, there is a sudden gradient down towards the shops. Why? Get in touch.. haha

 

Honestly, MAHB should go on the offensive and tell their story about the making of klia2 to show that the decision they made wasn't made in isolation. The problem is that being a GLC, people have less empathy towards MAHB compared to TF, who plays the "underdog" card well.

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Honestly, MAHB should go on the offensive and tell their story about the making of klia2 to show that the decision they made wasn't made in isolation. The problem is that being a GLC, people have less empathy towards MAHB compared to TF, who plays the "underdog" card well.

Somebody should publish a documentary about history of klia including klia2 with unbiased viewpoints from all stakeholders involved.

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