Airport Tax Will Increase

[Mike P 0]

Grab your trips and last cheap fare for the last at MITM Fair at Midvalley!

[Mike P 0]

Seems like after comparing the airport taxes, HKG & KUL are almost the same, while SIN and BKK are higher a bit.

[alberttky 0]

PUTRAJAYA: AirAsia X, the long-haul budget airline subsidiary of Tune Group, has fired one salvo after another at Malaysia Airports Holdings Berhad (MAHB).

 

Its chief executive officer Azran Osman-Rani aired his grievances against the airport operator via Twitter yesterday.

 

What irked him most was the delay in the construction of the new budget terminal at the KL International Airport, KLIA 2, and the recent hike in airport fees imposed by MAHB.

 

“Would be interesting to sponsor (Powerman Malaysia Duathlon) if 2012 edition held at KLIA. But too bad MAHB will miss construction deadline for KLIA2.

 

“If the Government allowed AirAsia/Sime Darby to build new low-cost carrier terminal at Labu, it would have been ready by now, no public funds used, and lower charges,” he said, revisiting the old controversy of the Government's earlier nod for AirAsia to build their own terminal in Labu before U-turning in 2009 and ordering MAHB to build the terminal instead.

 

“MAHB promised the prime minister they could deliver the same.

 

“Now, delayed construction, public funds cost overruns, and they're hiking fees! Way to go, GLC,” he said.

 

MAHB had recently announced the International Passenger Service Charge (PSC) and Aircraft Landing and Parking Charges.

 

The PSC has been raised by 28% from RM25 to RM32 for international passengers departing from LCCT-KLIA and the Terminal 2 Kota Kinabalu.

 

This has been lambasted by Azran in his series of hard-hitting tweets, saying that there was no consultation in MAHB's decision.

 

“The critical failure of this knee-jerk policy decision to reinstate airport fee monopolistic increase, is that there is no consultation or analysis.

 

“We keep taking two steps forward, and get dragged two steps backward. Macam mana nak maju? (How do we progress?)” he asked.

 

Asked by one of his Twitter followers what he thought was the reason behind the fee increase, Azran had only one word in response: “Tamak! (Greed!)”

 

When contacted by The Star yesterday, MAHB declined to comment.

 

http://thestar.com.my/news/story.asp?file=/2011/10/30/nation/9802237&sec=nation

[Mohd Firdaus Bolong 0]

PUTRAJAYA: AirAsia X, the long-haul budget airline subsidiary of Tune Group, has fired one salvo after another at Malaysia Airports Holdings Berhad (MAHB).

 

.

 

“We keep taking two steps forward, and get dragged two steps backward. Macam mana nak maju? (How do we progress?)” he asked.

 

Asked by one of his Twitter followers what he thought was the reason behind the fee increase, Azran had only one word in response: “Tamak! (Greed!)”

 

 

http://thestar.com.my/news/story.asp?file=/2011/10/30/nation/9802237&sec=nation

 

How do we progress?? --- meaning? the AK sake or the industry's sake..

Tamak! -- bit ironic..they didn't want to use the KLIA because they wanted to maximise their profit..had they wanted to use KLIA then there'll be no problem in airports,LCCT whatsoever..

[flee 5]

AirAsia X is feeling the heat, with JetStar and several new LCCs (including SQs) coming up soon. They are probably very worried now because Malaysia does not have the infrastructure (in terms of quality, quantity and cost) to support their fight with these other world class competitors.

 

Perhaps, AirAsia X should look for a second hub outside Malaysia. BKK or CGK might be quite appealing...

[Mike P 0]

AirAsia X is feeling the heat, with JetStar and several new LCCs (including SQs) coming up soon. They are probably very worried now because Malaysia does not have the infrastructure (in terms of quality, quantity and cost) to support their fight with these other world class competitors.

 

Perhaps, AirAsia X should look for a second hub outside Malaysia. BKK or CGK might be quite appealing...

 

Let;s see who's the big winner. I would choose JQ over D7 because JQ has better and wider seats and the meals are also better.

[Cheng Long 0]

Azran is getting all worked up and personal.. I probably agree with Azran except last time Air Asia collected airport tax from passengers on behalf of the airport, die die refused to hand the money over, in the end got some special discounts instead of interest penalty.. So who is more tamak?

[Waiping 12]

Maybe AK/D7 feels that they could really force MAHB to do things their way. Not sure they would be able to pressure anything from Indonesia or Thai authorities. You know, the Malaysian way where the rich and powerful pressure for things to go their way.

[flee 5]

Azran is getting all worked up and personal.. I probably agree with Azran except last time Air Asia collected airport tax from passengers on behalf of the airport, die die refused to hand the money over, in the end got some special discounts instead of interest penalty.. So who is more tamak?

I think it is AirAsia who witheld the payment because they alleged that MAHB had overcharged them. Once the problem was cleared and the overcharging removed, all the outstanding taxes were paid.

 

If you are a taxpayer, you will know that it is easy to pay tax but difficult to get refunds for overpayment of taxes. I guess AK was just trying to ensure that everything is correctly calculated before they pay it over.

 

I am not surprised if MAHB made some error as AirAsia handles huge amounts of passengers.

 

This was Azran's answer:

AirAsia X that I represent has NEVER owed or have any unpaid amounts due to MAHB.

 

Another report: http://themalaysianreserve.com/main/index.php?option=com_content&view=article&id=659:airasia-settles-outstanding-airport-charges-with-mahb&catid=36:corporate-malaysia&Itemid=120

AirAsia Bhd has settled its outstanding airport charges with Malaysian Airport Holdings Bhd (MAHB), a matter that was raised by certain quarters when the lowcost carrier entered into a share swap with national airline Malaysian Airline System Bhd (MAS).

 

MAHB chief financial officer Faizal Mansor said the AirAsia "no longer" owes it money.

 

"AirAsia is a good paymaster," he told The Malaysian Reserve when contacted last Friday.....

[flee 5]

Maybe AK/D7 feels that they could really force MAHB to do things their way. Not sure they would be able to pressure anything from Indonesia or Thai authorities. You know, the Malaysian way where the rich and powerful pressure for things to go their way.

They tried to get Rafidah to do that, didn't they?

 

I think Azran is just so pissed off because MAHB did not deliver the goods as promised. The Labu airport would have been ready this year if it wasn't for the GLC blocking its construction. MAHB are late with the new LCCT. To add insult to injury, the MAHB now wants to charge more landing/parking fees as well as airport tax. This will definitely increase costs for travellers and blunt KUL's competiveness as a hub.

 

D7 postponed delivery of 6 Airbus A333s this year - imagine how many additional routes/frequencies they will be flying now had the new airport been ready and the new planes are delivered. I guess this is what he meant by progress. D7's growth has been stunted because of MAHB's inefficiencies. It also delays their plans for the IPO. I guess this is what he is not happy about and caused him to speak up.

[Mike P 0]

How inefficient with the government's indecisiveness.

[flee 5]

Well the govt. is very good at snatching defeat from the jaws of victory! We have a world champion in the AirAsia group and the govt. and GLCs are now scoring own goals. I won't be surprised if the AirAsia will stop investing in Malaysia and focus more on their overseas affiliates like AirAsia Japan and AirAsia Philippines.

 

Since AirAsia X has mostly foreign ownership, they might even consider shifting their HQ overseas so that they can become more competitive.

[Mike P 0]

Well the govt. is very good at snatching defeat from the jaws of victory! We have a world champion in the AirAsia group and the govt. and GLCs are now scoring own goals. I won't be surprised if the AirAsia will stop investing in Malaysia and focus more on their overseas affiliates like AirAsia Japan and AirAsia Philippines.

 

Since AirAsia X has mostly foreign ownership, they might even consider shifting their HQ overseas so that they can become more competitive.

 

AirAsia X is driving at 100KM/H while the government is driving at 50KM/H.. no doubt.

[flee 5]

Well whatever it is, they had better buck up.

 

SQ's Scoot is now up and if they don't buck up, KLIA will lose its status as the LCC hub of SE Asia! D7 will definitely have to take countermeasures against the competition, with or without MAHB's co-operation!

[alberttky 0]

Well whatever it is, they had better buck up.

 

SQ's Scoot is now up and if they don't buck up, KLIA will lose its status as the LCC hub of SE Asia! D7 will definitely have to take countermeasures against the competition, with or without MAHB's co-operation!

 

What's the likelihood of D7 setting up a base outside KLIA?

[Waiping 12]

D7 can continue to have their HQ here but maintain an even stronger presence and business elsewhere. Since local policies do not allow them to grow as rapidly as they want they should really grow elsewhere. I have always thought that D7 should setup a sizable operation in SIN. There is no point in barking at the MAHB tree. They have been barking and barking and honestly I am amaze that they have time to do that. They are still doing it!

[flee 5]

Yes, but with Scoot now in SIN, it will be tougher. So they might want to consider fast growing (but overcrowded airport) CGK or BKK.

 

The reason why they hung around in KLIA is because they connect into AKs network. Before they move to BKK or CGK, they need to first grow FD and/or QZ to provide the connections.

[Mike P 0]

Remember the time when SG Government blocked AK's operation in SIN? So how high is the possibility can D7 secure a place in SIN? Especially with the upcoming Scoot? SQ has already intended to block RedQ's operation in SIN, too. I would say if SQ has already had that intention after QF announced to choose either to base in KUL or SIN, SQ should have expressed their concern earlier.

[Mike P 0]

Yes, but with Scoot now in SIN, it will be tougher. So they might want to consider fast growing (but overcrowded airport) CGK or BKK.

 

The reason why they hung around in KLIA is because they connect into AKs network. Before they move to BKK or CGK, they need to first grow FD and/or QZ to provide the connections.

 

Seriously, though this is non-related to the topic in this thread. I really not sure what is SIA doing. It's lucky that SIN is big business global hub. I mean in terms of branding and network, SIA's LCC might be far worse than AirAsia. At least AirAsia integrates all the domestic, short, medium, long haul destinations. While Scoot is to serve long haul, Tiger is to serve short haul... oh well... If I were SIA, I might exploit on the same brand, Tiger. At least Tiger has already positioned itself in Australian market.

[alberttky 0]

If I were SIA, I might exploit on the same brand, Tiger. At least Tiger has already positioned itself in Australian market.

 

The Tiger name STINKS! That's why they set up a new company.

[Mohd Suhaimi Fariz 2]

Seriously, though this is non-related to the topic in this thread. I really not sure what is SIA doing. It's lucky that SIN is big business global hub. I mean in terms of branding and network, SIA's LCC might be far worse than AirAsia. At least AirAsia integrates all the domestic, short, medium, long haul destinations. While Scoot is to serve long haul, Tiger is to serve short haul... oh well... If I were SIA, I might exploit on the same brand, Tiger. At least Tiger has already positioned itself in Australian market.

 

Tiger's reputation is a bit iffy, what with the grounding of their planes in Australia on safety issues.

[V Wong 0]

They tried to get Rafidah to do that, didn't they?

 

I think Azran is just so pissed off because MAHB did not deliver the goods as promised. The Labu airport would have been ready this year if it wasn't for the GLC blocking its construction. MAHB are late with the new LCCT. To add insult to injury, the MAHB now wants to charge more landing/parking fees as well as airport tax. This will definitely increase costs for travellers and blunt KUL's competiveness as a hub.

 

D7 postponed delivery of 6 Airbus A333s this year - imagine how many additional routes/frequencies they will be flying now had the new airport been ready and the new planes are delivered. I guess this is what he meant by progress. D7's growth has been stunted because of MAHB's inefficiencies. It also delays their plans for the IPO. I guess this is what he is not happy about and caused him to speak up.

 

Thanks for speaking out aloud...the official unofficial Airasia spokesperson in mwings ?

[Mike P 0]

I know Tiger does not own a good reputation. But still SIA owns Tiger like 49%... they just can't leave it like that...

[Mike P 0]

Analysts expect poor third quarter for AirAsia and MAS

 

 

PETALING JAYA: Both AirAsia Bhd and Malaysia Airlines (MAS) are not expected to report significant improvements to their financial performance in the third quarter, owing to the high cost of jet fuel, according to research analysts.

 

“It should be another bad quarter for MAS. AirAsia is also not likely to see stellar results,” said a bank-backed analyst.

 

He said that while the third quarter was seasonally a better period for MAS, it would be impacted by the high cost of jet fuel and also lower demand from full-service carrier passengers against a gloomy outlook for the global economy.

 

“We foresee further capacity cuts by MAS, notably on the domestic and Asean routes, given lower demand for full service travel,” said OSK Research in a report last month.

 

Both AirAsia and MAS had noted in their second-quarter reports, via Bursa Malaysia filings, that the outlook for the second half of 2011 would be challenging due to high jet fuel cost.

 

MAS recorded a net loss of RM769mil for the first half of the year, which was more than triple its net loss of RM224.68mil a year earlier. It also attributed its RM526.68mil net loss in the second quarter to higher fuel cost.

 

MAS suffered a second-quarter loss despite its total operating revenue increasing by 8.5% year-on-year to RM3.43bil.

 

“In response to the tough operating environment, MAS is moderating its short-term capacity growth,” the carrier said in August.

 

MAS added that other measures such as the implementation of fuel surcharges and improvement of its revenue management were expected to yield some benefits in the second half of 2011 but would not be adequate to offset the impact of high jet fuel price.

 

Meanwhile, AirAsia's net profit of RM276.2mil for the first half of the year represented a 34.7% dip compared with the RM423mil net profit a year earlier.

 

AirAsia's second-quarter net profit of RM104.3mil represented a 47.6% drop year-on-year.

 

The budget carrier suffered a dip in second-quarter profit despite its revenue increasing by 15.2% year-on-year to RM1.1bil.

 

“The introduction of a fuel surcharge during the second quarter is expected to mitigate, but not fully offset, the effect of higher fuel prices during the second half of the year,” AirAsia said.

 

Affin Investment Bank said in a report that third-quarter figures for AirAsia would be flat on a quarter-on-quarter basis but higher year-on-year, based on the budget carrier's July to September operating statistics.

 

The report noted that in the third quarter, AirAsia carried 4.3 million passengers, which was 3% lower quarter-on-quarter but 7.6% higher year-on-year.

 

“AirAsia's improvement in operating statistics would be partially offset by the spike in jet fuel prices. In the third quarter, the average jet fuel price was US$125 (RM391) per barrel, some 45% higher than the US$87 (RM272) per barrel average a year earlier,” the report said.

 

It also said its 2011 passenger growth forecast of 12% to 18 million was achievable as the October to December period was seasonally the strongest quarter due to the festive and holiday season.

 

“In addition, the collaboration with MAS, coupled with the potential re-branding of Firefly as a premium short-haul carrier, will reduce the fierce competition between the two airlines, and this is supportive of demand and yield,” the report said.

 

 

http://biz.thestar.com.my/news/story.asp?file=/2011/11/3/business/9827406&sec=business

 

With jet fuel cost spike and now MAHB's decision to raise the airport tax, that's really bad news for the travellers and as well as the aviation market players.

[Cire 0]

KUALA LUMPUR: AirAsia Bhd's group chief executive officer, Tan Sri Tony Fernandes, has called off a press conference on airport tax which was scheduled later today.

 

However, he used the social media, Facebook, to vent his frustration at the issue, saying airport taxes should be lower to make them afforable to the common people.

 

"AirAsia has been fighting to make them cheaper for the common man. Airport taxes are paid by Malaysians and the passengers.

 

"The money doesn't go to AirAsia but Malaysia Airport Holdings Bhd (MAHB), he said in his Facebook today.

 

He said Malaysia Airlines and AirAsia had given Malaysian airports ideas to increase their income by attracting more airlines.

 

"Then reduce the charges," he said.

 

Tony said there were too many empty promises made by Malaysian airports and the airlines were blamed for their poor performance.

 

"AirAsia wants MAHB to come clean. The new Low-Cost Carrier Terminal (KLIA2) was supposed to be operational in June 2012 and cost RM2 billion," he said.

 

It has been reported before the cost of KLIA2, which has the capability to handle 30 million passengers, will cost more than the initial figure of RM2 billion.

 

Tony also questioned the need for a third runway at the Kuala Lumpur International Airport (KLIA).

 

"Why is KLIA building a third runway when they don't use dual mode on two runways? Heathrow has 60 million passengers with two runways.

 

"Fixing the air traffic system would have been cheaper than building another runway," he said.

 

On criticisms from four members of Parliament, Tony said they had made it very personal.

 

"Villagers could never fly before. We have worked so hard to make flying affordable and 130 million people have flown due to us," he said. -- Bernama

 

 

 

 

Read more: AirAsia chief calls off pc on airport tax - Latest - New Straits Times http://www.nst.com.my/latest/airasia-chief-calls-off-pc-on-airport-tax-1.6195#ixzz1dkHWJT9m