Airport Tax Will Increase

[alberttky 0]

Hike in airport passenger service fees, put travellers first

 

THE latest is that even Malaysia Airlines (MAS) is not keen to collect passenger service charges (PSC) on behalf of Malaysia Airports Holdings Bhd (MAHB). The talk earlier was that AirAsia, which has a collaboration agreement with MAS, did not want to do so either.

 

That comes as no surprise, but we, as consumers, hope that these two airlines realise that if they refuse to collect the PSC, they are causing inconvenience to travellers, people like you and me who love to travel.

 

The controversy started over the weekend when AirAsia chief Tan Sri Tony Fernandes sent an email to MAHB objecting to the increase in the PSC. Due to the higher charges, the low-cost airline is proposing that it no longer collects the PSC as the overall amount a traveller pays goes up by RM7 and the airline does not want travellers to think it has raised its fares.

 

To recap, MAHB has been asking the Government to allow the PSC rates to be raised for a long time. After nine years, the airport operator got the nod for a RM7 hike to RM32 for flights via the Low-Cost Carrier Terminal (LCCT) and Terminal 2 Kota Kinabalu. For all other departures, passengers now pay RM65 from RM51 previously. The new rates are effective Nov 15.

 

On Tuesday, Fernandes was to meet the press at noon regarding the increase but called it off. It is unclear whether he was advised against proceeding with the media conference. Instead, he decided to vent his frustration over the social media, questioning the rationale for the hike. He said travellers should not be made to pay higher charges because there was no net-value addition in service quality. He likened the LCCT to an “air-conditioned horse stable.”

 

By criticising the increase in the PSC, he is seen as an advocate for consumer protection.

 

However, this also leaves him vulnerable to the argument that some of AirAsia's recent moves are not exactly friendly to the consumers either, for example, the introduction of a RM10 charge for counter check-ins and the decision not to use aerobridges at the KLIA2, the new LCCT, in order to save cost and to enable faster turnaround of aircraft.

 

There are very few airports globally that cause inconvenience to passengers by insisting that they buy PSC coupons.

 

Fernandes has always been a bold and vocal figure in the aviation industry.

 

For several years, there had been bad blood between AirAsia and MAS, but surprisingly, in August this year, both became bedfellows after a share-swap deal. Similarly, industry insiders say it is obvious that the relationship between AirAsia and MAHB has had its rough patches.

 

In the case of the disagreement over the PSC hike, it is not about who is right and who is wrong. It's a question of how transparent each party is and how much do they really care about the travellers. Should they change their business plans to suit the travellers' needs or their own needs? Although we all know that both need to make money.

 

The decision on who collects what is in the hands of the Government. Whatever it plans to do, it should give more thought to the air passengers, especially tourists. Remember, Singapore will do anything to keep Changi busy.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/11/18/business/9927559&sec=business

[alberttky 0]

Kuala Lumpur: AirAsia Bhd co-founder and Malaysia Airlines shareholder Tan Sri Tony Fernandes has called for a more objective Transport Ministry, saying that airlines are not given a fair hearing.

 

“The secretary-general of Transport Ministry sits on the board of Malaysia Airports Holdings Bhd (MAHB) and at meetings take

the side of the airport operator, how is that fair?” he told Business Times via telephone last Friday.

 

Fernandes contends that for the benefit of Malaysia there must either be a ministry that looks after the interests of the country, or an independent regulator like Bank Negara Malaysia.

 

He said the recent increase in passenger service charges (PSC) was an example of MOT (Ministry of Transport) not giving airlines a proper hearing.

 

 

According to Fernandes, during the course of the second review on the PSC increment, AirAsia was given an hour to plead its case.

 

international PSC was initially to be implemented on September

15. This was postponed however, pending another review when airlines cried foul.

 

“My efforts are to ensure that airlines grow and for Malaysia

to grow along. The government spent about RM300 million on the current low-cost carrier terminal (LCCT) and they managed to recoup its investments in a year. That must be a record of some sort,” Fernandes said.

 

He also said the LCCT was not subject to a subsidy from the government. “The government only subsidised KLIA if PSC didn’t go up there, not in LCCT,” Fernandes said.

 

He was responding to Transport Minister Datuk Seri Kong Cho Ha’s comments last Thursday which criticised him for questioning

the government’s recent rise in international PSC.

 

He also derided AirAsia on its own multi-layered charges, saying that the airline increases charges "quietly".

 

Fernandes' response was that its charges are optional.

 

"Why should the guy who does not check in baggage have to pay the same as another that has excess? Credit card inter-change fees are high, make a direct debit payment and there is no fee," he said.

 

AirAsia charges include a convenience fee for paying via credit card and a fee for checking in over-the-counter.

 

"How can you justify an increase (in PSC) with such poor facilities in the LCCT? Ultimately, passengers will decide if the increase in PSC is fair," he said.

 

In May 2007, the country's two LCCTs saw its PSC reduced to RM6 for domestic flights and RM25 for international ones.

 

A rise in charges on November 15 will see international PSC go up to RM32.

 

 

Read more: Give us a fair hearing, Fernandes tells ministry http://www.btimes.com.my/Current_News/BTIMES/articles/20111121001244/Article/index_html#ixzz1eJB2zmTI

[Gavin Andrew David 6]

well, the MTB looks horrible and run down and so last decade.

 

I wouldn't mind the hike if we're going to see an upgrade that makes it similar or better than T3 SIN

[Mohd Azizul Ramli 2]

AK really go all out with its protest against the new airport tax charges.

 

AirAsia

IMPORTANT ANNOUNCEMENT:

 

Malaysia Airports Berhad (MAB) has enforced the increment of airport tax for all airports throughout Malaysia for all International Flights.

 

“You can increase if you improve the facilities. I don’t see the justification for it as our guests are the ones paying for it, and it costs more to fly now” – Kathleen Tan, Regional Head of Commercial

 

With compliance, the airport tax raise will be effective from this 25th November 2011 (Friday) at 00:01 hrs (GMT+8 ). All flights purchased from 25th November 2011 onwards will adhere to the new airport tax increase.

 

*Please note that the airport tax are 100% payable to Malaysia Airports Berhad. (and not to us)

 

If you feel like raising your concerns or feedback, you can write to the CEO of MAB at bashir@malaysiaairports.com.my or through the online feedback form http://www.malaysiaairports.com.my/index.php/contact-us/284.html

Habislah email account Tan Sri Bashir clogs lepas ni LOL.

[Ikman Ikreza 0]

AK really go all out with its protest against the new airport tax charges.

 

 

Habislah email account Tan Sri Bashir clogs lepas ni LOL.

 

Yup, saw on AK's FB and so this is new charges effective 25th Nov 2011.

[Waiping 12]

Seems like AK wanted to drag the consumers into this fight against MAHB.

[flee 5]

AK says it is fighting on behalf of the people.

 

But I believe they are also fighting for themselves. The increases in landing and parking charges are also very steep. The three increases will come every year, starting from 1 Jan 2012. We can expect air travel costs to rise significantly.

[flee 5]

AirAsia ignores airport tax increase

 

PETALING JAYA (Nov 25, 2011): Budget carrier AirAsia Bhd said it will continue to ignore the government-imposed airport tax hike on departing international passengers at the current low cost-carrier terminal (LCCT) in Sepang, in an act of defiance against the move.

 

The higher airport tax rate came into effect 10 days ago.

 

In a post on its Facebook fan page yesterday, AirAsia head of commercial, Jasmine Lee, said the carrier will continue to lobby the government "not in favour of the airport tax rise".

 

It blamed airport operator Malaysia Airports Holdings Bhd (MAHB) over the move to increase airport charges, saying the poor facilities at the LCCT does not justify the increase.

"Look at the queue at the immigration, space for check-in counters, quality of toilets, cleanliness of the facilities — is it really worth the increase?" Lee said.

 

In an earlier posting on Wednesday, AirAsia regional head of commercial, Kathleen Tan, said: "You (MAHB) can increase if you improve the facilities. I don't see the justification for it as our guests (passengers) are the ones paying for it, and it costs more to fly now."

 

Airlines like AirAsia collect the airport tax on behalf of MAHB.

 

MAHB had on Oct 27 received the Transport Ministry's nod to raise the airport tax on international passengers from Nov 15. Under the move, departing international passengers at the LCCT in Sepang and Terminal 2 Kota Kinabalu have to pay RM32, up RM7 from RM25 previously.

 

According to industry observers, the move by AirAsia is unprecedented.

 

"They (AirAsia) would have to sort the matter out with the Transport Ministry as any increase or decrease in airport charges are within the latter's purview, and not MAHB," said an observer.

 

"Back in 2007, the Transport Ministry was also the one who halved the airport tax at the LCCT from RM51 to RM25 for international passengers and from RM9 to RM6 for domestic passengers," he added.

 

Source

[alberttky 0]

Just curious and I know it's out of topic... Does Jasmine report to Kathleen?? Or the other way around??

[flee 5]

OT: Kathleen is Regional Head of Commercial AirAsia. Does that answer your question?

[alberttky 0]

OT: Kathleen is Regional Head of Commercial AirAsia. Does that answer your question?

 

The way the article was written may suggest that Jasmine is the head. But not to worry. Doesn't bother me anyway. Thanks.

[Cheng Long 0]

AirAsia ignores airport tax increase

 

PETALING JAYA (Nov 25, 2011): Budget carrier AirAsia Bhd said it will continue to ignore the government-imposed airport tax hike on departing international passengers at the current low cost-carrier terminal (LCCT) in Sepang, in an act of defiance against the move.

 

The higher airport tax rate came into effect 10 days ago.

 

In a post on its Facebook fan page yesterday, AirAsia head of commercial, Jasmine Lee, said the carrier will continue to lobby the government "not in favour of the airport tax rise".

 

It blamed airport operator Malaysia Airports Holdings Bhd (MAHB) over the move to increase airport charges, saying the poor facilities at the LCCT does not justify the increase.

"Look at the queue at the immigration, space for check-in counters, quality of toilets, cleanliness of the facilities — is it really worth the increase?" Lee said.

 

In an earlier posting on Wednesday, AirAsia regional head of commercial, Kathleen Tan, said: "You (MAHB) can increase if you improve the facilities. I don't see the justification for it as our guests (passengers) are the ones paying for it, and it costs more to fly now."

 

Airlines like AirAsia collect the airport tax on behalf of MAHB.

 

MAHB had on Oct 27 received the Transport Ministry's nod to raise the airport tax on international passengers from Nov 15. Under the move, departing international passengers at the LCCT in Sepang and Terminal 2 Kota Kinabalu have to pay RM32, up RM7 from RM25 previously.

 

According to industry observers, the move by AirAsia is unprecedented.

 

"They (AirAsia) would have to sort the matter out with the Transport Ministry as any increase or decrease in airport charges are within the latter's purview, and not MAHB," said an observer.

 

"Back in 2007, the Transport Ministry was also the one who halved the airport tax at the LCCT from RM51 to RM25 for international passengers and from RM9 to RM6 for domestic passengers," he added.

 

Source

 

Amazing.. Are they allowed to do that?

MAS should ignore the hike also for the same argument..

[Mohd Azizul Ramli 2]

MAS has been abiding the new airport taxes rule right on the dot beginning 00:01 on 15 November 2011. No question asked nor raised on behalf of their passengers. And they lost RM 1.2 billion for the 9 months operation in 2011.

[alberttky 0]

MAS has been abiding the new airport taxes rule right on the dot beginning 00:01 on 15 November 2011. No question asked nor raised on behalf of their passengers. And they lost RM 1.2 billion for the 9 months operation in 2011.

 

So it's a case of "it doesn't pay to be obedient!"

[Mike P 0]

I seriously won't recommend MAHB to raise the tax. Don't forget they are still trying to compete with SIN and BKK. Unlike SIN, they could raise the taxes since the demand is so high due to business. But for Malaysia, it works more on tourism sector which people seek for budget! Sigh...

[alberttky 0]

I seriously won't recommend MAHB to raise the tax. Don't forget they are still trying to compete with SIN and BKK. Unlike SIN, they could raise the taxes since the demand is so high due to business. But for Malaysia, it works more on tourism sector which people seek for budget! Sigh...

 

Changi makes more money from retail concessions so they can do without raising taxes if they want to. Just sublet more floor space for rental income. Look at Basement 2 at T3... it's a shopping mall there.

[Mike P 0]

Changi makes more money from retail concessions so they can do without raising taxes if they want to. Just sublet more floor space for rental income. Look at Basement 2 at T3... it's a shopping mall there.

 

Singapore is very convenient, not only small and accessible by MRT to Changi. Unlike KLIA... who would want to shop in KLIA?... Not unless there are really a lot of travellers... but if KLIA could be developed to a major hub, such service and convenience and comfort must be there to become a 5 stars airport.

[alberttky 0]

but if KLIA could be developed to a major hub, such service and convenience and comfort must be there to become a 5 stars airport.

 

Let's see if that ever happens, especially with the national carrier in trouble.

[Mike P 0]

Let's see if that ever happens, especially with the national carrier in trouble.

 

probably they could fix up with OW. and only if BA and QF would consider to join KLIA...

[flee 5]

Singapore is very convenient, not only small and accessible by MRT to Changi. Unlike KLIA... who would want to shop in KLIA?... Not unless there are really a lot of travellers... but if KLIA could be developed to a major hub, such service and convenience and comfort must be there to become a 5 stars airport.

MAHB must be mindful of the fact that it was AirAsia Group airlines that made KLIA into their hub. Before that, MH hardly made a dent to BKK/SIN's status of major SEA hubs.

 

So talk of KLIA being a hub (other than for AirAsia Group airlines) is still premature. We have been talking about this ever since Subang Airport was built!

[Mike P 0]

MAHB must be mindful of the fact that it was AirAsia Group airlines that made KLIA into their hub. Before that, MH hardly made a dent to BKK/SIN's status of major SEA hubs.

 

So talk of KLIA being a hub (other than for AirAsia Group airlines) is still premature. We have been talking about this ever since Subang Airport was built!

 

Yes, AK contributes a lot!

[alberttky 0]

Yes, AK contributes a lot!

 

And Tony has every reason to be upset with them.

[BC Tam 2]

So talk of KLIA being a hub (other than for AirAsia Group airlines) is still premature. We have been talking about this ever since Subang Airport was built!

In days when Subang was being built, probably the concept of a 'hub' not born yet

Nor was there necessity to be bothered with such things yet

It was more of national pride and prestige back then, and governments could still afford to pay for flying the flag overseas

[Cheng Long 0]

To be fair to MAHB or DOT (whoever raises the airport tax), they are building a whole new airport for budget airlines, effectively air asia.. so airport tax increase for LCCT is justifiable, but not KLIA.. So now we have a situation where KLIA passengers subsidizing LCCT passengers..

[flee 5]

To be fair to MAHB or DOT (whoever raises the airport tax), they are building a whole new airport for budget airlines, effectively air asia.. so airport tax increase for LCCT is justifiable, but not KLIA.. So now we have a situation where KLIA passengers subsidizing LCCT passengers..

MAHB has stated this:

“Be mindful that aeronautical charges, particularly PSC (passenger service charge), are never based on the cost of building MAHB’s airports. Airports are never built on ROI (return on investment). It’s very unlike the models they have in the UK ... the ROI for MAHB on KLIA2 is only based on non-aeronautical income,” said the official.

So this means that the airport tax amount is just a number that the DoT/MoF/MAHB throws up from time to time. It has nothing to do with the cost of building the airport!