It’s safe to say that the AirAsia Group, the largest low-cost carrier (LCC) in Asia, and The Malaysian Aviation Commission (MAVCOM) have never had the best of relationships in the past. Yesterday, the airline hit out at MAVCOM again.
This time, it is over the aviation regulators new regulatory asset base (RAB) framework, in which AirAsia claim to consist of punitive elements that directly goes against the spirit of SPV 2030. SPV 2030 is the governments Shared Prosperity Vision to create a more equitable, high income nation by the year 2030.
“Instead of providing more opportunities for all Malaysians and reducing the cost of flying, the RAB championed by Mavcom would, in fact, keep flying out of reach of many, the opposite of what the Government is trying to achieve.
“Mavcom has consistently stressed on the equalisation of passenger service charge (PSC) between KLIA and klia2, by virtue of both terminals forming a single Kuala Lumpur International Airport or KUL. The one fact that Mavcom, and Malaysia Airports Holdings Berhad (MAHB), have refused to acknowledge and tried to camouflage all along is the vast difference in both appearance and service levels provided at these two terminals.
AirAsia Group President (Airlines) Bo Lingam
Bo also called out MAHB for criticism as well
“Under the current RAB proposition. MAHB reportedly plans to spend RM5.2 billion from 2020-2022, a sizeable portion of which will go towards the new baggage handling system and aerotrains at KLIA. Is it fair to get LCC passengers who not only are unable to enjoy these expensive facilities at KLIA but forced to put up with inhospitable conditions at klia2 to pay the same PSC rates?
“we are highly skeptical of their capability to efficiently complete this huge amount capex in this short period of time. First, there is an absence of a detailed business case to justify each capex. Second, MAHB’s historical capex spending of just RM200-RM300 million per annum does not suggest that they would be able to undertake this size of investment.
AirAsia Group President (Airlines) Bo Lingam
He goes on to direct his ire back at MAVCOM, claiming that it is their responsibility as a regulator to protect the interests of the flying public by ensuring that travelers get what they paid for. With low cost carriers holding a 60% share of the market, he feels that MAVCOM are neglecting the demand for low-cost travel by insisting on unfair charges for travellers.
Bo pointed out that AirAsia has always been a strong advocate of equality and inclusivity, which was integral to how AirAsia ran its business.
We hire a significant number of staff from the B40 segment, providing them with opportunities to pursue their passion. We have had many success stories of Allstars who made their dreams come true, such as Kugan Tangiisuran, who joined us in despatch and is now a pilot,”
“This goes for our guests as well. Our low fares have allowed millions to fly for the first time, and now at least two-thirds of Malaysians from all walks of life have flown, including an estimated 2 million people from B40 households who have benefited from special flat rate extra flights operated during festive periods.
“It is, therefore, truly disappointing to see that Mavcom does not seem to share our enthusiasm in supporting the Shared Prosperity Vision, and we call on them to work more closely with their partners, including airlines such as AirAsia, to create a fairer Malaysia.”
As you can see, AirAsia really went in on MAVCOM this time. What do you guys make of this?
