Give us a fair hearing, Fernandes tells ministry

AirAsia CEO 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.

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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.