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Thursday, May 7, 2015

WHAT'S IN IT FOR KL-BASED WEE CHOO KEONG? Why the elegant silence on Air Asia, minister Liow?

WHAT'S IN IT FOR KL-BASED WEE CHOO KEONG? Why the elegant silence on Air Asia, minister Liow?
PETALING JAYA - In defiance of authorities, AirAsia has stayed put at Terminal 2 of the Kota Kinabalu International Airport (KKIA), instead of moving to the state-of-the-art Terminal 1, wrote Wee Choo Keong in his blog yesterday.
The former Wangsa Maju Member of Parliament said that all other eleven airlines have complied with the Economic Council’s (EC) decision that they should move from the dowdy Terminal 2 to Terminal 1, which is well-appointed and designed to enhance tourism.
The EC of 2012 and 2013 were chaired by no less a figure than Prime Minister Najib Razak.
Terminal 1 of the Kota Kinabalu International Airport cost the nation RM1.5 billion.
Despite the heavy investment in its facilities, AirAsia has been “dictating terms to Malaysia Airports Holdings Bhd (MAHB) and/or Government and has refused to move to Terminal 1 as directed.”
Wee said that the budget airline was behaving much as it did when directed to move from the Low-Cost Carrier Terminal (LCCT) to the Kuala Lumpur International Airport 2 last year.
The refusal even garnered the attention of Prime Minister Najib Razak, who chided the airline for being “arrogant”.
The burning question here, according to Wee, is why Transport Minister Liow Tiong Lai has allowed AirAsia to behave in a recalcitrant manner over a number of issues.
Initially, the budget airline asked for extra time to complete the renovation of its offices before moving to Terminal 1 of KKIA.
“It has been five months now and there is no sign of AirAsia having completed the said “renovation,” said Wee.
In strongly-worded pronouncements, Wee said that the renovations are a mere smokescreen.
The real reasons lie elsewhere.
Early last year, “AirAsia Group CEO, Tony Fernandes threatened to take his business somewhere else if the low cost airline was forced to shift to… Terminal 1,” wrote Wee.
According to Wee, Fernandes’ main complaint was that the Passenger Service Charge (PSC) for international flights had been fixed at RM65 per passenger in Terminal 1, compared with RM32 at Terminal 2.
“He raised this argument as though it was he and/or AirAsia that was paying the PSC when it is the passenger (who pays),” said Wee.
The PSC was formerly called Airport Tax.
In an earlier blog post, Wee highlighted that “AirAsia had not been making up-to-date payments of the collected PSC/Airport Tax to MAHB.”
“Reliable sources” confirmed that AirAsia’s PSC/Airport Tax debt with MAHB was a whopping RM50-plus million, he said.
However, “AirAsia dutifully paid over the PSC/Airport Tax…to the airport authorities in other countries because (otherwise)… the airline would have been denied the use of airport facilities,” wrote Wee.
Liow, who has made no move to rein Air Asia in, has also maintained a consistent silence in all these instances.
Last month, AirAsia Chief Executive Officer Aireen Omar said the airline would only move its operation to Terminal 1 when it had a “win-win agreement” with MAHB.
Currently, Air Asia is the only airline operating from Terminal 2.
It does not seem to be “taking into consideration the additional costs of having two sets of custom officers, immigration officers, police officers, aviation control officers (and) general workers to upkeep Terminal 2…”
The costs are covered by the government and MAHB — and therefore, ultimately, the rakyat.
“More importantly AirAsia has refused to consider the inconveniences caused to the travellers and tourists…”, wrote Wee.
In a caption below a picture of Liow, Wee sarcastically billed him as “Air Asia friendly Minister of Transport”.
“It is a glaring fact that Terminal 2 is badly congested and lacks adequate facilities. Terminal 1, on the other hand, has all the facilities for the convenience of tourists,” Wee wrote.
“To allow AirAsia to put its business model above the interest and convenience of tourists is not in our national interests.
The “appalling conditions at Terminal 2 and its attendant traffic problems” have even resulted in passengers missing connecting flights because of congestion.
Air Asia is forcing a high and unnecessary cost on both the rakyat and tourists.
Yet Liow remains accepting of the situation, even rationalising and defending Air Asia’s attitude.
Earlier this year, Liow said: “The talks (about moving to Terminal 1) are still ongoing and are already in the final stage.”
He went on to say that with all other airlines having made the shift, congestion at Terminal 2 would be eased, thereby making it more comfortable for the passenger.
Responding to Liow, Wee said: “It is about time that the Minister of Transport puts the welfare of the travellers and tourists above that of AirAsia.
For the sake of the country’s image and tourism in Malaysia, MAHB and Liow must take immediate actions to compel AirAsia to shift to Terminal 1 without further delay, he wrote. - FMT

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