AirAsia reluctantly agrees to collect full passenger service charge
AirAsia has begrudgingly agreed to start collecting the full passenger service charge at low cost carrier hub klia2.
It is seemingly conceding defeat in its unwinnable battle to overturn an increase in PSC for destinations beyond the ASEAN bloc.
The budget carrier has been fighting the increase for months and was ordered to pay the charge in full after another defeat in the courts.
AirAsia had been collecting RM50 per passenger but unilaterally refused to collect the full RM73 fee after it was increased.
It had been making tenuous claims of substandard conditions at klia2 compared to facilities at the main KLIA airport which charges the same fee.
"AirAsia had refused to collect the additional RM23 from its guests to ensure air travel remains affordable for all," the airline said.
"We will collect the full RM73 PSC but we do so under strong protest."
"I believe many will agree with us that they’re not getting their money’s worth, especially when compared to the far superior facilities at KLIA," AirAsia Malaysia CEO Riad Asmat said.
The airline says the legal fight goes on, but doesn’t seem particularly confident it will be successful in overturning the fee hike.
"PSC for passengers flying beyond ASEAN has more than doubled in less than two years from RM32 to RM73. This is an arbitrary hike and we will continue to oppose it until all our legal options are exhausted," AirAsia X Malaysia CEO Benyamin Ismail said in the statement.
"We are forced to collect the additional RM23 as we cannot afford to continue subsidising our guests in the event our appeal falls through," he added.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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