KUALA LUMPUR: Malaysia Aviation Group (MAG) president and group chief executive officer Captain Nasaruddin A. Bakar has clarified that his call for a level playing field among airlines referred to airport charges and passenger service charges (PSC).
Nasaruddin said the charges should apply to all airlines operating in Malaysia, including foreign carriers.
“When I say charges, it could be the airport charges, the passenger service charge,” he told Business Times on the sidelines of the Association of Asia Pacific Airlines’ (AAPA) 70th Assembly of Presidents here.
His clarification follows a report on Thursday which quoted him as saying that any financial assistance provided to AirAsia Group Bhd should also be made available to other airlines to ensure fair competition.
“It has to be a fair playing field. If it’s given to one airline, it should be given to all other airlines as well,” he was quoted as saying.
The report also said Malaysia Airlines Bhd was neither seeking nor needed a government bailout, but would expect similar benefits if AirAsia received relief on airport charges.
Nasaruddin said charges at Kuala Lumpur International Airport’s Terminal 1 and Terminal 2 were slightly different because the terminals have different facilities and infrastructure.
He said all airlines operating at airports in Malaysia should be subject to the applicable charges to ensure a level playing field.
When asked whether some airlines were currently not paying these charges, Nasaruddin did not confirm nor deny it, saying that he could not speak for other airlines.
Batik Air Malaysia chief executive officer Datuk Chandran Rama Muthy supported Nasaruddin’s call for a level playing field, saying fair competition was important to the aviation industry.
“I really couldn’t agree more with Captain Nasaruddin because level playing field is very important,” he told Business Times.
Chandran said Batik Air was up to date with its financial obligations, including airport charges, income tax and Employees Provident Fund contributions, to name a few.