By Presenna Nambiar BTIMES
| Carbon Offset Surcharge will Impact Air Asia Operation |
AIRASIA Bhd could be bent on challenging airport operator Malaysia Airports Holdings Bhd's (MAHB) airport tax hike as a means to combat its own fast-rising charges.
Checks done by Business Times showed that the gap between Malaysia Airlines and AirAsia's long haul arm AirAsia X fares is fast closing in on a few routes.
A check on fares for London in January showed the fare difference between the two airlines was less than RM1,000.
For example, on both MAS and AirAsia X fares (excluding fees and taxes) for a return trip to Paris in January showed that MAS' fare was RM1,841 while AirAsia X's fare was RM2,108 (excluding baggage and meal charges) for return.
The differentiating factor, however, was its fees and taxes. MAS' charges stood at RM1,359 while AirAsia X's charges were RM606.
The increase in fees in AirAsia X are from a RM80 (return) carbon offset surcharge to be implemented in 2012.
It is believed that this charge is connected to the European Union Emissions Trading scheme, which comes into force January 1 2012.
The ruling requires airlines to pay up for carbon emissions, which have not been accounted for, in its air space.
"It could be because of all these charges that are coming up now. I guess they don't want to add on any other charges that don't actually help ease their own costs," an analyst who declined to be named said.
On claims that MAHB was profiteering from passengers, another analyst pointed out that a quick calculation of profit against number of passengers handled would show which company profits more from passengers.
A check showed that according to 2010 profit before tax (PBT) figures, AirAsia makes twice more money from passengers than MAHB.
MAHB made RM445 million in PBT for 2010, while AirAsia earned some RM1.1 billion in PBT.
According to this, AirAsia made RM42 per passenger, while MAHB earned RM15 per passenger. Only half of the 57.8 million passengers handled by MAHB are taken into account as it only collects airport tax one way.
"AirAsia is not being inconsistent to itself. Before it complies it's always visibly shown how unhappy it is. I think at the end of the day however, it will follow the letter of law and pay
Checks done by Business Times showed that the gap between Malaysia Airlines and AirAsia's long haul arm AirAsia X fares is fast closing in on a few routes.
A check on fares for London in January showed the fare difference between the two airlines was less than RM1,000.
For example, on both MAS and AirAsia X fares (excluding fees and taxes) for a return trip to Paris in January showed that MAS' fare was RM1,841 while AirAsia X's fare was RM2,108 (excluding baggage and meal charges) for return.
The differentiating factor, however, was its fees and taxes. MAS' charges stood at RM1,359 while AirAsia X's charges were RM606.
The increase in fees in AirAsia X are from a RM80 (return) carbon offset surcharge to be implemented in 2012.
It is believed that this charge is connected to the European Union Emissions Trading scheme, which comes into force January 1 2012.
The ruling requires airlines to pay up for carbon emissions, which have not been accounted for, in its air space.
"It could be because of all these charges that are coming up now. I guess they don't want to add on any other charges that don't actually help ease their own costs," an analyst who declined to be named said.
On claims that MAHB was profiteering from passengers, another analyst pointed out that a quick calculation of profit against number of passengers handled would show which company profits more from passengers.
A check showed that according to 2010 profit before tax (PBT) figures, AirAsia makes twice more money from passengers than MAHB.
MAHB made RM445 million in PBT for 2010, while AirAsia earned some RM1.1 billion in PBT.
According to this, AirAsia made RM42 per passenger, while MAHB earned RM15 per passenger. Only half of the 57.8 million passengers handled by MAHB are taken into account as it only collects airport tax one way.
"AirAsia is not being inconsistent to itself. Before it complies it's always visibly shown how unhappy it is. I think at the end of the day however, it will follow the letter of law and pay
AirAsia Berhad (AirAsia) is engaged in the provision of air transportation services. As of December 31, 2010, the Company operated a fleet of 90 aircraft and flies to more than 65 destinations in 18 countries from hubs in Malaysia, Thailand and Indonesia. In 2011, the Company had added Chiang Mai and Medan as new hubs in Thailand and Indonesia, respectively. Its subsidiaries are AA International Ltd, which is an investment holding company; AirAsia Go Holiday Sdn Bhd, which is engaged in tour operating business; AirAsia (Mauritius) Limited, which is engaged in providing aircraft leasing facilities to Thai AirAsia Co. Ltd; Airspace Communications Sdn Bhd, which is a media owner with publishing division; Aras Sejagat Sdn Bhd, which is a special purpose vehicle for financing arrangements required by the Company, and Asia Air Limited, which is engaged in the provision and promotion of AirAsia Berhad’s in-flight food to the European market. up if they have to," Maybank Investment Bank Bhd analyst Mohshin Aziz told Business Times.Officers and directors
Anthony Francis FernandesGroup Chief Executive Officer, DirectorKamaruddin Bin MeranunGroup Deputy Chief Executive Officer, DirectorTassapon BijleveldChief Executive Officer - Thai AirAsiaMr. DharmadiChief Executive Officer - Indonesia AirAsiaBo LingamChief of Operations and PlanningJasmindar KaurCompany SecretaryAbdul Aziz Bin Abu BakarNon-Executive Chairman of the BoardMohamed Azman Bin YahyahNon-Independent Non-Executive DirectorConor McCarthyNon-Executive DirectorMohamed Khadar Bin MericanIndependent Non-Executive DirectorAddress
Lot No. N1 Level 4 Main Terminal Building Kuala Lumpur Intl. Airport
Sepang, 64000
Malaysia
+60-3-86604333 (Phone)
+60-3-87751100 (Fax)Website links
http://www.airasia.com
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