In the news: Airlines in focus with AirAsia removing a passenger fee to maintain its low fare stance while Indonesia’s Lion Air is charging for checked baggage, and a ‘young’ Cambodia Airways is looking to expand its network through partnership.
Airlines: AirAsia abolishes ‘klia2 fee’ for flights out of Kuala Lumpur
AirAsia passengers flying out of the budget terminal, Kuala Lumpur International Airport 2 (klia2), in Sepang, Selangor, will no longer have to pay the RM3 (US$0.70) ‘klia2 fee’ starting January 7.
According to the low cost carrier, it is scraping the fee in its ongoing effort to keep fares low.
AirAsia said the fee was introduced in May 2014 to cover the additional cost created at klia2 due to the use of mandatory facilities imposed by Malaysia Airports Holdings Berhad (MAHB), the country’s main operator of airports. These include the use of aerobridges, SITA check-in and boarding systems.
“We have said from the very beginning that klia2 is not fit for low cost carrier operations, and we will be going directly to Malaysia Airports for all the extra costs they’re costing us,” remarked AirAsia Malaysia chief executive officer, Riad Asmat.
During a recent Facebook Live session AirAsia group chief executive, Tan Sri Tony Fernandes, said klia2 did not match the airline’s continuous efforts to offer cheaper fares by lowering costs.
In response to AirAsia’s removal of the fee, MAHB issued a a statement to clarify that it had not imposed the ‘klia2 fee’ charged and collected by the low cost carrier as part of their ticket price.
“The ‘klia2 fee’ had been imposed and collected solely by AirAsia since the klia2 terminal started operations in 2014. The only charges to the passengers collected by Malaysia Airports are the passenger service charges (PSC) of RM11 for domestic departure, RM35 for international departure to Asean countries and RM73 for international departure to non-Asean countries,” read the statement.
AirAsia and MAHB are engaged in a legal battle, with the airport operator suing the airline and its low cost affiliate, AirAsia X, for outstanding airport taxes.
AirAsia and AirAsia X have refused to collect the full RM73 PSC, or airport tax, that MAHB imposed from January 1 last year, increased from RM50, for international departures to non-Asean countries from klia2. The increase standardises the tax at both KL International Airport (the main terminal) and klia2.
Instead the airlines have been collecting RM50 per pax, which was the rate prior to the increase, arguing that it was unfair for MAHB to charge the same amount as klia2 is a low cost terminal with services at a lower level compared to the full-service main terminal KLIA
Aviation: No free flight for checked baggage on Lion Air, Wings Air
(Image credit: NeoPhoto/Getty Images)
While one low cost carrier scrapes a fee for passengers, another imposes a new one – Indonesia’s largest budget carrier Lion Air starts charging for checked baggage on all domestic routes from January 8.
The new fee also applies for Lion Air’s subsidiary, Wings Air.
“Both Lion Air and Wings Air, which will enforce the new regulation until further notice, will no longer accept free checked baggage of up to 20 kilogrammes and 10 kilogrammes, respectively,” said Lion Air Group spokesman, Danang Mandala Prihantoro, in a statement.
Checked baggage exceeding 7 kilogrammes is subject to an excess baggage fee based on the rate for the day. Carry-on bags up to 7 kilogrannes in weight, as well one personal item such as a laptop bag, baby equipment, reading material, binoculars or handbag are allowed in the cabin.
Passengers are, however, not allowed to carry several items tied together or wrapped into as carry-on item, and will be subject to additional fee
The airlines advise passengers to pre-pay for checked baggage when they buy their tickets through tour and travel agencies or their websites, or up to six hours before departure.
Distribution: Cambodia Airways expands reach to travel buyers in deal with Sabre
(Image credit: Cambodia Airways)
Cambodia Airways is a relatively new entrant in Cambodia’s aviation market, launching its maiden flight from capital Phnom Penh, where it is headquartered, to Siem Reap in July last year. Its first international route was from the Cambodian capital to Macau, China.
Despite being the new kid on the block the airline has ambitious plans to transform into a major regional carrier eyeing routes to Taiwan, Hong Kong, Singapore, South Korea and Malaysia. Long haul flights to Europe and Australia are on its radar as well.
To expedite the development of new routes and markets the carrier has signed a distribution deal with Sabre.
Explained Kevin Fu, Cambodia Airways’ chief financial officer: “By selecting Sabre as our first distribution partner we are confident that we are well-positioned to execute our expansion plan, both domestically and across South-east Asia.”
Rakesh Narayanan, vice president, air line of business, Sabre Travel Network Asia Pacific, said by joining Sabre’s global travel marketplace Cambodia Airways “will now be connected to over 425,000 agents globally, expanding the airline’s reach to travel buyers around the world.”
He added that Sabre would “actively support Cambodia Airways as they move into the next phase of their strategic growth plan.”
