AirAsia implements reduced passenger service charge for flights beyond ASEAN

AirAsia is implementing reduced passenger service charge (PSC) at klia2 and other international airports in Malaysia where it operates. The comes after last month's announcement by Malaysia's Minister of Transport Anthony Loke of the cabinet's decision to revise downward the PSC for passengers travelling outside of ASEAN from RM73 to RM50, effective 1 October 2019.AirAsia Group president (airlines), Bo Lingam, said the airline fully respects the cabinet's decision and will proceed with charging the reduced PSC. He added that the fact that the cabinet has chosen to reduce the applicable PSC to RM 50 demonstrates that the PSC rates set by the Malaysian Aviation Commission (MAVCOM) are maximum rates rather than fixed rates, consistent with statements made by MAVCOM. "For this reason, we believe there is no need for further gazetting of the lower PSC rate for it to become effective on 1 October 2019," he added.In August this year, AirAsia said it will be collecting the increased klia2 PSC for flight bookings levied by Malaysia Airports Holdings under protest, following a court ruling. The Kuala Lumpur High Court had dismissed AirAsia and AirAsia X’s striking out application in relation to the payment for outstanding PSC to Malaysia Airports (Sepang), a subsidiary of MAHB. The airline said previously that it will collect the additional RM23 in PSC, and the differential amount will be clearly indicated in the itemised fare as “PSC (Under Protest)”.In celebration of this move, AirAsia is also rolling out a 23-hour "Shared Prosperity" promotion on 1 October, offering a 23% discount on all seats to destinations beyond ASEAN, for immediate travel through to 9 February 2020. The “Shared Prosperity” promo will be available on airasia.com and the AirAsia mobile app.Lingam added: “We would like to thank the Government and all Malaysians for supporting our cause towards a fair PSC and making air travel affordable for everyone. This will hugely benefit not only air travellers but also the tourism industry and economy as a whole.”