Wednesday 7 December 2011

MAHB, AirAsia on reconciliation path

KUALA LUMPUR: In a move that could fizzle out the spat between AirAsia Bhd and Malaysia Airports Holdings Bhd (MAHB) as fast as it flared up, both parties appear to be showing signs of a truce.

In response to a statement by MAHB indicating its willingness to have a Service Level Agreement (SLA) with the airline, AirAsia chief executive officer Tan Sri Tony Fernandes, who has been spewing vitriol at MAHB in recent days, tweeted his thanks to MAHB managing director Tan Sri Bashir.

The SLA, or lack thereof, is a contentious issue for AirAsia.

"Just been told by TV3 that Malaysia Airports is willing to sit down and discuss a contract and an SLA. Great news. Here's hoping. Win win for all. Great way to start our 10-year celebration. Thank you Tan Sri Bashir," he tweeted late last evening.

MAHB said it is awaiting AirAsia's proposal on the SLA for further study and consideration. AirAsia is expected to hand in a proposal this Friday.

Fernandes' tweet came minutes after MAHB issued a press statement, addressing matters raised by AirAsia at a press conference held yesterday morning.

In it, MAHB appeared to be favouring a truce, ending the statement with a wish to work together with AirAsia for the good of the country.

"We hope that with the clarifications made above and over the past week on some of the issues raised, we can now move forward and work together with our partners in ensuring the successful development of KLIA2 for the good of the country," MAHB said.

Earlier in the day, AirAsia had said it considers its relationship with MAHB as having broken down, resulting in the current spat.

AirAsia chief operating officer Bo Lingam admitted this at the press conference. Fernandes was not present at the event.

He claimed it had been a one-sided relationship, with MAHB making the decisions.

AirAsia also lamented the lack of a joint working committee, comprising of officials from both companies, for the project.

Bo said considering AirAsia's role as MAHB's main client at KLIA2, it had expected more involvement in its design and planning.

AirAsia's issues, as highlighted by the management, are the cost of KLIA2 and the possibility of it being passed on to AirAsia through increased aeronautical charges, the lack of an SLA between it and MAHB, restricted access for its aeroplanes to the terminal from Runway 2 and MAHB's decision to not accord it with a storage area for in-flight meals at the new site.

"We want to have in black and white the rates that MAHB is going to charge us at KLIA2," Bo said.

The low-cost carrier also maintained that its requirements had not contributed to the development of a much larger KLIA2.

Meanwhile, MAHB, in response to AirAsia's claims, said the weekly meetings held with AirAsia and other stakeholders served as a platform for all views and requirements to be discussed and addressed and that it would continue to engage AirAsia at the meetings.

The KLIA2 is currently 40 per cent completed.

MAHB also reiterated that the airport charges, both current and future, are regulated by the government and the mechanisms for future increases had been clearly defined in its operating agreement with the government.



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