20 May 2008

Minister of Transport confirms in Parliament AirAsia owes MAB RM110 million!

The Minister of Transport has confirmed in Parliament today that AirAsia has owed Malaysia Airport Holding Berhad (MAB) RM110 million from 2002 until 31 March 2008!!!

During the Minister of Transport answering before Parliament: Wee Choo Keong [Wangsa Maju] informed Parliament that on 13 May 2008 it was untrue when the Minister of Transport said this: “With regards to the debt owed by AirAsia to Malaysia Airport Holding Bhd (MAB) the amount was RM5,443,746 and it was in the process of making payment.” Wee Choo Keong further added that the Minister of Transport was also misleading this August House when he (the Minister) said that AirAsia owed MAB the sum of about RM5.4 million and it was in the process of paying.

Wee Choo Keong [Wangsa Maju] challenged the Minister of Transport and stated that AirAsia actually owed MAB more than RM80 million, Petronas for fuel RM20 million and the Government for RM35 million for the repairs of 7 aeroplanes, which MAS took over from AirAsia when AirAsia gave up Rural Air Services (RAS). What actions will the Minister of Transport take pertaining to the said debts?

The Minister of Transport replied that MP for Wangsa Maju got the figures wrong. The Minister of Transport has confirmed in Parliament this evening that from 2002 until 31 March 2008 AirAsia owed about RM110 million to MAB for all services at all airports. The Minister went further to state that AirAsia is disputing its debt of RM110 million to MAB and this matter has been sent to the Ministry of Finance to resolve.

Wangsa Maju MP also informed Parliament that low cost carriers namely Skywest and Aloha in USA have collapsed. Low cost carrier in Hong Kong has also collapsed recently and there are four low cost carriers in India which are in trouble now.

Wangsa Maju MP also informed Parliament that AirAisia also involved in fuel hedging at about US$82 per barrel. Now oil prices per barrel has gone up more than US$120.

In the light of the above, Wangsa Maju MP asked the Minister of Finance to give an undertaking that the Government will not bail out or give any more subsidy to AirAsia if it is facing financial problems. But the Minister of Transport did not provide an answer to this undertaking.


1. How could MAB allow AirAsia to chalk up to RM110 million debt for MAB services from 2002 to 31 March 2008?

2. Since this is a private debt of RM110 million owed by AirAsia to MAB, why must this debt be referred to the Ministry of Finance?

3. Please go to the Parliamentary Page in my blog and go to Question No.: 60 on 13 May 2008 and you will see the whole question and answer on the subject matter. (Here's the link.)