AirAsia still owes MAHB RM5.4million

LOW-cost carrier Air Asia Bhd still owes Malaysia Airport Holdings Bhd RM5,443,746, Transport Minister Datuk Ong Tee Keat said yesterday.“AirAsia is still in the process of paying the debt,” he said in a written reply to a question from Wee Choo Keong (PKR-Wangsa Maju) at the Dewan Rakyat sitting yesterday.Wee wanted to know if AirAsia had paid back the subsidy of RM60 million to the government and its debts to MAHB after Malaysia Airlines (MAS) took over the air services in the interiors of Sabah and Sarawak. Ong said following the rationalising of domestic air services carried out by the government in March 2006, it had given AirAsia the mandate to provide the interior air services. AirAsia subsequently appointed Fly Asia Xpress (FAX) to operate the service effective August 1, 2006.
“Considering that the service is a social obligation for the areas in Sabah and Sarawak and a non-economic service, the government therefore will bear in full the operation cost through subsidy,” he said.Whoever the operator of the service, the government will provide the full subsidy which need not be paid back, he added. — Bernama