Regulatory body needed for airline industry, says Fernandes

STAR, Tuesday January 25, 2011

PETALING JAYA: It is time to set up an independent regulatory body to guide the airline industry’s development, said AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes.

He said a body akin to the Malaysia Communications and Multimedia Commission (MCMC) was needed to help the airline industry grow.

“An independent regulator is needed to decide on what is best for the Malaysian airline industry,” Fernandes said when contacted in Bhutan.

He said the body should also decide on standards for best practices in the industry to ensure that Malaysia remained competitive as a hub for the region.

Fernandes added that the regulator should comprise aviation experts and captains of the tourism and banking industries.

On the new KLIA2 to be completed in October 2012, Fernandes said AirAsia would move in only when the terminal is deemed “operationally safe.”

He also urged Malaysia Airports Berhad (MAB) to maintain aiport taxes for low-cost carriers at RM6 and RM25 for domestic and international passengers respectively.

Transport Minister Datuk Seri Kong Cho Ha, at a press conference earlier, said the present LCCT was running at over-capacity, having handled 15.3 million passengers last year.

“They (low-cost carriers) have to move. The current LCCT was only a temporary LCCT.

“We also need it as a cargo terminal. KLIA2 will be a much nicer terminal than the current LCCT,” Kong said after witnessing the transfer of a new flight inspection system (FIS) from local contractor Systematic
Aviation Services Sdn Bhd to the Department of Civil Aviation yesterday.

Toll abolished on one stretch, no rates hike on two highways

STAR, January 29, 2011

PUTRAJAYA: Toll for the Salak to Taman Connaught stretch of the East-West Link Expressway is set to be abolished by May, Datuk Seri Najib Tun Razak announced.

The Prime Minister also announced that the toll rates for the Kuala Lumpur-Karak Expressway and East Coast Expressway Phase One would not be increased for the next five years.

He said the decisions were made following a review of transportation costs, including restructuring the toll charges and to ease the people’s burden.

He also added that no compensation would be paid to the concessionaires of the three highways.
“In line with the 1Malaysia spirit, People First, Performance Now, I have asked toll concessionaires to carry out a review of the respective toll charges to help the Government prosper the country and lessen the burden of the people.

“Taking up the Government’s call, two corporate figures who are also major shareholders of a toll concessionaire, came forward with a toll restructuring proposal through the acquisition of assets, which will benefit the people,” he told a press conference at his office here yesterday.

Also present was Works Minister Datuk Shaziman Abu Mansor.

Najib said the Kuala Lumpur-Karak and East Coast Phase One expressways were owned by the two corporate figures, adding that he had also asked for the concession period not to be extended.
“The suggestion to acquire the concessionaire’s assets brought about the termination of the East-West Link
Expressway concession ahead of its original 2018 expiry date.

“This means that expressway users will not have to pay toll anymore and its implementation date will begin once the documentation process is completed, expected in May 2011,” he said.

“I am also calling on other toll concessionaires to emulate these initiatives for the benefit of the people,” he said.

The concession of the East-West Link Expressway is held by Metramac Corporation Sdn Bhd.

On whether the initiatives would also be extended to other highways, including the major North-South Expressway, he said the matter was under consideration.

“Let’s do it one by one. I have got more good announcements,” he said.

Later, Najib flew to Kota Kinabalu and met Sabah Barisan Nasional leaders for an hour after arriving in the state capital for a two-day visit.

He then launched the 7ha Perdana Park at Tanjung Aru, developed and managed by state water concessionaire Timatch Sdn Bhd.

Najib also witnessed the signing of a master collaboration agreement between Singapore-based Parkway Health and state-affiliated firm Jesselton Wellness Sdn Bhd to set up the Kota Kinabalu Gleneagles Medical Centre costing some RM200mil.

The prime minister then flew to Tawau where he spent the night before his scheduled visit to Sabah’s pristine Maliau Basin today.