Now Everyone Can Know Why “Minister of AirAsia” Is Unfit For Office!

Captain Loke aka Minister of AirAsia was recently seen in public together with his buddy, Tony Ferndandes. They would like us to believe that they were discussing about the weather!

YB Anthony Loke popularly known as “Captain Loke” and has since got himself promoted as the Minister of AirAsia.  He met and socialised in public with his buddy Tony Fernandes, the Number One man in AirAsia, who was embroiled in the Airbus’ bribery scandal involving payment of RM205 million to AirAsia executive 1 and 2, HERE.

The pattern of conduct that this shameless Minister of AirAsia was involved in interfering with the function of MAHB and MAVCOM by allowing himself to be led by the nose by his buddy Tony Fernandes. Ths pattern of conduct is most disturbing to say the least.

This Minister of AirAsia has shredded the norm whereby he went all out to demean Malaysian Aviation Commission(MAVCOM), which is an organisation set up by the government in 2016 through the MAVCOM Act 2016. MAVCOM was set up primarily to develop our aviation industry into an orderly manner and more importantly to protect the rights of consumers. And yet this shameless minister had on record in October 2019 said “I have disinvited MAVCOM to post cabinet committee of the Ministry of Transport” and “MAVCOM not recognised by anybody”,  HERE.

Yours truly will show the evidence that MAVCOM has been recognised internationally and the latest by the European Commission below.

No other ministers in history including MCA ministers like Chan Kong Choy, Ong Tee Keat and even the spineless Liow Tiong Lai al of whom had not gone as far as this shameless minister to openly condemn a government agency, MAVCOM, without supporting facts.

It must be noted that in 2017, Tony Fernandes had been implicated in the Rolls Royce bribery scandal of about RM13 million, HERE.

On 31 January 2020 AirAsia executives 1 and 2 were caught in the act of having received RM205 million in return for aircraft orders to Airbus. In this case, the Airbus had admitted in court documents that Airbus had paid the said bribe and the UK court had also adjudged the said bribe in its judgment, HERE.

The Glaring Examples

In July/August 2019 Tony Fernandes, went all out to condemn MAVCOM for gazetting the Passenger Service Charge (PSC) at RM73 for international travellers flying out from our airports. Tony Fernandes was campaigning for a reduction of RM23 PSC making it to be RM50. He even went as far as to refuse to implement the gazetted RM73 PSC and asking MAVCOM to reduce it to RM50. AirAsia is the only airline in Malaysia that refused to follow the law.  Of course, MAVCOM and MAHB did not go down on their knees to accommodate Tony Fernandes’ wish and both have stood firm on the RM73 PSC because that is the law.

On 30 August 2019 this shameless “Minister of AirAsia” without consulting MAVCOM and/or MAHB, he unilaterally announced that PSC for international traveller flying out from KLIA 2, which is the airport used by AirAsia, had been reduced to RM50 and that it will be effective on 1 October 2019, HERE.

He said that It was a Cabinet decision. Reliable sources had confirmed that it was not a Cabinet decision. This shameless minister merely informed the Cabinet about his desire to reduce the said PSC to RM50 PSC. It was so obvious that the said reduction of the said PSC to RM50 was just to please his buddy, Tony Fernandes.

On the same day (30 August 2019) Tony Fernandes openly defied the gazetted RM73 PSC and announced that AirAsia will launch the RM50 PSC as “Anthony Loke Special” as a mark of honour for the Minister of AirAsia, HERE.

                                                   Section 46 of MAVCOM Act, 2016

This shameless “Minister of AirAsia” was so ignorant of the law that under section 46 of the MAVCOM Act, only MAVCOM has the sole power to fix and gazette PSC rate and not him, HERE.

1 October 2019 came and gone the PSC reamains at RM73 until this day. No other airline had followed this “Syiok Sendiri” “Minister of AirAsia” except his master, Tony Fernandes.

Of course, this shameless “Minister of AirAsia” was upset and more importantly “Lost Face” so to speak that MAVCOM didn’t carry out his commands / orders to decrease the said PSC to RM50. Hence, this shameless “Minister of AirAsia” went berserk and made all kinds of negative statement against MAVCOM that he had disinvited MAVCOM to post cabinet meeting in MOT and that MAVCOM is not recognised by anyone. What an ignorant sort!

Strictly To Educate The “Syiok Sendiri” / Ignorant  “Minister of AirAsia” On The Status Of MAVCOM

Strictly for the benefit of this shameless Minister of AirAsia, MAVCOM has been recognised all over the world. MAVCOM had been invited to international conferences.  Recently MAVCOM was featured prominently in the Study done on the current level protection of air passenger rights in European Union by Steer, HERE.   Please see pages: 433, 434, 435 & 436 of the said Steer Report, which was published in January 2020.

Steer had even incorporated the full list of the role played by MAVCOM as an example how  air passenger rights have been protected in Malaysia.  We can only hope that this shameless “Minister of AirAsia” will now learn to shut his big mouth and to be thought a fool then to open it and be confirmed a fool without doubt.

Below are the pages where MAVCOM of Malaysia has been incorporated in the said Steer Report of the European Commission which was published in  January 2020.

Steer Report January 2020 cover page

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Steer Report page 434

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Steer Report page 435

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Steer Report page 436

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Minister of AirAsia’s Announcement To Abolish MAVCOM Is Against Consumer Interests

Is it strange why the Minister of AirAsia was so bent in wanting to abolish MAVCOM which has been doing a great job to protect air passengers rights.  As early as 21 October 2019 “rumour” had it that the Minister of AirAsia had told a closed door meeting with investors of his plan to abolish MAVCOM and also to bring in new players to share the airport operation pies (currently dominated by GLC MAHB). Because of his big mouth MAHB’s shares fell by 7.6% with RM1.09 billion in market capitalisation being wiped out.  It was so irresponsible of the Minister of AIrAsia to behave in such a manner. When the Minister of AirAsia was interviewed he refused to comment, HERE

Two months later on 13 December 2019, the cat was finally out of the bag, the rumour of the abolition of MAVCOM finally came true, MOT announced that MAVCOM as a regulatory body to be abolished, HERE.

The Public Must Stand Up For MAVCOM Against The Shameless Minister of AirAsia

It was due to MAVCOM’s efforts that in September 2019 AirAsia and AirAsia X were fined RM200,000.00 each  for violating the Malaysian Aviation Consumer Protection Code 2016 (MACPC).  After the implementation of MACPC, both airlines were found for the first time a to be unlawfully charging processing fees for credit / debit card transactions, HERE.

On 20 January 2020 MAVCOM slapped fine of RM2 million each on low-cost carriers AirAsia Bhd and AirAsia X Bhd and  Malaysia Airports Holdings Bhd’s subsidiary Malaysia Airports (Sepang) Sdn Bhd RM856,875 for failing to meet targets set by the former in its Airports Quality of Service framework, HERE.

The dateline for AirAsia and AirAsia X to pay the RM2 million fine each on 15 February 2020. Rumour has it that both these powerful airline have not paid the said RM2 million fine. MAVCOM will have to initiate enforcement proceedings in the coming days.

AirAsia and AirAsias X are the only two airlines that charged processing fees for credit / debit cards transactions.

After the two fines imposed against AirAsias and AirAsia X, Minister of AirAsia‘s silence was most deafening.  One would have thought that the minimum a Minister could have done was to reprimand the unscrupulous AirAsia and AirAsia X to abide by the law and stop taking passengers for a ride! But this shameless fella has no time to look after public interest but interest of his favourite airline. Lets hope that the Minister of AirAsia was not too upset with MAVCOM for taking drastic actions against his favourite two airlines. His deafening silence may have been the cause for AirAsia and AirAsia X to carry on to violate MACPC!

Yours truly wonders WHY this fella carries on to behave so shamelessly? May be MACC could shed some light on the matter!

With his above pattern of conducts, this SHAMELESS Captain Loke is unfit for office!

‘Captain’ Loke’s Disaster Flight!

Right:  ‘Captain’ Loke –  Was he in very serious discussion with his buddy Tan Sri Tony Fernandes of AirAsia on the stormy weather ahead?

‘Captain’ Loke’s Distress Call!

Was ‘Captain’ Loke in serious discussion with his buddy Tan Sri Fernandes about the weather?

Tower Controller to Captain Loke:  Did we hear calls of Mayday! Mayday! Mayday!

‘Captain’ Loke: “Yes, it’s a distress call. It’s one week to 1 October and my officers in the Ministry of Transport and I are running helter-skelter to find ways to implement the RM23 Passenger Service Charge (PSC) reduction which I had promised my good friends. 

Tower Controller: Surely as minister you can do what you want.

‘Captain Loke’: The MAHB and MAVCOM are not kowtowing to me as they claim I had blindly announced the RM23 PSC reduction just to please ….”

Tower Controller: “Please get offline. We’re sorry but these are not issues that warrant a Mayday call!

“At best, they are “Shiok Sendiri” issues brought upon by yourself.”

Jokes aside! The arrogance of power has overwhelmed Transport Minister Anthony Loke alias Captain Loke.

He thought he was super powerful and could do as he pleased in total disregard of the MAVCOM Act, 2015.

Bottomline: A review of the PSC can only be done by the Malaysian Aviation Commission (MAVCOM) and not Captain Loke.

Section 46 of MAVCOM Act

Section 46 Malaysia Aviation Commission Act, 2015

For background story please read “YB Loke Has No Power to Reduce RM23 PSC” and  “Tower To ‘Captain’ Loke: You’re Loke-ing In The Wrong Way!”.

It is most surprising that the little napoleons in MOT did not advise Captain Loke or he didn’t take their advice before he made the silly announcement on the RM23 PSC reduction that has now brought him into disrepute.

Extreme Right: ‘Captain’ Loke, the salesman, pointing to the RM99 fare.

The ‘Shiok Sendiri’ RM23 PSC Deduction

Yours truly has been informed that many airlines except one departing from KLIA-2 and other airports except KLIA are charging the full RM73 PSC. Quite rightly so because ‘Captain’ Loke’s ‘Shiok Sendiri’ RM23 PSC reduction is not lawful as it has not been gazetted by MAVCOM.  All airline under IATA will only amend their fare inclusive of the PSC rate when the PSC rate is gazetted. The ‘Captain’ Loke’s “Shiok Sendiri’ RM23 PSC reduction shall remain ‘Captain Loke’s ‘Shiok Sendiri’ Special as far as the airlines under IATA are concerned.

Of course, there is only one airline charging RM50 PSC instead of the gazetted RM73 PSC. Well, it is entitled to charge as low as RM10 or zero PSC as long as it pays the full RM73 for each passenger on international flight to MAHB.  MAHB will definitely bill this particular airline the full RM73 because it is the gazetted PSC.

The Travel Date From October 1 – 8

The airlines below are charging RM73 PSC departing from KLIA2, Penang International Airport and Kota  Kinabalu Airport. These airlines are adhering to the law.

Indigo Airlines departing from KLIA-2 to Delhi;

Qatar Airways departing from Penang to Doha;

China Southern Airlines departing from Kota Kinabalu to Guangzhou, and

Jeju Air departing from Kota Kinabalu to Seoul.

Let’s see what Captain Loke does from now on until after 1 October.

We all know him to make u-turns, like when he postponed the implementation of another half baked decision on VEP (Vehicle Entry Permit) for Singaporean car owners entering Malaysia, HERE.

 

 

Captain Loke Has No Power To Reduce RM23 PSC!

Malaysia Aviation Commission Act 2015

Updates on 5 September 2019 @ 3:30 pmAccording to the Business Times report, YB Loke’s recent announcement that PSC rates for international flights from all airports except KLIA will revert back to 2018 level starting on 1 October 2019 will cause negative outlook for Malaysian aviation sector. The RM23 PSC reduction would mean a RM200 million reduction in PSC revenue for the Government. Please read HERE.

Under section 46 of Malaysia Aviation Commission Act, 2015, the task or more appropriately the POWER to review and revise all aviation charges including PSC lies with MAVCOM and not the Minister of Transport.  The section clearly states that “MAVCOM shall regulate charges for aviation services”.

Section 46 will be discussed in the later part of this article.

Left: YB Loke, the powerful Minister of Transport in his beautiful Red tie with his good buddy, Tan Sri Tony Fernandez, CEO of AirAsia.

It is clear that the powerful Minister of Transport (MOT), YB Anthony Loke, has clearly usurped the power of MAVCOM, whose powers are clearly enshrined in the said Act.

On 3 September 2019, Minister YB Anthony Loke was absolutely right to enlighten the rakyat that Malaysia Airports Holdings Bhd (MAHB) is the operator and the Malaysian Aviation Commission (Mavcom) is the regulator, and both are government-linked entities. All assets are owned by the Government, HERE.

Beside the above two points, YB Loke’s said statement was misleading to say the least.

  • YB Loke had announced that that it was the “Cabinet’s Decision”to reduce the Passenger Service Charge (PSC) from RM73 to RM50 at all airports in Malaysia except for the KLIA effective 1 October 2019.
  • YB Loke had said that by reducing the PSC to RM50 for KLIA2 was “to balance with Departure Levy as well as encourage the growth of tourism sector”.

It would appear that YB Loke is the man who really wants equality in Malaysia.  Hence the reduction of RM23 applies to ALL airports.

May yours truly ask YB Loke this simple question:

How YB Loke arrived at the reduction of RM23 and not RM24, RM25 or RM30?  It must be noted that the RM23 reduction was what Tony Fernandez has been demanding for all along.

Is YB Loke trying to teach Malaysians that airports in Kota Bharu, Langkawi, Subang, Ipoh, Mallaca, Johor Bahru, Kuantan and Penang are of the same size and standard as KLIA2?

The answer to the above question is obviously in the negative. Why YB Loke’s fairness only accorded to travelers from KLIA2 and not other much smaller airports? Travelers from those smaller airports should be accorded with further reduction of PSC, maybe another RM23 because they don’t enjoy the luxuries of KLIA2.

When will the reduction end?  It was a silly decision to please certain entity or someone.

Loke:  Government To Determine The Rates Of PSC!

YB Loke also said:

“The government has the right to determine the rates of the passenger service charges (PSC) as it owns the airports.”

This statement is too simplistic for a Minister to make. It is just like saying that “the government owns the Parliament buildings and the land, therefore, the government could ignore the Federal Constitution,  Standing Orders and existing rules that govern Parliament”.

In fact it was the Government that enacted the MAVCOM Act 2015. Therefore, it was the Government that granted the power under section 46 of the Act to MAVCOM to solely decide on the rates of PSC and NOT the Minister of Transport.

In 2017 MAVCOM had done a thorough study on the equalisation of PSC and gazetted it into law in late 2018. Within a few months after the implementation of the RM73 PSC by the GOVERNMENT, a certain airline went on a rampage to attack MAHB and MAVCOM.

The silence on the matter by YB Loke/GOVERNMENT then was damn deafening.

Instead of telling all airlines to pay up their PSC debts and to collect PSC rates as gazetted, YB Loke saw it fit to tell the world that he would want to mediate the law suit between MAHB and AirAsia.  What a joker he is? Who is he to mediate in a law suit?

Why the double standard? Was there anything that we are not supposed to know about the special relationship between YB Loke and … ?

Improving Tourism By The Reduction of RM23 PSC?

If YB Loke really wants to improve tourism then why he didn’t protest against the introduction of Departure Levy?  Why there was also no protest against the introduction of Departure Levy by YB Loke’s favourite airline!

Quite frankly, RM23 is not going to be a determinant whether or not tourists will come to Malaysia. Let looks at the PSC in its proper prospective, reducing PSC will only encourage more Malaysians to visit other countries because it is cheaper to fly from KLIA2.  Tourists who wanted to visit Malaysia will not be deterred by the RM23 PSC.

Just look at UK, as of 1 April 2019 the PSC for its airports have increased to almost RM400 for long haul economy passengers and RM770 for long haul premium, HERE.

Yet tourists were not deterred by the increased of PSC and not a single airline protested against the exorbitant PSC.  In fact tourists visiting UK are on the increase all the times.

It is a fact that Malaysia’s PSC rates are the lowest in the region and yet our tourist numbers are stagnated.  Therefore, it is most misleading to say that reduction of RM23 PSC will see the increase of tourists to Malaysia .

The real attraction for tourists to visit  a country depends on the overall security, environment, places of attraction, history and policies of the country.  So YB Loke please stop treating Malaysians as fools.

YB Loke Said It Was a Cabinet’s Decision! He Must Be a joker!

YB Loke had said that it was a Cabinet’s decision to reduce the RM23 PSC.  Was that so?

It is a normal practice for Minister do a proper study on the pro and con, and the impact of the proposals and circulate the proposals to all Ministers to study before presenting a CABINET PAPERS to the Cabinet for discussion and approval.

It is only after the above established practices have been carried out then Cabinet’s Papers will be prepared and presented for discussion and approval by the Cabinet. Other than this, it was just a mere briefing of YB Loke’s decision to the Cabinet, no more no less.

YB Loke should provide answers to these two questions:

  • Did the Ministry of Transport (MOT) do a thorough study on the impact of the reduction of RM23 PSC to the aviation industry?
  • Did The Minister of Transport present a Cabinet Papers on the matter for discussion and approval before he made the announcement on the reduction of RM23 PSC?

We all know that there was no such Cabinet Papers on the PSC reduction have been prepared and presented to the Cabinet for decision.  YB Loke should stop dancing to the tune of his “boss” in the aviation industry.

MAVCOM Is In The Process of Revising The rate PSC

It must be noted that on 12 August 2019 MAVCOM’s executive chairman Dr Nungsari Ahmad Radhi had announced that new PSC will no longer be the same throughout the ALL airports in the country effective 1 January 2020, HERE.

From the MAVCOM’s announcement, it was crystal clear that MAVCOM  is in the process of studying the matter.  It could not have completed its study on the impact of the new PSC rates within 2 weeks from 12 August 2019.  That’s why Dr Nungsari said that the new PSC rates will be effective on 1 January 2020.

It was clear that YB Loke was in the hurry to reduce the RM23 PSC for all airports effective 1 October 2019, which decision had contradicted  MAVCOM Chairman who had said that it will differ from airport to airport depending on the facilities provided.

Quite frankly, it is not practical and difficult to evaluate facilities in monetary term from one airport to another.

Equalization of PSC is the easiest and best option implemented in most airports in the world with no protest whatsoever from airline except in Malaysia where the Ministers of Transport can’t wait to entertain the complaints from his good friend, Tony Fernandez.

MAVCOM Had Done A Comprehensive Evaluation Before Implementing Equalization Of PSC In All Airports

It must be noted that in 2017 MAVCOM had done all the studies before revising the PSC for all airports in Malaysia.  On 28 December 2017 MAVCOM had gazetted the Malaysian Aviation Commission (MAVCOM) (Aviation Service Charges) Amendment Regulations 2017 P.U (A) 427.  This regulation was to regulate the equalisation of PSC HERE.

On 17 December 2017, the then executive chairman of MAVCOM, Tan Sri Abdullah Ahmad had said that the government will be forced to fork out RM60 million in subsidies if the PSC for long haul international flights between  KLIA and KLIA2 are not equalized, HERE.

In less than two years, YB Loke was bent to reduce the said PSC to RM23, we hope that public fund will not be used to subsidise travellers departing from KLIA2 and other airports as envisaged by MAVCOM in 2017.

The said new regulation bt MAVCOM in 2017 was supposed to take effect on 1 January 2018.  It was unlawfully postponed by the then spineless Minister of Transport, YB Datuk Liow Tiong Lai,  to 1 March 2018 due to protest – you know from who la!   It was delayed until late 2018 (well after GE14) before the equalization of PSC was implemented even though it was already gazetted into law.

Within two years, YB Loke was in the big hurry to reduce the RM23 PSC effective 1 September 2019 and could not wait until 1 January 2020 as announced by MAVCOM.  Yours truly wonders WHY!

The ‘Public Defenders’ AirAsia & AirAsia X Refused To Collect Additional RM23 PSC!

AirAsia and AirAsia X had refused to collect the additional RM23, which is the same amount as announced by YB Loke for KLIA2.  The RM73 PSC was gazetted in December 2017 and only enforced by MAHB in February 2019.

MAHB filed an action to recover the combined amount of RM40.73 million in unpaid PSC which included additional PSC of RM23 and combined amount of RM792,381.74 in unpaid late payment charges.

The High Court granted a Summary Judgment, which was based on clear affidavit evidence and no arguable case, against AirAsia and AirAsia X to pay RM40.73 million to MAHB,  HERE.

It must be noted that the Judgement Sum of RM40.73 million is for the outstanding PSC owed by AirAsia and AirAsia X up to December 2018. What about the outstanding PSC owed by these two companies from 1 January 2019 onwards?

YB Loke should instruct the two companies to pay up all gazetted PSC up to now or MAHB to take actions to recover. Of course, YB Loke will play dumb on the PSC debts!

The Minister Of Transport Has NO Power To Reduce PSC unilaterally!

MAVCOM Act, 2015
MAVCOM Act 2015

Under Section 46 (1)of Malaysia Aviation Commission Act, 2015 states that MAVCOM shall regulate charges for aviation services.

Section 46 (2)of the Act :

“In carrying out its function under subsection (1), the Commission shall have the power to carry out:

  • (a) set charges, including maximum charges, or establishing the method for determination of such charges for aviation services;
  • (b) reviews of passenger service charges, landing fees, …., and other charges for aviation services at such intervals as the Commission thinks fit; and
  • (c) following such reviews, revise any charges set or method established under paragraph (a) as the commission thinks fit.

From the said Section 46 (1) and (2) of the Act, it is crystal clear that Minister of Transport has no power whatsoever to review or revise PSC.  The Minister could only direct MAVCOM to review and revise PSC and other aviation charges.

Bearing in mind section 46 of the said Act and with due respect, the obvious conclusion is that the the Minister had no doubt acted ultra vires and usurped the power of MAVCOM.

However, yours truly would like to believe that YB Loke’s action was attributed to the improper advice given by its officers!

Other Airline Should File For Judicial Review

Strictly speaking, a  full service airline or someone in the industry could file for judicial review in court to quash the Minister of Transport’s said decision to reduce the PSC from RM73 to RM50.  It is highly likely that the Court will strike down the said Minister’s decision for want of lawful power.

YB Loke should not blindly take the advice of his officers or more importantly stop pandering to the demand of certain person’s business model.  Malaysia needs an orderly and efficient aviation services.

YB Loke:  Can we have a level playing field in the aviation industry in Malaysia, PLEASE, Sir?

Enough Is Enough With Hidden Charges!

When booking airline ticket one must watch out for the add on & hidden charges imposed by a certain airline..

The Ministry of Transport and MAVCOM should investigate a certain airline which has been imposing hidden charges on the innocent travelling public.

The hidden charges are as follows:

RM20 for Booking Service Fees;

RM8 Credit Card Processing Fees;

RM4 Debit Card Processing Fees;

RM6 Direct Debit Payment Fees & etc per passenger.

The total of these hidden charges is RM38 per passenger.  Such hidden charges are against public interest and should be stopped immediately.

The Minister of Transport and Ministry of Transport should launch this investigation and not be led by the nose and dance to the tune of the airlines.

Now everyone must be cautious on the other add on by airlines when booking ticket.

The travelling public should avoid or boycott airlines that imposed hidden charges and/or add on to the cost of ticket until it stop its unscrupulous acts. Lets teach them a lesson.