AirAsia to drop processing fee in October

KUALA LUMPUR — Low-cost airline AirAsia will remove the processing fee for customers who pay either through online banking and credit card from October onwards.

“We (will) still have some charges to drive traffic to cheaper, safer and less fraudless methods. But there will be methods with no fees,” group chief executive officer Tony Fernandes said on Tuesday (July 30).

He tweeted the announcement with two hashtags — #technologyrules and #makingairfaresaffordable.

AirAsia’s processing fee starts at RM4 ($1.33) for direct debit and can go up to RM16 with UnionPay.

However, if a customer opts to make payment using AirAsia’s e-wallet application BigPay, there is no processing fee involved.

Mr Fernandes said his goal has always been to turn the country into a low-cost hub.

“Hard to fight Bangkok and Singapore in full service. Malaysian airports should really support their number customer in that dream. What do we need low cost airports and low airport tax,” he tweeted.

The airline has been fighting Malaysia Airports Holdings Bhd (MAHB) over the imposition of revised passenger service charge (PSC) of RM11 for domestic, RM35 for Asean international flights and RM73 for non-Asean international flights.

It has accused MAHB of providing sub-standard services to justify such a fee.

On Tuesday, Mr Fernandes continued his attack by saying that he has had “to fight for low cost terminal and low airport tax to allow more people to fly. Out tagline is #noweveryonecanfly. We used to have two low cost terminals. In KL and KK. No more KK. NO more KLIA. And charges keep going up and facilities keep going down.” THE MALAYSIAN INSIGHT