Deputy Transport Minister Abdul Rahim Bakri today disputed claims that budget airlines AirAsia has been given 'special privilege' with regards to the airport tax it owed Malaysian Airports Holdings Bhd (MAHB).

He was responding to a question from Wee Choo Keong (PKR-Wangsa Maju) in the Dewan Rakyat, who wanted the ministry to explain the issue.

air asia airasia aircraft Rahim said as of March 31, 2009, the local carrier paid airport tax amounting to RM111.6 million through an agreement achieved with MAHB.

"Actually, the total amount was RM132.1 million but the two parties agreed that AirAsia only needed to pay RM111.6 million after an incentive of RM25 million was given to the carrier.

"From that amount (RM25 million), RM21 million was given to Air Asia and RM4 million to AirAsiaX (long-haul flights franchise)," he added.

The deputy minister said the incentive was given in appreciation of the airline’s contribution in boosting the tourism industry.

Worried about business model

Wee also expressed concern over AirAsia's business model where tickets are offered at discounted prices months ahead of the flight schedule through the ‘deposit taking’ process.

"I am worried about the modus operandi used by AirAsia because I am scared that the money that they receive in advance is used to pay off the debts," he said.

However, Rahim said it is normal for any company including AirAsia to take deposit in advance for bookings placed by customers.

"This is a normal business model practised. This model is usually used in the housing and hotel industries.

"Most importantly, there will be liquidation if bankruptcy occurs on their side. This is not unusual because other countries practise it too," said the deputy minister.

Rahim reiterated that since its debut, AirAsia has been able to boost the tourism industry.

"Now it has brought more than 10 million passengers and managed to earn high-income. That is why MAHB wants AirAsia to keep going because this is a win-win situation," he said.