AirAsia said today it hopes to begin operations from a new RM100 million ringgit hub but talks are still on-going about departure tax levels.

"Hopefully by March," Kamarudin Meranum, AirAsia executive director told reporters in response to questions about the move to the new hub at Kuala Lumpur International Airport.

Kamarudin said AirAsia was pushing for a departure tax less than the current RM45 ringgit (US$12) per person.

"The rationale is it should be lower because we are using a low cost terminal. We have submitted a rate that is lower than the current price," he said.

Regional aviation hub

Malaysia Airports, which operates 39 airports in the country, recently proposed to raise the departure tax to RM65 from RM45 currently.

The construction of the terminal for low-cost airlines, which is planned to be able to handle 10 million passengers, began last year.

The government hopes the new facility will help turn Kuala Lumpur International Airport (KLIA) into a regional aviation hub.

AirAsia began operations at Subang Airport near Kuala Lumpur but moved to KLIA, about 50 kilometres south of the capital, in July 2002 in line with the government's plan to make KLIA the main gateway for Malaysia.