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Malaysia fees risk budget hub status: AirAsia

Published on Sep 26, 2012 6:13 PM

KUALA LUMPUR (AFP) - Kuala Lumpur risks losing its status as Asia's busiest low-cost airline hub because high passenger fees could scare carriers away, Mr Tony Fernandes, head of Malaysia's AirAsia said on Wednesday.

Mr Fernandes warned regional airports such as Don Mueang in Thailand and Clark in the Philippines would soon been charging less than the RM32 (S$12.80) passenger fee at the Kuala Lumpur budget terminal used by AirAsia.

"We (Malaysia) are going to lose our competitive edge. Our costs are going up every day," he said at the launch of an AirAsia badminton training academy.

The AirAsia founder urged authorities not to "kill something that is good", as rivals scramble for customers during a global slowdown, and vie for business from China which has a huge number of passengers from the emerging middle class.

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