AirAsia to impose carbon fees starting 2025, says Loke


KUALA LUMPUR: AirAsia will begin imposing a mandatory carbon fee on all passengers starting Jan 1, 2025, says Anthony Loke.

The Transport Minister said this would mark a significant step in ensuring greater accountability and transparency in the aviation industry as Malaysia takes measures to combat carbon emissions.

Loke made the statement in a written parliamentary reply to Jerantut MP Khairil Nizam Khirudin, who had inquired about the recent amendments to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) and the current status of carbon fee collections introduced earlier this year.

“The Malaysian Aviation Commission (Mavcom) has strengthened the MACPC to provide better protection for consumers, including the imposition of carbon levies.

“The Malaysian Aviation Consumer Protection Code (Amendment) 2024 was gazetted on Aug 30, 2024 and came into effect on Sept 1, 2024,” Loke said.

The amendments include several key provisions aimed at increasing transparency and accountability for airlines.

Loke highlighted that airlines are now required to publish all-inclusive ticket prices when advertising, which must incorporate any carbon fees or charges imposed on passengers.

Moreover, he said airlines must disclose the final ticket price, inclusive of all fees and charges, before a customer completes the purchase.

Additionally, the amendments stipulate that airlines are obliged to refund fuel surcharges, taxes, fees, and government-imposed charges, including carbon fees, when applicable, he added.

To ensure transparency, Loke said Mavcom would require airlines to submit reports on carbon fee collection and usage.

At present, Malaysia Airlines has been implementing a voluntary carbon fee programme since June 2023.

However, Loke confirmed that AirAsia will make the carbon fee mandatory for all passengers starting in January 2025.

According to him, no other airlines have yet confirmed plans to introduce a mandatory carbon fee.

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