AirAsia to scrap ticket admin fees

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Malaysia-based low cost carrier AirAsia has temporarily scrapped the administration fee charged on tickets in a bid to attract more passengers.

An AirAsia spokesman in Kuala Lumpur tells ATI that the fee ranges from MYR22.50 to MYR43 per ticket, and the move will cost the airline 400 million Malaysian ringgit ($113 million) per year.

According to AirAsia's web site, the admin fee cut will apply to tickets for flights between 1 October 2009 and 20 April 2010.

"We're doing it to stimulate demand," says the spokesman. "Passengers will only see two charges, the fare and the airport tax."

AirAsia and Malaysia Airports Holdings are embroiled in a dispute over airport taxes at Kuala Lumpur's low cost terminal.

According to Malaysia's official news agency, Bernama, AirAsia owed MYR65 million ($18.4 million) in unpaid airport taxes as of 28 February.