PETALING JAYA: Low-cost carrier AirAsia is set to implement a mandatory carbon fee on all passengers starting Jan 1, 2025, said Transport Minister Anthony Loke.

The move, Loke said, is in line with the country’s measures to tackle carbon emissions, and marks a significant step towards accountability and transparency in the aviation industry.

Loke’s response was made via a written parliamentary reply to Jerantut MP Khairil Nizam Khirudin (PN-PAS).

Khairil 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. This includes the implementation of carbon levies.

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

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

Additionally, he also pointed out that all airlines must disclose its final ticket price, inclusive of all fees and charges, prior to the customer completing their respective transaction.

Under the amendments, Loke pointed that airlines are obliged to refund fuel surcharges, taxes, fees, and government-imposed charges, including carbon fees, when applicable.

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

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