Economy 101: Taxing Petrol Subsidy Gone But…Part 2

Air Asia Subsidies Subsidy Airline

(More subsidy for the “one of the most profitable” budget airlines in the world but less for the people under the Government’s economic master plan? Image source: http://www.theage.com.au)

Read the earlier post here

OutSyed The Box further reveals:-

So Air Asia is getting a subsidy – for another five years. But Idris just said that subsidies are going to be removed. Macam mana pula ini? And just how much profit does Air Asia make – you may be wondering?

RM256 Million in the first quarter alone?? Wow!! There are four quarters in one year. So RM256 million x 4 = RM1.024 BILLION profit per year. And this corporate giant where the SIL and other cronies are shareholders is going to get subsidised using money that is being taken away from the rakyat? Banyak cantik.

Does Air Asia still owe hundreds of millions of Ringgit to Petronas (for fuel supply) and to Malaysian Airports Bhd (for airport handling services)? That is taxpayer’s money too.

And isn’t it also true that cronies from the regime of Slumberjack have made hundreds of millions in commission payments for all those Airbus jets that Air Asia ordered?

You know – some of those Airbuses which subsequently had to be leased out to other airlines because Air Asia did not have enough routes to fly them? Why buy so many Airbus jets in the first place? Surely if I was paid tens of millions of Ringgit as “commission” for influencing the purchase of Airbus, then I too can build a house on a cliff overlooking the Indian Ocean in Bali. It is not a difficult thing to do isn’t it?

(Catch the whole post here – there are good points raised)

As I said earlier, we are against the reduction of subsidies, not because we want the subsidy to be kept going (forever and ever) but we are against the reduction of subsidy because we know the subsidies saved will not be properly managed.

Worst still, subsidies saved may end up in the rich’s pockets

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