He said giving lower taxes to low-cost airlines had always been a government policy to support the sector.

“So I don’t see why MAS wants to question this at this moment. Unless MAS wants to fly as a low-cost carrier then they can enjoy lower airport tax.

“In the past, MAS also had a low-cost airline, so we welcome MAS to operate a low-cost airline,” he told reporters after the launch of Perlindungan & Indemniti Malaysia Sdn Bhd (P&I Malaysia), a government initiated maritime insurance for small vessels here today.

He said this in response to MAS CEO Peter Bellew’s persistent call for the government to standardise the passenger service charge at both airports.

Bellew had reportedly said that MAS was considering to move some of its flights from KL International Airport (KLIA) to klia2 following higher tax imposed at KLIA which had impacted the national carrier’s profits.

On the maritime insurance, Liow said the scheme which would be made compulsory, will not only provide necessary protection for small ships of under 300 gross tonnes at an affordable premium, but also reposition and strengthen the local maritime industry to be more competitive globally, he said.

He estimated that some 10,000 small vessels are currently not insured.

P&I Malaysia, which was incorporated in August 2015, provides marine liability for small ships for coverage up to a combined single limit of RM1.4 million.

The scheme covers liability from personal injury or loss of lives for passengers and crew, ship’s crew liability, property damage, environment pollution and wreck removal.