PSC rate to differ according to airports — Mavcom

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KUALA LUMPUR (Aug 2): The Malaysian Aviation Commission (Mavcom) is looking into regulating a new passenger service charge (PSC) rate which will be different for each airport, said newly-appointed Executive Chairman Dr Nungsari Ahmad Radhi.

“We are reviewing the PSC (rate) and it will be based on the funding models of various airports because not all airports are profitable.

"It has already been equalised...the next stage is to differentiate by service level according to different airports," he told reporters today.

He said this after the signing of a master agreement between Malaysian Industrial Development Finance Bhd and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) on guaranteeing loans for small and medium enterprises here.

Nungsari is also the Director and Principal Officer of SJPP, a company wholly-owned by the Minister of Finance Inc.

Previously, Transport Minister Anthony Loke had ordered Mavcom to decide on the new PSC rates by January 2019.

Nungsari said Mavcom would look into the operating agreements between Malaysia Airports Holdings Bhd and the owner.

"The airports are owned by the government, so in order for us to impose differential rates for airports, the government will have to take a stand in terms of how it wants to treat the existing airports and how it wants to fund expansion," he added.

The PSC, formerly known as airport tax, is currently standardised for all airports in the country whereby RM11 is charged for domestic destinations, RM35 for ASEAN destinations and RM73 for international destinations beyond ASEAN.

Commenting on the RM1 service charge per passenger, Nungsari said it will remain in force.