KUALA LUMPUR (April 15): Department of Civil Aviation (DCA)’s air navigation facilities charges (ANFC) to airline operators would be implemented in stages with a maximum one-fold increase, said Transport Minister Datuk Seri Liow Tiong Lai.

In a statement, Liow said the ministry heeded the airlines’ call on the proposed fees hike by DCA. However, after an intervention by the Ministry, the DCA will allow the payment in stages, instead of a full 10-fold hike.

“As a result of the dialogue, I organised between Department of Civil Aviation (DCA) and airline operators recently; I am pleased to announce that the fees for the ANFC to airline operators by DCA will be implemented in stages with a maximum one-fold increase,” he said.

Airlines operating out of Malaysia that were caught off-guard were up in arms, after DCA’s sudden ANFC 10-fold hike announcement, which was to take effect today.

The airlines said the `unprecedented’ increase would impact the profitability of domestic routes, and did not bode well for the air travel sector.

The rise in fees include the usage of air space, air traffic facilities and services to the air operator’s certificate (AOC).

Today, Liow said discussions with industry stakeholders led by DCA would continue, with a view towards ensuring healthy and constructive feedback that would benefit the aviation ecosystem and travellers.

“I have instructed DCA to prepare a comprehensive plan for future fees and charges that will be implemented in stages, in our effort to remain competitive with neighbouring countries.

“In fact, Malaysia’s fees and charges are among the lowest in the region,” he said.

Liow said it is important to note at this juncture that the aviation industry has been heavily subsidised by the government since 1970s.

“A point to note, the ANFC has not been revised for well over 40 years. Other charges such as the issuance of AOC or Certificate of Airworthiness have not been revised since 1996,” he said.

Liow added that these costs and much more, have continued to be subsidised by the government.

“This cannot continue and as such, the necessity for the revision in fees,” he reminded.

Furthermore, Liow said the enhancement of services and infrastructure for DCA will result in a more efficient and effective management of the nation’s aviation sector.

Additionally, it will strengthen Malaysia’s aviation standards internationally, he said.