MAVCOM revises PSC rates for Malaysian airports

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KUALA LUMPUR (Oct 31): The Malaysian Aviation Commission (MAVCOM) has revised the rates for passenger service charges (PSC) at Malaysian airports, effective Jan 1, 2017.

With the revision, PSC for domestic flights are fixed higher at RM11 for all airports, from previous rates of RM6 for klia2 and RM9 for KLIA and other airports.

Rates for Asean destinations are now set at RM35, compared to RM65 for KLIA, RM32 for klia2 and RM65 or RM26 previously for other airports.

Meanwhile, rates for international destinations excluding Asean countries will be raised to RM73 for KLIA and other airports, while PSC for klia2 will be RM50. Currently, the rates for KLIA, klia2 and other airports are RM65, RM32 and RM65 respectively.

"Prior to today's revision, the PSC applicable to Asean destinations from KLIA, Penang, Kota Kinabalu, Kuching, Langkawi and Johor Bahru was RM65, being equal to the PSC applicable for flights to all international destinations.

"Malaysia is the first country in ASEAN to introduce an ASEAN PSC tier and it is anticipated that this will further boost traffic to and from ASEAN nations," said MAVCOM, adding that the move is in line with the ASEAN Single Aviation Market, which aims to create a unified and single aviation market among ASEAN countries.

Moreover, the commission highlighted that klia2's PSC rates have been lower than all other airports in the country since it commenced operations in May 2014, adopting the rates of KLIA's Low Cost Carrier Terminal (LCCT).

"Given that the services, facilities and infrastructure at klia2 is more comparable to that at KLIA than the LCCT, the Commission is of the view that a continuation of lower PSC rates at klia2 could provide an unfair pricing advantage for carriers operating out of klia2," it said in a statement today.

MAVCOM added that the different rates at the two terminals gives rise to a risk that passengers in KLIA will subsidise those in klia2.

The commission said it is taking steps to fully equalise rates at a gradual basis, with a review of the PSC rates to be conducted after a year to equalise charges for international flights as well.

"MAVCOM is also of the view that in the long term, equalised PSC rates will facilitate an environment of fairer competition between airlines operating at these two terminals. Equalisation of PSC rates at KLIA and klia2 also enables Malaysia to be better aligned to international guidelines, including with the International Civil Aviation Organisation (ICAO) principle of non-discriminatory pricing at airports," said the commission.

In addition, the commission is also working on a framework that links aeronautical revenues to the satisfaction levels of customers and stakeholders, which will be introduced in 2017.

"We are very focused on a long-term and sustainable outcome. Our work on the PSC review aims to safeguard consumer interests, promote fair competition and ensure the airport operators continue to enhance their service levels. At the same time, the Commission will continue to strive for consumer protection through the MACPC," said MAVCOM executive chairman Tan Sri Abdullah Ahmad.