Hello again.
It's a big hoo haa again in aviation sector these days.
Did you know that airport tax aka passenger service charge will soon be increased? [Well, when the posting is made, the decision has been agreed upon really]. According to Transport Minister Datuk Seri Kong Cho Ha, the operator of Malaysian airports and Malaysia Airports Holdings Bhd (MAHB) are expected to make the announcement soon. [Which they had it already too].
What kind of tax has increased actually?
Well, just for the fact for those out there, it is known as Passenger Service Charge [PSC] or Airport Tax. PSC is a form of aeronautical charges. Aeronautical charges are regulated all over the world and are different from country to country. In the case of Malaysia, it is regulated under the Malaysian Civil Aviation Regulation (MCAR) 1996.
PSC is used to cover the cost of maintaining and managing the terminal, elevators as well as the flight information system and various other facilities. It is also used to provide baggage carts and passenger information services. It is not base on flight distance as mentioned.
AirAsia group chief executive officer Tan Sri Tony Fernandes lambasted the Transport Ministry for announcing an increase in airport tax, or passenger service charge, without prior consultation with players in the industry. He said AirAsia will appeal against the hike in order to lessen the burden on passengers and to encourage more people to fly. In which we guess it is inevitable move from this corporate sector.
AirAsia group chief executive officer Tan Sri Tony Fernandes lambasted the Transport Ministry for announcing an increase in airport tax, or passenger service charge, without prior consultation with players in the industry. He said AirAsia will appeal against the hike in order to lessen the burden on passengers and to encourage more people to fly. In which we guess it is inevitable move from this corporate sector.
As for the record, passengers departing from five international airports will pay RM65 instead of RM51 from Nov 15 while passengers leaving from the low-cost carrier terminal (LCCT) at the KL International Airport and Kota Kinabalu’s Terminal 2 will pay RM32, up from RM25.
No new rates have been announced for passengers on domestic flights. Glad to hear that though and this could resuscitate the domestic tourism sector.
Yeap, it is MAHB’s right to increase airport tax, and it is not a decision of the ministry. They were given the green light to increase airport tax in 2009 but did not implement it although the rate charged is one of the lowest in the region.
Till then, see ya!!