Mavcom: Why we want RM1 levy

IT is quite typical for the aviation regulator to charge passengers a levy to finance their operation, says Malaysian Aviation Commission (Mavcom) chief operating officer Azmir Zain.

“The objective of the RM1 is to ensure financial sustainability and more importantly, the independence of this commission. One of the key success factors for Mavcom is the ability to act independently.”

Mavcom, he says, works towards ensuring that consumer complaints are managed and resolved and that their rights are addressed.

“All of this is the kind of value an air traveller in Malaysia would get from the RM1,” he says.

Mavcom plans to charge air travellers departing from Malaysian airports – except for rural air services in Sabah and Sarawak – a levy of RM1 once amendments to the law is passed. (The amendments were tabled in Parliament for first reading in August.)

While not every country’s aviation regulator charges a levy, Azmir says “many countries do so. Everytime you fly out of Changi, you have to pay S$6 (RM18).”

Mavcom, which was set up in 2016, is funded by a government grant that is meant for the first two years of its operation.

Going by the number of air travellers here, it was reported that the RM1 levy would bring in RM30mil annually for Mavcom.

He says other commissions in the country like the Malaysian Communications and Multimedia Commission impose a charge on the industry players.

“But why that model is not appropriate for aviation is because the telco industry is one that is very profitable whereas aviation in Malaysia is a recovering sector. So for us to look to charge the industry players it would add cost to them and lessen our ability to be independent of the industry players.”

Azmir says there are various models to raise funding and that Mavcom did a “great deal of study” before picking what they believe to be the most appropriate.

On why Mavcom can’t take RM1 from the Passenger Service Charge (PSC) which all passengers have to pay to the airport, Azmir says “if we take one ringgit which is the airport’s income that is almost as if we become beholden to the airport and it would lessen our independence substantially”.

(Passengers departing from a Malaysian airport pay the airport a PSC of RM11 for domestic flights, RM35 for flights to Asean countries, RM50 if they fly international from KLIA2 and RM73 from KLIA.)

For Azmir, Mavcom has made significant strides in terms of consumer protection when it launched its Malaysia Aviation Consumer Protection Code which, among others, prohibited airlines from automatically adding on optional services to a passenger’s ticket.

“We also ensured that the PSC remains the lowest in the world and we introduced a new Asean tier of RM35 which is a savings of RM30 from the previous rate for those travelling to Asean destinations.”

For him, that RM1 levy for Mavcom will allow it to continue driving initiatives that support air travellers across Malaysia and also help create a resilient industry.