DCA to increase ANFC in stages – Liow

PUTRAJAYA: The Department of Civil Aviation (DCA) will increase the air navigation facility charges (ANFC) to airline operators in stages with a maximum one-fold increase, said Transport Minister Datuk Seri Liow Tiong Lai.

Liow said he had instructed DCA to prepare a comprehensive plan for future fees and charges that will be implemented in stages for the Malaysia’s aviation industry to remain competitive against neighbouring countries.

“Discussions with industry stakeholders will continue, led by DCA with a view towards ensuring healthy and constructive feedback that will benefit our aviation ecosystem and of course travellers.

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

He added the enhancement of services and infrastructure for DCA would result in a more efficient and effective management of the nation’s aviation sector, which will strengthen the aviation standards internationally.

Liow said the aviation industry had been heavily subsidised by the government since the 1970s.

He said the ANFC had not been revised for well over 40 years as well as other charges such as the issuance of Air Operators Certificate or Certificate of Airworthiness which had not been revised since 1996.

“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 said.

Previously, DCA had proposed to increase the ANFC from the current five sen per nautical mile to 50 sen for light aircraft not exceeding 2,500kg. For bigger aircraft such as Airbus A320/ A330 and Boeing B737/B777, the cost will rise to RM1-RM2.50 per nautical mile compared with 1025 sen currently, while for planes exceeding 135,000kg, the rate will increase from 30 sen to RM3 per nautical mile. - Bernama