Equal PSC creates fairer competition for airports
KUALA LUMPUR: Malaysia Airport Holdings Bhd (MAHB) said the decision to equalise the Passenger Service Charge (PSC) rates between the Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (klia2) was to facilitate fairer competition between the airlines operating at both terminals.
In a statement yesterday, MAHB also stated that klia2 is not a lowcost airport terminal, but a second permanent terminal for KLIA that would accommodate the airport’s future growth.
MAHB was responding to a claim by DAP’s Tony Pua that the Malaysian Aviation Commission’s ( MAVCOM) decision to equalise the fees charged by klia2 as a low-cost terminal and KLIA was unreasonable, as the quality of service at klia2 was inferior when compared with KLIA.
MAHB said the standardised PSC rates also allows Malaysia to be better aligned to international guidelines, including the International Civil Aviation Organisation (ICAO) principle of non-discriminatory pricing at airports.
“In January 2017, the government made the decision to equalise the PSC for all airports in Malaysia following an extensive study on aviation charges across industry, conducted by MAVCOM,” it added.
MAHB said the PSC rate mechanism was based on a network and cross-subsidisation model to allow it to operate airports in locations that were not profitable, such
In January 2017, the government made the decision to equalise the PSC for all airports in Malaysia following an extensive study on aviation charges across industry, conducted by MAVCOM. MAHB
as those with short take-off and landing ports.
“The same model applies to all other aeronautical charges as well, such as landing and parking charges for aircraft.
“For example, the same rate applies in Lahad Datu Airport and in KLIA, regardless of the differences in the facilities,” it said.
MAHB also said that the PSC rate was independent of the cost of airport development.
“Although other countries charge passengers a separate airport development fee in addition to the PSC, this is not the case in Malaysia. Our PSC rates remain one of the cheapest in the region and in the world, even after the full equalisation,” it added. — Bernama