IATA welcomes new PSC charges but services should match up

The International Air Transport Association (IATA) welcomes the passenger service charges (PSC) revision for single international departure as announced by Malaysian Aviation Commission (Mavcom).

Regional vice-president for Asia Pacific Philip Goh said transparency is needed on how cost could be recovered from airport users in an equitable manner.

“Mavcom engaged the industry in a robust consultation process prior to making a decision on changes to the charges at Malaysian airports.

“This is commendable, and a best practice that needs to be maintained, especially with the impending merger of Mavcom and Civil Aviation Authority of Malaysia (CAAM),” he told Bernama.

Nevertheless, he said the introduction of the transfer PSC could possibly impact the competitiveness of Kuala Lumpur International Airport (KLIA), especially when vying for transfer traffic in Southeast Asia that has strong aviation hubs in Bangkok, Kuala Lumpur and Singapore.

“We urge Mavcom to revisit this when the aviation service charges are next reviewed,” Philip said.

He also added that IATA look forward to continuing its engagement with Mavcom in a meaningful consultation process.

According to IATA, the transfer PSC rate in Singapore is S$6 (S$1=RM3.52) while Bangkok transit passengers are exempted.

On March 12, Mavcom said PSC revisions would apply for the First Regulatory Period (RP1) from June 1, 2024 to Dec 31, 2026. Mavcom also introduced a domestic travel PSC transfer across all airports at a rate of RM7, international travel via KLIA Terminal 1 at RM42, and international travel through KLIA Terminal 2 and other airports at RM29.

The commission recently revised the PSC rates to between RM7 and RM73 for RP1, payable by passengers departing from and transferring through Malaysia. The rates include a security charge for the provision of security services at airports.