A REVIEW of aeronautical charges, including the passenger service charge (PSC), is likely to see different rates at other airports compared with the main hub at KLIA, a Malaysian Aviation Commission (Mavcom) spokesman said.

There are three proposals and Malaysia Airports Holdings Bhd (MAHB) is said to favour the one that will result in lower PSC rates for other airports compared with KLIA.

Mavcom is in the midst of reviewing all aeronautical charges with the aim of enforcing them in January 2020. The results of the review will first be announced around October. 

“The commission is working towards different PSC rates for airports based on their size, service levels and facilities,” the spokesman told The Malaysian Insight.

Mavcom has been slammed by budget carrier AirAsia for equalising PSC rates at low-cost carrier terminal klia2 with KLIA.

Passengers to non-Asean international destinations are charged RM73 but until recently, AirAsia had been collecting only RM50 on grounds that services and facilities at the klia2 are sub-standard compared with KLIA.

After a suit by MAHB against the budget airlines and a court ruling in July, AirAsia began charging the full PSC rate of RM73 earlier this month.

Prime Minister Dr Mahathir Mohamad also said recently the PSC charges might be reviewed.

Mavcom is responsible for determining airport aeronautical charges, including the PSC, aircraft landing and parking fees, as per Section 46 of the Malaysian Aviation Commission Act 2015.

It equalised the PSC rates in 2016, which took effect on January 1, 2017, and again last year, prompting AirAsia’s refusal to collect the full PSC rate of RM73 for non-Asean international flights.

The Mavcom spokesman said it has been engaging various stakeholders, including ministries, over the last two years as part of an ongoing review of aeronautical charges for airports in Malaysia.

Three options

To set different PSC rates for airports, an internationally accepted methodology known as the regulatory asset base (RAB) framework will be applied, the spokesman added.

The framework takes into account airport funding to set airport charges. 

There are three options on new PSC rates in the consultation paper.

The first entails equalising PSC rates for all international flights. No distinction will be made whether a flight is destined for an Asean country or beyond.

The domestic PSC for all airports will be unchanged at RM11 per passenger. 

For the international PSC, it was proposed that KLIA’s be lowered to RM62, while the rate at the Kuching International Airport (KCH) be set at RM67 and the Penang International Airport (PEN), RM114.

The second option, which the spokesman said is the one preferred by MAHB, will see the domestic PSC for all airports increased to RM14 per passenger.

It also treats international flights, whether to Asean countries or beyond, the same. International PSC rates will remain nearly the same with only small differences between airports.

International passengers departing from KLIA will be charged RM60, while those flying out of Penang, RM59.

International departures from the Kota Kinabalu International Airport, Sultan Abdul Aziz Shah Airport in Subang, Langkawi International Airport and Kuching International Airport are to be charged RM55 under the second proposal.

For smaller airports, passengers on international flights out of Miri, Sibu and other airports will be charged RM35.

The third option also includes standardising the domestic PSC at RM14 for all airports.

But it will distinguish between Asean-bound flights from international flights to destinations beyond the region.

For Asean, RM38 will be charged for flights out of KLIA, Penang (RM56) and Kota Kinabalu and Kuching (RM53).

Asean flights from Langkawi, Subang, Miri and Sibu will be charged RM38 and other airports (RM35).

For other international flights, the fee is RM80 for those departing from KLIA, Penang and Kota Kinabalu.

Those departing from Langkawi and Subang will be charged RM73, from Miri and Sibu (RM38) and other airports (RM35).

The proposed PSC rates are in a consultation paper.

“Our most recent consultation process, involving the publication of a consultation paper on June 18, 2019, elicited feedback from airports, airlines, international industry associations, investors, financial institutions, rating agencies and other stakeholders on our development of the framework,” the spokesman said.

“This consultation paper followed two earlier consultation papers published by Mavcom in February 2018 and October 2018.”

MAHB is leaning towards option 2 as that is the only one which results in tariffs for other airports being lower than KLIA. – August 27, 2019.