Hike in klia2 tax to bail out Malaysia Airports, says MP

Updated 6 years ago · Published on 22 Dec 2017 10:25AM · 6 Comments

THE increase in passenger service charge (PSC), or airport tax, at the Kuala Lumpur International Airport 2 (klia2) is a bailout for debt-ridden Malaysia Airports Holdings Bhd, said DAP lawmaker Tony Pua.

The Malaysian Aviation Commission (Mavcom) recently announced that it had to raise the airport tax from the rates charged at the previous Low-Cost Carrier Terminal (LCCT) due to the higher cost of running more advanced operations at klia2. 

However, Pua said, the increase in airport tax is to repay debts of more than RM5 billion, which incurs more than RM250 million in interest per annum. 

“It is due to MAHB incompetence and questionable decisions which have resulted in substantially higher-than-expected maintenance cost.

“Despite klia2 commencing operations since 2013, the airport is still plagued with soil settlement or sinking problems causing constant operational inconvenience and a state of perpetual repair,” Pua said in a statement.

He said the airport’s “unnecessary grandeur in size and scale” resulting in extra-long distances for airline workers and passengers forced MAHB to build walkators throughout the terminal, adding to costs.

“MAHB was forced to retrofit poorly designed walkalators all around the terminal to ease the inconvenience. Hence, perhaps in this instance, Mavcom is indeed correct to point out that the larger airport is indeed more costly to maintain.”

As of January 1, the PSC for or all international destinations from any Malaysian airport will be RM73. It is currently RM50 for non-Asean international destinations from klia2.  

Pua said the hike from RM50 to RM73 is unacceptable as it surpassed the annual inflation rate.

“It should be remembered that the chief financial officer of MAHB has assured the Public Accounts Committee that MAHB does not need to raise the PSC above and beyond the prescribed inflation rates to ensure operational profitability. That has clearly turned out to be a lie,” said Pua.

“We will not object to a hike in PSC if it is pegged to the annual inflation rates. However, a hike amounting to 46% to RM73 per international passenger is unacceptable, especially since it is to make the rakyat pay for the follies of MAHB.”

Pua, who is DAP’s national publicity secretary, said Mavcom lied when it said klia2 was never designed as a low-cost carrier terminal nor a hybrid airport.

“There cannot be a greater lie coming from the airline industry regulator, which was born only a few years after klia2 commenced operations. 

“Klia2 was conceived and intended to service low-cost airlines. Even the official brochure on klia2 on the MAHB website site still clearly states so.

“And when the cost of the airport ballooned to RM4 billion from the original budget of RM1.7 billion, it was the Deputy Transport Minister, Aziz Kaprawi, who told both the media and Parliament in 2013 that klia2 was not merely a ‘low-cost carrier terminal’ but a ‘hybrid airport’,” said Pua.  

AirAsia Group chief executive officer Tony Fernandes said the new rates would make it harder for Malaysians to fly. – December 22, 2017.

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Comments

  • The people HAVE to pay for the incompetent decision by incompetent leaders in Bolehland. As guardians, they should be more forward thinking and have a robust plan on all the future investment involving the people's money! KLIA2 IS a LOW COST airport as it's overall standard is not much different from the Old LCCT except it's more brick and mortar plus more detail shops, period! Ok, better toilets!

    Posted 6 years ago by Crishan Veera · Reply

  • Another ketuanan melayu money making project

    Posted 6 years ago by Leslie Chan · Reply

  • Even for UMNO, this incompetence is ridiculous. Najib was involved in the fight with Air Asia who tipped the balance. You have to ask is there a Malaysia Airport Official 1??

    Posted 6 years ago by Bigjoe Lam · Reply

  • "AirAsia Group chief executive officer Tony Fernandes said the new rates would make it harder for Malaysians to fly."

    Then you cant make lot of money and the best way us is to.move your oodration to indonesia..

    Posted 6 years ago by Ujang Mohd · Reply

  • "AirAsia Group chief executive officer Tony Fernandes said the new rates would make it harder for Malaysians to fly."

    Then you cant make lot of money and the best way us is to.move your operation to indonesia..

    Posted 6 years ago by Ujang Mohd · Reply

  • (a) Lie - yes, there is always a need of a new lie to cover the previous lie in Malaysia history, never ending story. The only 'aim' is just to cover/hide someone's fault with the country's resources.

    (b) I don't travel oversea much but I used to send my children to airport. To me the obvious difference between KLIA and KLIA2 is the drop-off area. In KLIA2 you can't afford to spend few minutes with your friends because of the man-made traffic jam - most of the roads are blocked. You will really enjoy in KLIA because the atmosphere is totally different - no such blocking.

    Posted 6 years ago by Shiaw Loh · Reply