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Malaysia cuts passenger service charge
Budget airline group AirAsia has won a hard fought battle to get airport fees at its Klia2 hub reduced.
The company embarked on a long drawn-out legal fight to cut the Passenger Service Charge (PSC) but either lost or saw its various legal challenges dismissed.
Transport minister Anthony Loke Siew Fook announced the PSC rate for international flights outside the ASEAN region will be reduced to RM50 from RM73.
This takes effect on October 1 and is valid for all airports except Kuala Lumpur International Airport (KLIA).
AirAsia had taken legal action against operator Malaysia Airports to reduce the rate at Klia2.
It had descended into a tetchy war of words over several months between the airline and airport operator with lawsuits flying to and fro.
It argued passengers shouldn’t have to pay the full RM73 at Klia2 as it is a budget airport with inferior amenities compared to KLIA.
The government has now seemingly agreed.
"For departing passengers who have made the PSC payment before the effective date (Oct 1), a claim for refund can be made at their airlines’ offices at airports nationwide," Loke said.
"We hear a lot of suggestions, especially from the airlines and the tourism industry on how the government can help offset this departure levy," he said.
Loke said it now marks a shift in pricing policy as the Malaysian Aviation Commission will now carry out a study based on an airport’s facilities rather than impose a flat rate for all airports.
"We are moving towards a situation where you will have a different rate for different airport according to the airport’s infrastructure and we will tier it. That will give a framework to airport operators to charge differently and we will see the charges based on the investment they are putting in," Loke added.
He said the decision was made in part to offset the extra cost to travellers as a separate departure tax is due to start this month.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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