KUALA LUMPUR: The Malaysian Aviation Commission (MAVCOM) is reviewing the Passenger Service Charge (PSC) to standardise it for the Kuala Lumpur International Airport (KLIA) and KLIA2.
Chief operating officer Azmir Zain said the new PSC for both airports would likely be implemented beginning January 2018.
“The implementation of the PSC has been planned to occur over a two-year period.
“A complete equalisation will potentially result in an increase of fares to RM73 from RM50 presently,” he told reporters after unveiling “Waypoint”, MAVCOM’s inaugural industry report on the aviation sector yesterday.
Also present was MAVCOM Executive Chairman, Tan Sri Abdullah Ahmad.
Azmir said the commission was also developing a long-term framework on the airport charges.
“The aircraft landing and parking charges will also be reviewed at an appropriate time in the future, together with the PSC,” he added.
Meanwhile, Azmir confirmed MAVCOM’s move to charge all passengers departing Malaysian airports RM1 beginning next year, in its bid to become financially self-sustained.
“There is a definite plan by MAVCOM to charge all departing passengers from Malaysia a RM1 levy, with the exception of those flying with the rural air services in Sabah and Sarawak,” he said, adding, the Malaysian Aviation Commission (Amendment) Bill would be tabled at the next sitting of parliament in October.
The bill, which was first read in the Dewan Rakyat last week, will allow MAVCOM to impose the charge and regulations on both companies and individuals.
Under the bill, MAVCOM will also be able to impose a maximum financial penalty of RM1 million for failure to observe its guidelines.
On another note, MAVCOM’s Waypoint report said that passenger traffic growth in 2017 is expected to overtake that of 2016, adding, average fares have also been decreasing since 2010.
It projected that passenger traffic in 2017 would grow at between 7.8 per cent and 8.8 per cent, equivalent to between 98.3 million and 99.2 million passengers, as Malaysian carriers are expected to increase their capacity by 14.3 times during the year.
The report noted that the revenue of Malaysian carriers had grown at a compounded annual growth rate of 2.5 per cent, despite average fares declining 3.4 per cent over the last seven years.
It also noted that addressing the capacity requirements would require significant capital expenditure in the short-to medium term, mainly due to the decline in the price of jet fuel to US$52 (US$1=RM4.29) per barrel in 2016 from US$92 per barrel in 2010, putting pressure on the carriers to charge lower fares.
It added that between 2010 and 2015, the aviation industry contributed an average of RM5.1 billion annually to the Malaysian economy.
Connectivity in Malaysia, the third largest aviation market in ASEAN after Singapore and Thailand, had improved, as the number of international destinations served by Malaysian airports increased to 116 in 2016 from 107 in 2010.
The report also said the fleet size of Malaysian carriers grew to 278 aircraft in 2016 from 210 aircraft in 2010, and was expected to increase, while average fares for domestic and international routes declined by 5.9 per cent and 8.0 per cent per annum respectively.
The Waypoint reports will be released on a bi-annual basis by MAVCOM. — Bernama