MAHB says again airport tax justified, reminds AirAsia of contract

MAHB says again airport tax justified, reminds AirAsia of contract

The airport operator says the passenger service charges allow airports nationwide to continue operations.

A standard PSC of RM73 is charged for all international flights out of klia2 and KLIA.
PETALING JAYA:
Malaysia Airports Holdings Berhad (MAHB) said that it does not set, fix or control passenger service charges (PSC), in responding to civil suits between its subsidiary Malaysia Airports (Sepang) Sdn Bhd and AirAsia over hundreds of million ringgit in outstanding PSC.

The airport operator said PSC partially covers the operating, improvement and maintenance of its 39 airports around the country, including 18 smaller airports in rural areas where PSC is not imposed.

PSC is supposed to be collected by airlines from departing passengers upon purchase of their flight tickets. The money is later to be paid to MAHB.

MAHB said the charge is among the lowest in the region and globally, even after Mavcom standardised PSC for non-Asean international flights to RM73.

Mavcom had said the standardisation was aimed at moving towards a more internationally accepted cost-based mechanism for charging PSCs, reduce subsidies at low-cost terminal klia2 and provide facilities to air travellers.

“In fact, when we benchmark Malaysia’s charging models with other airports regionally, it can be seen that airports charge the same PSC rates for all its terminals regardless of operating airlines.”

It added that Thailand’s Suvarnabhumi and Don Mueang international airports charged the same PSC although each provides full and low-cost services respectively.

MAHB also reminded airlines of the Conditions of Use 2017 (CoU), which documents terms and conditions on the use of airports as agreed with airlines using KLIA and klia2.

It said under the CoU, MAHB may close part of the airport, interrupt, suspend or stop airport services and facilities for repair, maintenance or upgrading works if prior notice is given and mitigation measures are taken.

“In the event of such a situation, we will not be liable for any loss or damages.”

Despite the tit-for-tat war of words and legal suits, MAHB said it was confident its differences with AirAsia would be resolved.

“It is in the best interest of our shareholders for MAHB to recover through proper means the loss of an average of about RM7 million per month due to AirAsia charging a lower amount than the gazetted rate.”

It was previously reported that AirAsia is only collecting RM50 PSC instead of the gazetted RM73.

“The disparity of approach to PSC and AirAsia’s action is also distorting competition to the effect that it impacts our ability to attract new airlines into the country and lessen the efforts in making Malaysia into a strong aviation hub,” said MAHB.

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