‘Passenger Service Charge’ is unreasonable, will continue to lobby – MAS

 |Aug 17, 2016

 

It is learnt that MAS will continue to lobby with Malaysian Aviation Commission (MAVCOM) to get the identical charges at KLIA, KLIA2 and Subang airports for all the airlines.
It is learnt that MAS will continue to lobby with Malaysian Aviation Commission (MAVCOM) to get the identical charges at KLIA, KLIA2 and Subang airports for all the airlines.

Malaysia Airlines Berhad (MAS) has once again reiterated its stance that the current fee structure for passenger services charge in Kuala Lumpur International Airport (KLIA) is unreasonable.

In a response to MO team, MAS pointed out that nowhere in the world there is RM 32 disparity between KLIA and KLIA2 in charges.

It is learnt that MAS will continue to lobby with Malaysian Aviation Commission (MAVCOM) to get the identical charges at KLIA, KLIA2 and Subang airports for all the airlines.

MAVCOM is a commission entrusted by the government to look into the passenger service charges issue.

If the rates are not standardized MAS will be forced to operate some of its flights from KLIA2, pointed out in the statement.

Early this month MAS Chief Executive Officer Peter Bellew has called the government to standardize the airport charges in KLIA and KLIA2 to provide a healthy competition.

He said the move was crucial for MAS to become profitable again as it needed a “competitive set of charges at our home base” that would protect workers’ jobs and enable new jobs to be created in the future.

At present the charges for KLIA is at RM 65 and KLIA2 is at RM 32.

Bellew called the price disparity as totally unfair and completely anti-competitive.

Echoing the similar views with MAS, International Air Travel Association (IATA) urged the government to remove the differential in the passenger service charge at KLIA and KLIA2.

IATA believes uniformity in the passenger service charges will help to reduce the air travel cost.

However, Transport minister Liow Tiong Lai has a differing view towards the passenger service charge, pointing out that lower taxes were imposed at KLIA2 has always been government policy to support the low cost carrier sector.

He also welcomed MAS and other low cost airline to operate from KLIA2 in order to enjoy the lower airport tax.

In his usual mode of jab, Air Asia group chief executive officer Tony Fernandes defends that lower charges should be maintained to better serve a broad range of travellers.

He also brushed aside IATA’s proposal calling for uniformity stating Malaysia should not allow the association to determine the next cause of action in the country’s aviation industry.

SHARE
Ramani has been a writer and analyst for the past 10 years believes in fair news reporting.