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Govt has right to determine PSC as it owns airports

Anthony Loke

Anthony Loke

Syndicated News
Written by Syndicated News

RAWANG — Sept. 3, 2019: The government has the right to determine the rates of the passenger service charges (PSC) as it owns the airports in Malaysia.

Malaysia Airports Holdings Berhad is the operator and the Malaysian Aviation Commission (Mavcom) the regulator and both are government-linked entities.

“All assets are owned by the government. This (PSC rates) is a cabinet decision, not the ministry of transport. We are not undermining anybody,” said Transport Minister Anthony Loke after an event here today, while adding that the lower charges will not affect the revenue of MAHB.

Last Friday the government announced that the PSC for international flights would be reduced from RM73 to RM50 at all airports in Malaysia, except for KL International Airport,  effective October 1.

The charge for Asean flights remains at RM35 and for domestic flights RM11.

The International Air Transport Association yesterday said the decision to lower the charges has undermined Mavcom’s credibility and would put KLIA on the losing side compared to other airports.

“The government has also undermined Mavcom’s credibility. Mavcom is the appointed economic regulator for airports and has the mandate and authority to determine airport charges. There is an established process for setting airport charges,” IATA’s regional vice-president for Asia-Pacific Conrad Clifford said. — Bernama

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