Tuesday, August 16, 2011

MAHB: Passenger service charge not linked to terminal construction costs

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) clarified the established level of passenger service charge (PSC) in Malaysia is not linked with the CONSTRUCTION [] cost of the terminal while any such proposed increase would be decided by the government.

It said on Tuesday, Aug 16 when operations were moved from Sultan Abdul Aziz Shah Airport in Subang to KLIA in 1998, the PSC remained the same in spite of the cost of the brand new airport.

In a statement issued through Bernama, MAHB said similarly, when new terminals were built at various airports, there was no corresponding increase in PSC.

'In fact in some cases, the PSC was reduced as was the case with the new terminal in Melaka where the PSC was reduced from RM51 to RM25.

'In the case of the existing LCCT (low cost carrier terminal), the PSC was initially at RM35 and subsequently reduced to RM25. Even when the LCCT was expanded to cater for wide-bodied aircraft, there was no corresponding increase in PSC,' it said.

MAHB issued the statement to clarify an article in New Straits Times on Aug 13, entitled 'MAHB reneged on tax deal'.

'MAHB wishes to clarify that the established level of PSC in Malaysia is not linked with the construction cost of the terminal and this is what was conveyed at the meeting referred to by AirAsia in the article,' it said.

'The PSC and other aeronautical charges are determined solely by the government as enshrined in the Civil Aviation Act 1969. Therefore, it is the sole prerogative of the Government to reduce, maintain or increase aeronautical charges which MAHB abides by.

'Through this Act, public and industry's interests are protected, as Malaysia Airports is not at liberty to revise aeronautical charges without the government's approval,' it said.

MAHB manages and operates 39 airports in Malaysia of which five are international, 16 domestic and 18 short take-off and landing ports.

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