DCA Aviation Fee Hike to be Introduced in Stages

14th Apr 2016

The Department of Civil Aviation (DCA) of Malaysia has announced earlier this month that it will introduce new aviation fees for carriers in this country, however this news didn’t went well with the major airlines such as AirAsia, MAB and Malindo, as they believe the hike is too high and too sudden.

To alleviate some of those worries, DCA is now proposing a solution – that is, to introduce the fee hike in a staggered manner and not all at once.

Malaysian Minister of Transport Liow Tong said the carriers asked for a staggered approach to introducing DCA’s new fees in order to better plan their budgets and also to avoid any sudden impact this might have on the fares.

Speaking with the reporters, Liow said:

We are working on a plan on how to increase the charges while at the same time ensuring that the airlines benefit from it.

He also said the DCA will be working close with the aviation industry on finding the best way to introduce these fee increases and create a “win-win” situation for all involved.

The staggered increase will benefit the airlines as DCA will continue to upgrade the services it provides. The fee increase is important because the DCA is in the midst of being transformed from a department into a civil aviation authority.

DCA Fees Haven’t Changed for 40 Years

DCA Director-General Azharuddin Abdul Rahman also brought up that the department needs to start providing better services, but it will need new equipment for this. Azharuddin said DCA kept the same aviation fees for 40 years and it is time to change them.

The Director-general said the changes have to be introduced in order to make DCA fees compliant with the International Civil Aviation Organization’s (ICAO) global air traffic management plan, or the Aviation System Block Upgrades (ASBU).

The new fees DCA is bringing include usage of air traffic facilities, airspace and pilot’s flight license. Minister Liow also said he would issue a statement soon, depending on the talks between the department and the airlines, the deadline for which is 15 April.