MAB Approves New KL Airport Service Charge Rates

14th Oct 2016

The new passenger service charge (PSC) rates at both Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International 2 (KLIA2) should be standardized, according to Malaysia Airlines.

MAB Chief Executive Officer Peter Bellew said at a press conference after signing a three-year deal with Liverpool FC:

It looks like we will get a more balanced PSC between KLIA and klia2. I'm quite optimistic that we will get a fair and reasonable result that suits the 51 other airlines that operate out of KLIA and also for MAS.

Mr. Bellew has also been meeting with the Malaysian Aviation Commission (Mavcom), an aviation regulation body, which is expected to announce the new PSC rate by the end of 2016.

MAB CEO said:

I met with them a couple of weeks ago. I think they are still in the process of going through what the final decision is around the PSC.

Same PSC for all Airlines Operating out of KLIA and KLIA2

With the new PSC rates, all 52 international airlines operating out of KLIA, including Malaysia Airlines will have the same charges at both KLIA and KLIA2. This should give everyone an equal opportunity.

At the moment, passenger service charges at KLIA are RM9 for domestic travel and RM65 for international travel. At KLIA2, the PSC for domestic travel is RM6 and for international travel is RM32.

When the charges get approved, the rate will be RM11 for domestic flights and RM73 for international flights, with the addition of a new PSC for inter-ASEAN flights of RM35.

MAB Wants the Government to Allocate More Funds for Promoting Tourism

Malaysia Airlines is also confident that the tourism industry in the country will be further developed, with more accommodations, restaurants and tourist attractions.

Bellew commented:

We are just scratching the surface of tourism.

Malaysia Airlines CEO remarked that the government should distribute more funds for promoting Malaysian tourism and also to introduce tax incentive programs for those who build accommodations (hotels and other) for tourists.

Bellew said the following regarding this:

I think we should put together the program of tax incentives for people. Not free money but against both personal taxation and corporate taxation. If you build hotels or accommodations, you should get accelerated capital allowance against your personal tax.

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