SEPANG: Transport Minister Anthony Loke Siew Fook has clarified that the passenger service charge (PSC) serves as a key revenue source for airports, rather than a government tax.
He explained that the high cost of managing an airport necessitates revenue for the airport operator, with one of the main sources being PSC collected from passengers using the airport.
"PSC is the main revenue for airports. As the name suggests, PSC is not a tax. It is not a tax collected by the government.
"Instead, PSC is a fee collected by airport operators such as Malaysia Airports Holdings Bhd (MAHB) or Senai Airport for them to maintain and manage the airport.
"This is because to develop an airport, firstly, we need capital expenditure (capex).
"The cost of managing an airport is very high, so there needs to be revenue for the airport operator. There are maintenance costs, such as electricity bills, water bills, staff salaries, and the entire ecosystem within the airport," he told the reporters during the signing ceremony between MAHB and the government here today.
Loke also pointed out that there have been no revisions to the PSC.
He clarified that for domestic flights, the rate remains at RM11, and at KLIA, it remains fixed at RM73.
Conversely, he said for KLIA2 and other airports, the rate has actually decreased from RM73 to RM50.
"Previously, there was a separate category at a lower rate for Asean destinations, but now they are grouped with international destinations.
"To reiterate, it's just standardising the rates and not an increase," he added.
When questioned about the guarantees regarding enhanced facilities resulting from the PSC, Loke explained that airport operators must adhere to the regulations of the Malaysian Aviation Commission (Mavcom).
He said they are obligated to meet the standards set by the commission and Mavcom has key performance indicators (KPIs) for facilities and maintenance.
He noted that if operators fail to meet these standards, Mavcom will take action against them.
On March 13, Mavcom announced that the revised PSC rates would be effective during the First Regulatory Period (RP1) from June 1, 2024, to Dec 31, 2026.
The new rates, which include a security charge for airport security services, range from RM7 to RM73 for passengers departing from or transferring through Malaysia.
The domestic departure PSC remains at RM11 for all airports except Senai International Airport.
For international travel (within Asean and beyond), a unified international departure PSC of RM73 is set for KLIA Terminal 1, and RM50 for KLIA Terminal 2 and other airports, replacing the previous separate rates of RM35 for Asean destinations and RM73 for destinations beyond Asean.