KUALA LUMPUR: The International Air Transport Association (IATA) has welcomed Malaysia's decision to revise its passenger services charges (PSC) but views the newly-introduced transfer fee can affect Kuala Lumpur International Airport's (KLIA) competitiveness in Southeast Asia.
"The introduction of the transfer PSC can impact the competitiveness of KLIA, especially when vying for transfer traffic in Southeast Asia, which has strong aviation hubs in Bangkok, Kuala Lumpur and Singapore.
"We urge the Malaysian Aviation Commission (Mavcom) to revisit this when the aviation service charges are next reviewed," IATA regional vice president for Asia Pacific Philip Goh told Business Times.
He said the differentiation in the PSC between KLIA Terminal 1 and Terminal 2 is disappointing especially since there is no significant difference in service or facilities between the two terminals.
However, Goh lauded Mavcom's engagement with the industry in a robust consultation process before deciding on the changes to the PSC.
"This is commendable and a best practice that needs to be maintained, especially with the impending merger of Mavcom and the Civil Aviation Authority of Malaysia (CAAM). We look forward to continuing our engagement with Mavcom in a meaningful consultation process," Goh added.
IATA also welcomed the change to a single PSC for international travel, saying that greater transparency is needed to ensure the cost-relatedness of the services provided and how the costs can be recovered from airport users in an equitable manner.
Mavcom had last week announced the revised rates for the PSC which will take effect from June 1, 2024 to Dec 31, 2026 to support Malaysia's aviation industry recovery and adaptability in the post Covid-19 pandemic.
The domestic PSC remains at RM11 at all airports in Malaysia while the charges for international departure at KLIA Terminal 1 have been standardised to RM73 for Asean and beyond Asean destinations.
Previously, the departure fees for Asean and beyond Asean destinations at KLIA Terminal 1 were fixed at RM35 and RM73, respectively.
The international departure PSC at KLIA Terminal 2 and other airports in Malaysia is set at RM50 for Asean and beyond Asean destinations from RM35 and RM73, respectively.
A transfer PSC will be introduced at both KLIA terminals with charges at RM7 for domestic transfer, RM42 for transit at KLIA Terminal 1 and RM29 at KLIA Terminal 2 and other airports.
Mavcom said the introduction of the transfer PSC requires transit passengers to contribute towards the cost of airport infrastructure that they utilise.
"The adoption of a transfer PSC in Malaysia mirrors practices found in other airports across Asia, including Singapore, Thailand, and Japan, as well as in European countries such as the United Kingdom, Germany, and France," Mavcom said in a statement.
PSC or airport tax is paid by departing passengers to airlines upon the purchase of flight tickets. The airlines would then transfer the PSC to Malaysia Airports Holdings Bhd (MAHB) upon the completion of the flights.
MAHB said in its website that unused flight tickets are eligible for a full refund for the PSC from respective airlines.