MAHB may increase airport tax in next review

Local and foreigner are seen checking in their baggage at the domestic check in counter at KLIA. SAMUEL ONG / THE STAR, 11TH APRIL 2016

KUALA LUMPUR: There is a possibility of an increase in the passenger service charge (PSC), or airport tax, in the next review, said Malaysia Airports Holdings Bhd’s (MAHB) managing director Datuk Badlisham Ghazali.

He said the increase was in line with the earlier announcement by the Department of Civil Aviation Malaysia that airlines operating out of Malaysia would be expected to pay up to 10 times more in fees charged.

“The Government is the one that will decide on the rate increase,” he told reporters after announcing MAHB’s five-year business plan, ‘Runway to Success 2020 (RtS2020)’ on Monday.

Badlisham said the rate, which was the lowest in the region, would provide a win-win situation to the aviation industry as it would support the infrastructure that was needed to be built by the government.

“To us, we can control what’s on the ground and in the aircraft, but, what we cannot control, which is the Government’s review, is the airspace. The last review was in 2011. Then the Government maintained its PSC of RM65 for international passengers and RM9 for domestic passengers for Kuala Lumpur International Airport,” he said.

The Government would make a revision on the PSC rate every five years. - Bernama