Airport PSC for Asean destinations raised to match international ones, says Loke

SEPANG: The passenger service charges (PSC) payable by aviation passengers is not a tax, but a revenue channel for airports, says Anthony Loke.

The Transport Minister said the PSC was the main revenue for airport operators, adding that it was needed for operators to manage the airport.

“Developing an airport requires funds to pay bills and wages.

“The cost of managing an airport is very high and there has to be revenue for the operators,” he told a press conference after attending the signing of new Operating Agreements between Malaysia Airports Holdings Bhd (MAHB) and the government here on Monday (March 18).

Loke said there was no increase in the PSC, adding that only one component was standardised through the PSC revision, which was for Asean travel destinations.

“Previously there was a separate category at a lower rate for Asean destinations, but now they are grouped with international destinations,” he said, adding that Asean destinations are also international destinations.

“It’s just standardising the rates, and not an increase,” he added.

When asked for assurances airport operators could give in terms of improved facilities from the PSC, Loke said operators were subject to the requirements of the Malaysian Aviation Commission (Mavcom), and had to meet standards set by the commission.

“Mavcom has their KPI in terms of facilities and maintenance. If they are not up to mark, Mavcom will come for them,” Loke added in responding to questions on the recent PSC revision announced by Mavcom.

On March 13, Mavcom said the revisions would apply for the First Regulatory Period (RP1), spanning from June 1, 2024 to Dec 31, 2026.

In a statement, the commission said the newly revised PSC rates range between RM7 and RM73 for RP1 payable by passengers departing from and transferring through Malaysia, and they include a security charge for the provision of security services at airports.

The commission is maintaining the domestic departure PSC at RM11 at all airports except Senai International Airport.

The PSC for international travel (Asean and beyond) has been unified into a single international departure PSC of RM73 for KLIA Terminal 1, and RM50 for KLIA Terminal 2 (previously known as klia2), and other airports.

Currently, the Asean and beyond Asean PSC are at RM35 and RM73, respectively.