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flee

Airport Tax Will Increase

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I do not believe that you are buying the same product - and this applies to both the airport and carrier.

 

Apart from having to trek through a shopping complex before arriving at the airport proper, MH and OD fares include checked in baggage allowances and on board food. You will have to pay additional fees for that on board the LCCs. These are some of the reasons why FSC fares are higher.

 

You are right that you are buying the same product and I have never said you are buying the same product. What I am saying is that MH and AK can't even compete on a level playing field with all else being equal. The government's job is not to subsidize passengers using T2 or tax more for passengers using T1.

 

Trekking through a shopping mall is frivolous in this argument, along with toilet size etc. That's how MAHB designed and built it - blame it on them. This is like giving T2 pax a rebate because of their flaws in designing a user-friendly terminal in the first place.

 

There are many airports that I can think that requires a long trek - one longer than the other terminals but that doesn't mean you get subsidized for your inconvenience.

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You are right that you are buying the same product and I have never said you are buying the same product. What I am saying is that MH and AK can't even compete on a level playing field with all else being equal. The government's job is not to subsidize passengers using T2 or tax more for passengers using T1.

Please, lets not delve into the topic of subsidies. Accept that it is a way of life - like how Airbus, Boeing, Bombardier and others receive state subsidies and tax breaks to develop and build their aircraft. Like it or not, we will almost never be able to get rid of that. So there is not much point blaming subsidies.

 

Having said that, many here will claim that there are no subsidies. The main reason why we have to walk through the Gateway shopping complex at klia2 is because they need to collect more revenue in the absence of subsidies from the government. Passengers will just have to walk further to reach their check in desks.

 

And talking about more subsidies - what about the subsidies all pax at KLIA and klia2 have to pay for the ERL, whether they use it or not?

 

See, there can NEVER be a level playing field.

 

What we want to see is transparency - so that we know what we are paying and what we get in return for that fee. Then we can establish if that is good value for our money.

Trekking through a shopping mall is frivolous in this argument, along with toilet size etc. That's how MAHB designed and built it - blame it on them. This is like giving T2 pax a rebate because of their flaws in designing a user-friendly terminal in the first place.

 

There are many airports that I can think that requires a long trek - one longer than the other terminals but that doesn't mean you get subsidized for your inconvenience.

It may be frivolous to you, but we have already read numerous complaints about this "feature" of klia2 in the media. So it is quite a pain for many passengers but they bear it because they can travel for less. So they get what they pay for.

 

We can't speak for other airports - I remember the very very long walk at Brussels Airport, if the plane is parked at the end of the terminal - but when the Malaysian government states that klia2 is designed to accommodate LCCs and MAB can operate there if it had an LCC, then it is just a policy of that particular state. Just like we cannot really do much when Boeing and Airbus gets subsidies for their Max and NEOs, governments will continue to do what governments do....

Background Reading: Pontifications: Hypocrisy and illegal subsidies at the WTO

https://leehamnews.com/2016/09/26/pontifications-hypocrisy-illegal-subsidies-wto/

If this levelling of playing field does jadi, it will be very, very bitter to swallow following eviction from BKI T2 not too long ago

Absolutely, the government is all powerful and airlines will have to put up with it and shut up!

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It may be frivolous to you, but we have already read numerous complaints about this "feature" of klia2 in the media. So it is quite a pain for many passengers but they bear it because they can travel for less. So they get what they pay for.

 

I really don't get the complaints. Having traversed through gateway@klia2 to get to the check-in desk before, I feel that it's hardly the painful experience that people made it out to be.

 

A lot of the complaints about klia2 is merely aesthetics - the only valid complaint about the terminal is the sinking, but even then there are precedents at other airports.

Edited by Mohd Suhaimi Fariz

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I really don't get the complaints. Having traversed through gateway@klia2 to get to the check-in desk before, I feel that it's hardly the painful experience that people made it out to be.

 

A lot of the complaints about klia2 is merely aesthetics - the only valid complaint about the terminal is the sinking, but even then there are precedents at other airports.

It does not bother me much either, cos I set my expectations accordingly. I don't expect first class treatment and facilities when I travel on budget carriers.

 

However, there may be some passengers travelling in large family groups consisting of three or more generations. In those circumstances, the facilities may be found wanting by the elderly/infirm and also the young ones.

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Airport tax in Malaysia one of lowest, says expert

FMT Reporters | September 27, 2016



PETALING JAYA: The travelling public is not happy with the increase in passenger service charges, or airport tax. AirAsia, too, is not happy. But Malaysia Airlines has welcomed it.


Malaysia Airlines Berhad is pleased that the passenger service charged at both KLIA and Klia2 would now be the same.


It said in a statement that 51 airlines, the International Air Transport Association and the Association of Asia Pacific Airlines had all requested equal charges between KLIA and klia2.


Equal charges would allow the airport authority to invest in vital repairs and upgrades of the 18-year-old KLIA terminal to match the super new facilities at klia2, Malaysia Airlines said.


It added that this would also allow Malaysia Airlines to compete on a rational basis in bringing down fares, according to a report in The Sun.



However, AirAsia Berhad Chief Executive Officer Aireen Omar said the increase in tax would be a direct burden to be shouldered by the people.


She said this would make air travel more expensive and reduce overall demand for services offered by all airlines operating in Malaysia, crimping tourism, threatening jobs and hurting the economy.


Meanwhile, The Sun quoted an unnamed aviation expert as saying the airport tax in the country was among the lowest in the region.


“If a study were carried out on the level of service and quality of international airports in the country, it would be easily proved they provide high quality service.


“This level of service, including lack of congestion and easy access to the airports, does not reflect the PSC that is being charged,” he was quoted as saying by The Sun.


He said the PSC in countries such as Thailand, Cambodia, Vietnam, Myanmar and Singapore was far higher, at the equivalent of RM110 for Vietnam, RM110 for Myanmar, RM92 for Thailand and RM104 for Singapore.

Edited by flee

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Hahahas, we knew it all along, "Malaysia has the the lowest/ one of the lowest in the region/world" statement will always come out with every price hike. KLIA Express price hike comes to mind......They should take this opportunity to hike 300% and we will still be the lowest in the region. :)

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Hahahas, we knew it all along, "Malaysia has the the lowest/ one of the lowest in the region/world" statement will always come out with every price hike. KLIA Express price hike comes to mind......They should take this opportunity to hike 300% and we will still be the lowest in the region. :)

Yes, very quick to compare when we are the lowest but if we are the worst or not so good, its all hushed up! :diablo:

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I'm curious - is it charged based on the destination right after Malaysia, or for the final destination on the ticket (à la UK APD)?

 

E.g If I book a KUL-SIN-NRT ticket with SQ, do I pay the ASEAN or non-ASEAN rate?

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I'm curious - is it charged based on the destination right after Malaysia, or for the final destination on the ticket (à la UK APD)?

 

E.g If I book a KUL-SIN-NRT ticket with SQ, do I pay the ASEAN or non-ASEAN rate?

Ahh.. don't tell me it is going to be theoretically cheaper to fly with SQ/TG/VN to non Asean destinations by transiting in SIN/BKK/SGN/HAN from KUL. What a morning pick-me-up :), thank you MAVCOM! You guys are swell

Edited by V Wong

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Can we reasonably expect a hissey fit from the red corner by later today ?

The big guy tweeted:

 

 

Hearing very good news on Airport charges. Great for consumers. Well done Mavcom if it's correct and to @aireenomar who lobbied for rakyat

 

The acceptance that low charges is what malaysia needs is historical for me and din. Much more work to be done. But huge step forward.

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Ahh.. don't tell me it is going to be theoretically cheaper to fly with SQ/TG/VN to non Asean destinations by transiting in SIN/BKK/SGN/HAN from KUL. What a morning pick-me-up :), thank you MAVCOM! You guys are swell

As it is...VN is already much cheaper than D7 especially to North Asia! My recent ICN-KUL return via HAN/SGN was barely rm1000...

Edited by Kenneth Chong WT

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As it is...VN is already much cheaper than D7 especially to North Asia! My recent ICN-KUL return via HAN/SGN was barely rm1000...

Yes.. dummy booking showed KUL NRT return for RM 767... if you book via third party sites and apply promo code can get extra off, up to RM45-50

Edited by V Wong

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PARLIAMENT | The government today sought to collect regulatory service charges on airport passengers, through an amendment to the Malaysian Aviation Commission (Amendment) Bill 2017 (Mavcom Bill).



The amendment bill, which expands Mavcom's powers, was tabled for its first reading in the Parliament by Deputy Transport Minister Ab Aziz Kaprawi and will be tabled for its second reading in this session.



The bill does not elaborate on regulatory service charges that will be imposed on air travellers.



According to China Press, Deputy Transport Minister Ab Aziz Kaprawi said the service charge is expected to be RM1 and will apply both Malaysians and foreigners leaving the country through airports.



https://www.malaysiakini.com/news/391083



Mavcom has basically privatized some of MoT function. Like all privatized project, this is the beginning of ever increasing Mavcom charges on pax. Indirect taxes in this country is among the highest regionally if not globally. For reasons most disposable income increase slower than inflation.


Edited by KK Lee

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Average airfares to continue dropping

KUALA LUMPUR: Average airfares will continue to drop amid competitive pressure despite higher passenger traffic volumes and increasing capacities and destinations.

Revenue growth, however, is expected to remain flat this year.

The rise in passenger traffic is also causing congestion at seven airports in the country, and significant capital expenditure is needed to redesign or add capacity at these airports to cater to the growing demand for air travel.

The Malaysian Aviation Commission (Mavcom) is also reviewing the passenger service charge (PSC) for international traffic at KL International Airport 2 (KLIA2), as it believes that it should match KLIA and other airports in the country.

The current PSC for international travel at KLIA and other airports in the country is RM70 as opposed to KLIA2’s RM50.

“The PSC beyond Asean is lower than KLIA and other airports ... air travellers are subsidising the PSC at KLIA2.

“This is unfair and inequitable and that is why we are looking to equalise it,” said Mavcom chief operating officer Azmir Zain after launching the first industry report known as “Waypoint”.

However, any matching would only take place in January 2018, he added.

Azmir said the commission would look into automatic refunds of PSC for ticket cancellations or a no-show for flights to save consumers the hassle of requesting the same from airlines.

Malindo Air is the only airline that automatically refunds the PSC to passengers now.

On airfares, Azmir said: “Our expectation is that airfares will continue to decrease even though there is capacity growth.

“We have seen signs and indicators that the ASK (average seat per kilometre) will increase and average fares will continue to tumble ... we would expect total revenues of the industry to be flattish.”

Mavcom said Malaysia’s air passenger traffic market grew 10.4% from January to July this year, and for the full year, it expected a growth of 7.8%-8.8%, or between 98.3 million and 99.2 million passengers.

He said Malaysia is the third-largest market in air traffic and the third-most connected in Asean after Thailand and Singapore.

“The capacity increase coincided with the period of decreasing average fares, whereby those for domestic and international routes decreased by 5.9% and 8% per annum, respectively.

“This contributed to local carriers’ overall reporting negative spreads between revenue per available seat kilometre and cost per available seat kilometre from 2010 to 2016.”

It said that this year, local carriers are expected to add 14.3% new capacity or 17 new aircraft in terms of ASK. Since 2000, the local airline fleet size has grown from 177 to 278 aircraft.

The contribution from the aviation industry towards the economy from 2010 to 2015 was RM5.1bil.

On infrastructure spending, Azmir could not say how much is needed, as it comes under the purview of the government.

However, the Mavcom report said spending is needed for key airports at Penang, Subang, Langkawi, Kota Baru, Miri, Kuching and Kota Kinabalu.

Asked if Mavcom would be raising landing and parking charges for airlines, he said a study is being conducted.

He added that Mavcom is looking to impose penalties for service level quality and a review is in the works.

 

Read more at http://www.thestar.com.my/business/business-news/2017/08/16/average-airfares-to-continue-dropping/#5seaxGzaTFKO6SKb.99

The Mavcom report is available here: http://www.mavcom.my/en/2017/08/15/malaysia-boasts-third-largest-aviation-passenger-market-asean/

 

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