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Airport Tax Will Increase

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PETALING JAYA: Malaysia Airports Holdings Bhd has clarified that the Government has approved the implementation of new international passenger service charge (PSC), aircraft landing charge and aircraft parking charge.

 

Malaysia Airports said the approval was in line with the operating agreement it signed with the Government in February 2009.

 

“The international PSC will be RM65 compared to the previous RM51,” it said in a statement yesterday.

 

It said the RM65 charge would apply at the Kuala Lumpur International Airport (KLIA) main terminal building, Sultan Abdul Aziz Shah Airport in Subang, Langkawi International Airport, Penang International Airport, Kota Kinabalu International Airport Terminal 1 and Kuching International Airport.

 

Malaysia Airports added that the rates for international PSC at LCCT and Kota Kinabalu International Airport Terminal 2 would be RM32, up from RM25.

 

“At this stage, it is intended that the increase be applicable from Sept 15. The PSC rates have not been changed since 2002,” it said.

 

On the aircraft landing charge, Malaysia Airports said it would be increased in three stages by 9% per annum – in January this year, January 2012 and January 2013.

 

“Aircraft parking charge will also be increased in three stages by 18% per annum in the same period,” it said.

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I dont think an increase in passenger tax for airports besides KUL is justifiable.....take for example Penang, the airport is a dump and many areas are old n wor off. They should only increase after the expansion and renovation of PEN is completed. If u visit PEN airport n its infamous toilets, its a disgrace. Even the baggae collection areas/belts are also showing its age....

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Not only that, even KLIA staff season car park will increase with effect from 01 Sep from 25% - 100% depending on staff category............:rolleyes:

 

 

:hi:

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Notice that domestic departures not affected ?

Presumably so as not to membebankan rakyat (=burden the citizens)

Must remember to revisit this issue post GE13 :D

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how to make KLIA as a major hub when they just simply raised pax tax n airport chartges onto airlines - when they dont make enough due to inefficiency or losses due to "leaks"

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CONSUMERS and some airlines may frown upon airport operator Malaysia Airports Holdings Bhd's (MAHB) recent decision to increase aeronautical charges, but analysts say the move is long time coming.

 

MAHB is set to increase international passenger service charge (PSC) by 27% to 28% effective Sept 15 while aircraft landing and parking charges will be gradually raised up to 30% and 64% respectively, starting next January.

 

International PSC will increase to RM65 from RM51 at the KL International Airport (KLIA) main terminal building, Sultan Abdul Aziz Shah Airport Subang, Langkawi International Airport, Penang International Airport, Kota Kinabalu International Airport Terminal 1 and Kuching International Airport. Meanwhile, international PSC will be raised to RM32 from RM25 at the low-cost carrier terminal KLIA and Terminal 2 Kota Kinabalu.

 

The PSC rates have not been changed since 2002.

 

Landing and parking charges will be increased over three years starting January next year landing charges will go up 9% annually while parking charges will rise 18% per annum. The landing and parking rates have remained the same for 17 years.

 

The domestic PSC will likely remain the same at RM6 for LCCTs and RM9 for all other airports.

 

Under the operating agreement signed with the Government, MAHB is allowed a PSC increase every five years. Noteworthy, MAHB is already getting RM65 for every passenger, comprising RM51 paid by the passenger and RM14 paid by the Government, as compensation for not allowing the airport operator to raise its official PSC.

 

Under the operating agreement, MAHB can receive restitution form the Government if the actual PSC is below the benchmark PSC rate.

 

Therefore, no direct financial impact on MAHB is expected from the rise in international PSC to RM65 from RM51.

 

But the RM7 increase for international departures from the LCCTs will be an additional source of income for the airport operator.

 

Analysts do not expect the international PSC hike at KLIA and other airports to deter travellers on full-service carriers as the RM14 hike is small compared with the airfares paid.

 

“For price-sensitive passengers travelling internationally on low-cost carriers, there could be some impact on traffic although it is likely to be fairly insignificant,” says CIMB Research in a report this week.

 

The report adds that with the hike implemented on Sept 15, only tickets booked after this date will be affected by the increase in PSC, which means that the impact on financial year 2011 earnings will be negligible as AirAsia passengers usually book months ahead.

 

MAHB is not alone in pushing for higher aeronautical fees, as seen with the revision implemented by Changi Airport Group as at April 1.

 

The PSC for departing passengers using the Budget Terminal at Singapore Changi Airport was revised to S$7.80 (RM19.18) from S$4.80 (RM11.80) . In total, fees paid by budget terminal passengers, including PSC, passenger security service charge (PSSC) and aviation levy, will increase to S$18 (RM44.25) from S$15 (RM36.88).

 

This revision was to recover part of the cost of operating the budget terminal, which saw a S$20mil upgrade in 2009. The total passenger fee of S$15 has remained the same since the terminal opened in 2006.

 

Situation in Singapore

 

Singapore's airport operator also introduced a PSC and PSSC of S$9 and S$3 respectively for transfer and transit passengers, since these passengers have access to facilities and services in the transit areas of Changi Airport. The operator also raised aircraft landing fees at Changi Airport, resulting in a 15% average increase in airlines' landing, parking and aerobridge bill, with a higher adjustment for narrow-body aircraft.

 

CIMB Research adds that parking and landing charges at MAHB are 30% lower than Jakarta, which has the lowest rate among regional airports in Singapore, Bangkok and Hong Kong. MAHB was entitled to raise these charges back in 2009 but management held back to encourage traffic growth.

 

It says that the total landing and parking fees at Hong Kong and Singapore are three times and 2.5 times what MAHB charges, as both are prominent financial hubs in the region with extensive network connectivity, making them favoured destinations for most airlines.

 

Another operator looking to raise PSC is Airports of Thailand, which operates several airports including Bangkok's Suvarnabhumi Airport. The local press in Thailand reported that a hike in PSC was needed to help cover higher operating costs and capital expenditure (capex) spent in the past several years to improve services at Suvarnabhumi Airport.

 

The suggestion is to raise PSC on international flights by some 14% to 800 baht (RM79.65) from 700 baht (RM69.70) while domestic PSC will be more than doubled to 250 baht (RM24.89) from 100 baht (RM9.96). The new PSCs, if approved, will be effective October next year.

 

If the Civil Aviation Board does not approve the drastic domestic PSC hike, then another plan is to leave it at the existing 100 baht but raise the international PSC to 900 baht (RM89.61) instead.

 

Therefore, analysts view MAHB's move to raise aeronautical charges as timely.

 

“Overall, we are positive on the rise in the PSC, landing and parking charges, which we think is timely, given the current inflationary environment and high capex for the new terminal,” says CIMB Research.

 

Among regional peers such as Suvarnabhumi and Changi, KLIA is still behind in terms of international passenger movement. Last year, KLIA recorded total passenger traffic of 34.09 million people, of which 23.77 million came from international flights and 10.32 million from domestic flights. Comparatively, Changi Airport handled about 42 million passengers while Suvarnabhumi saw 42.8 million, of which 32.4 million were international passengers.

 

“Just looking at the figures, KLIA still has a long way to go in terms of becoming an international hub for travel compared with our neighbouring countries. KLIA needs to improve its global connectivity it needs to bring in top airlines while the local airlines need to expand their international network, either by way of frequencies or new routes,” notes an industry observer.

 

MAHB in talks

 

MAHB has said that it was in talks with British Airways (BA) and Qantas Airways on the possibility of both airlines mounting flights to KLIA, a decade after these airlines suspended flights to KLIA owing to a lack of network connectivity here. However, sceptics are unsure if these airlines will resume flights to KLIA, as these airlines have said a decade ago that it made more commercial sense to redeploy capacity to where demand was much better served Changi Airport.

 

“It would be good if KLIA is able to attract BA and Qantas as there will be better route connectivity from KLIA and it will give diversity for passengers travelling out of KLIA,” said a local aviation analyst.

 

The observer adds that the “fifth freedom rights” for airlines will help KLIA grow further.

 

Essentially, “fifth freedom rights” is when an airline picks up passengers from point A and drops off/picks up passengers at point B before flying to point C. For instance, a Singapore Airlines' flight from Kuala Lumpur to Melbourne will use Changi as its point B for drop off and picking up of new passengers flying to Melbourne.

 

“This strategy is obviously more beneficial in building the hub-and-spoke network of full-service carriers as low-cost carriers are point-to-point airlines,” he says.

 

But it is not all bleak in terms of growth at KLIA. Among its peers in Bangkok and Changi, KLIA actually posted a stronger overall growth of 14.8% against Changi's 13% and Suvarnabhumi's 5.6% last year. It has, however, lagged behind Jakarta's Soekarno-Hatta International Airport's 19.4% growth to 44.4 million passengers in 2010.

 

Another bright spot would be Qantas' announcement this week that it would like to set up a new premium service carrier in Asia. While no other details were provided, JP Morgan in its report says that the Qantas Group was likely to increase access to south/west Asia by establishing the new airline in the region with either Singapore or Kuala Lumpur as the hub.

 

Thus, now MAHB will have to work towards attracting this new airline to choose KLIA as its preferred hub over Changi.

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International PSC will increase to RM65 from RM51 at the KL International Airport (KLIA) main terminal building, Sultan Abdul Aziz Shah Airport Subang, Langkawi International Airport, Penang International Airport, Kota Kinabalu International Airport Terminal 1 and Kuching International Airport. Meanwhile, international PSC will be raised to RM32 from RM25 at the low-cost carrier terminal KLIA and Terminal 2 Kota Kinabalu.

 

....

 

Under the operating agreement signed with the Government, MAHB is allowed a PSC increase every five years. Noteworthy, MAHB is already getting RM65 for every passenger, comprising RM51 paid by the passenger and RM14 paid by the Government, as compensation for not allowing the airport operator to raise its official PSC.

 

Does it mean the gomen will no longer subsidizing MAHB?

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Higher airport tax? Don't worry, some minister will tell us that our airport tax is still low, much lower than the UK. :finger:

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NEW RATES OF INTERNATIONAL PASSENGER SERVICE CHARGE AND AIRCRAFT LANDING AND AIRCRAFT PARKING CHARGES

SEPANG – In reference to the various press reports on increase in aeronautical charges, Malaysia Airports wishes to clarify that the Government of Malaysia has approved the implementation of the new international passenger service charge (PSC), aircraft landing charge and aircraft parking charge at airports operated by the Group. This approval is in line with the Operating Agreement signed between the Government and Malaysia Airports in February 2009. The charges have been gazetted on 13 July 2011 and are as follows:

 

International PSC

· From RM 51.00 to RM65.00 at the following airports:

•KLIA Main Terminal Building, Sultan Abdul Aziz Shah Airport Subang, Langkawi International Airport, Penang International Airport, Kota Kinabalu International Airport Terminal 1 and Kuching International Airport.

· From RM 25.00 to RM32.00 at LCCT KLIA and Terminal 2 Kota Kinabalu.

 

The PSC rates have not been changed since 2002.

 

PSC is paid by the travelling passenger. For the purpose of convenience, airlines assist airports with the collection of these charges. At this stage it is intended that the increase be applicable from 15 September 2011.

 

Aircraft Landing and Parking Charges

The landing and parking rates have not changed for the last 17 years and Malaysia has one of the lowest charges in the world. The gazetted increase is at 30% for landing and 64% for parking. These increases will be implemented gradually as follows:

 

· Aircraft landing charge to be increased in three stages by 9% per annum on January 2012, January 2013 and January 2014.

· Aircraft parking charge to be increased in three stages by 18% per annum on January 2012, January 2013 and January 2014.

 

Under the present incentive scheme Malaysia Airports provides free landing for 3 years for all new routes and additional frequencies operated by the airlines. This programme which was implemented in 2002 is still applicable .

 

Parking charges are based on 12 hour blocks with the initial first 3 hours free.

 

More : http://www.klia.com.my/index.php/component/content/article/46/226.html

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Airport tax increase done without stakeholders' consultation

 

PETALING JAYA (Aug 30, 2011): AirAsia group chief executive officer Tan Sri Tony Fernandes lambasted the Transport Ministry for announcing an increase in airport tax, or passenger service charge, without prior consultation with players in the industry.

 

He said AirAsia will appeal against the hike in order to lessen the burden on passengers and to encourage more people to fly.

 

On Aug 11, Transport Minister Datuk Seri Kong Cho Ha confirmed a report in theSun that airport tax would be increased soon.

 

He said Malaysia Airports Holdings Berhad (MAHB), the operator of Malaysia’s 39 airports, would make an announcement on the hike in due course.

 

In an interview with China Press published today, Fernandes express disappointment that AirAsia, as the biggest client of MAHB, was not given prior notice or consulted on the impending hike.

 

He said the authorities concerned should have sought the views of players in the aviation industry or at least informed AirAsia.

 

“I have spent so much time fighting for lower charges, the Transport Ministry instead raised the airport tax … How would it help the people?” he lamented.

 

Fernandes, who has turned rival Malaysia Airlines into a partner early this month, said he believed the national carrier would also not be happy with an airport tax hike.

He felt that the ministry should help airports attract higher passenger flow but it is doing the opposite.

 

He opined that it would be better to levy RM50 service charge to attract 20 million passengers than to charge RM100 but get only 10 million passengers, as passengers also spend at the airports’ fast-food outlets and duty-free shops.

 

“If I own airports, I would charge only RM5 (in airport tax), to attract 30 million, (or even) 40 million passengers,” he told the paper.

 

On another note, Fernandes brushed off the view expressed by many that the partnership forged between AirAsia and Malaysia Airlines would see an end to low-fare flights, saying “this is not our principle”.

 

“The AirAsia DNA is to make airfares cheaper so that more people can fly.”

 

And to fight to maintain the lower fares, he reiterated, the low-cost carrier will appeal against the impending airport tax hike.

 

He explained that fewer people would fly once airfares go up as a result of higher airport tax, which goes against the government’s aim of promoting tourism to attract more tourist arrivals, as well as its vision of turning Malaysia into a regional aviation hub.

 

Asked if the AirAsia-MAS tie-up is the prelude to a merger, Fernandes discounted such a possibility, saying it would be a “disaster” to do so.

 

On the possibility of him infusing the “AirAsia” culture in MAS following the tie-up, Fernandes said there is no need for AirAsia to bring in anything to MAS. However the two companies would clearly be "closer” and would learn from each other from now on.

 

Meanwhile, contacted by the daily for comment on Fernandes’ remark, Kong said it is MAHB’s right to increase airport tax, and it is not a decision of the ministry.

 

Earlier, he said MAHB was given the green light to increase airport tax in 2009 but did not implement it.

 

Source

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Meanwhile, contacted by the daily for comment on Fernandes’ remark, Kong said it is MAHB’s right to increase airport tax, and it is not a decision of the ministry.

 

 

HA! How convenient... :clapping:

Edited by alberttky

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MAHB to delay new charges

 

KUALA LUMPUR (Sept 9, 2011): Malaysia Airports Holdings Bhd (MAHB) today announced that it has been advised by the Ministry of Transport to put on hold, until further review, the government approved increases of charges on the international passenger service as well as on aircraft landing and parking.

 

The passenger service charge was due for an increase to 28% from 27% effective Sept 15 while the aircraft landing and parking charges were to be gradually raised up to 30% and 64% respectively, MAHB said in a statement today.

 

The new passenger service charges were to be borne by the travelling passenger.

 

Under the new rates, the international passenger service charge will increase to RM65 from RM51 at the KL International Airport's main terminal building, Sultan Abdul Aziz Shah Airport Subang, Langkawi International Airport, Penang International Airport, Kota Kinabalu International Airport Terminal 1 and Kuching International Airport. – Bernama

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I reckon Ministry of Transport should be split in two for sake of saving face

Ministry of Air Transport - headed by (none other than) Tan Sri Tony Fernandes

Ministry of Other Transports - headed by Datuk Seri Kong Cho Ha (or any other limp squid variety)

:pardon:

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So weird, why suddenly they choose beginning 15th September as "Tax Day"? Not only for airport tax but prepaid reloads and starter packs telco service tax (6%) too. Is that gift to customer one day before "Malaysia Day"?

 

http://thestar.com.my/news/story.asp?file=/2011/9/8/nation/20110908131500&sec=nation

Edited by Ikman Ikreza

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Airport tax increase done without stakeholders' consultation

 

 

.............“If I own airports, I would charge only RM5 (in airport tax), to attract 30 million, (or even) 40 million passengers,” he told the paper..........

 

 

 

Source

 

Hello tambi ......... cakap saja tak guna oiii ........ Lu charge sana, charge sini, bag kasi charge, check in kasi charge, nanti toilet pun mau kasi charge ...... poooo raaahhhhh...... chaaaittt ...... lu belit punya kaki lu tau ka???............ =@

 

 

 

:hi:

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Hello tambi ......... cakap saja tak guna oiii ........ Lu charge sana, charge sini, bag kasi charge, check in kasi charge, nanti toilet pun mau kasi charge ...... poooo raaahhhhh...... chaaaittt ...... lu belit punya kaki lu tau ka???............ bomb.gif

 

 

hi.gif

 

Talk is free ..... so our fren Ranger Tony (this is what i will call him since he owns QPR or some say he's just a proxy for the money) can blah blah all he wants till kingdom comrofl.gif

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So weird, why suddenly they choose beginning 15th September as "Tax Day"? Not only for airport tax but prepaid reloads and starter packs telco service tax (6%) too. Is that gift to customer one day before "Malaysia Day"?

 

http://thestar.com.my/news/story.asp?file=/2011/9/8/nation/20110908131500&sec=nation

 

So that the PM can present people friendly budget in a few weeks time

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Ever since the new PM in the office, every tax increased. Can you imagine? Now even the prepaid SIM card customer also has to pay the tax! Brilliant!

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The good news is it is on hold, probably until after the next GE.

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PETALING JAYA: The Transport Minis­try has approved new airport taxes to be imposed on passengers travelling to international destinations.

 

Passengers departing from five international airports will pay RM65 instead of RM51 from Nov 15 while passengers leaving from the low-cost carrier terminal (LCCT) at the KL International Airport and Kota Kinabalu’s Terminal 2 will pay RM32, up from RM25.

 

No new rates have been announced for passengers on domestic flights.

 

The ministry also approved new aircraft landing and parking charges to be imposed on airlines.

 

The increase for aircraft landing is 30% and for aircraft parking charges, 64%. It will be implemented gradually.

 

Transport Minister Datuk Seri Kong Cho Ha said the decision to revise the airport charges was first made in 2009 but was not implemented.

 

“We needed to review the decision and gather feedback from stakeholders before implementing it.

 

“The Government has to fork out some RM100mil a year to pay for the charges,” he said, adding that it was unfair for taxpayers to bear the extra cost of airport charges for international travellers.

 

Kong said the new charges were still the lowest among airports in the region.

 

http://thestar.com.my/news/story.asp?file=/2011/10/28/nation/9791793&sec=nation

 

So this is the "aviation policy" they were talking about?

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New Rates For International Passenger Service, Aircraft Landing & Parking Charges From Nov 15

 

KUALA LUMPUR, Oct 27 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) today announced it will implement new rates for the international passenger service charge (PSC), aircraft landing and parking charges from Nov 15.

 

The airport operator said it has been informed by the Transport Ministry that following a further review, approval has been given to enforce the new rates.

 

MAHB said the new PSC rates would be applicable to tickets purchased from Nov 15 onwards while the aircraft landing and parking charges would be raised in three stages from January 2012, January 2013 and January 2014.

 

For the International PSC, it would see an increase to RM65 from RM51 for departing international passengers where applicable at the relevant airports and an increase to RM32 from RM25 for departing international passengers at LCCT, KLIA and at Terminal 2 Kota Kinabalu International Airport.

 

"All other PSC charges remain the same," it said in a statement Thursday.

 

As for aircraft landing and parking charges, MAHB said the gazetted increase was at 30 per cent for landing and 64 per cent for parking.

 

"These increases will be implemented gradually, aircraft landing charges to be increased in three stages by nine per cent per annum on January 2012, January 2013 and January 2014," it said.

 

As for aircraft parking charges, MAHB said the rates would be increased in three stages by 18 per cent per annum on January 2012, January 2013 and January 2014.

 

MAHB manages and operates 39 airports in Malaysia: five international, 16 domestic and 18 short take-off and landing ports. It also has operations in India, Turkey and Maldives.

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