DCA: Let's talk about hike in aviation charges

PUTRAJAYA: The Department of Civil Aviation (DCA) will hear the views of stakeholders in the airline industry before finalising the proposed hike in aviation charges.
DCA director-general Datuk Azharuddin Abdul Rahman (pix) said the controversial hike was just a proposal and the transport minister will decide on it after a meeting with industry players tomorrow.
"This is not cast in stone. We have received queries from airlines and counter proposals, and we'll look into it," he said, assuring that airlines will have a chance to present their counter-proposals at the closed-door meeting.
"This will be discussed with the minister, Datuk Seri Liow Tiong Lai. He will decide and make the announcement on April 15," Azharuddin said at a press briefing today.
The proposed rates will see huge increases in fees under the Malaysian Civil Aviation Regulations (MCAR), Flight Operations Sector, and the Air Traffic Management Sector. Air Navigation Facility Charges (ANFC) will also be increased 10-fold to bring it more in line with rates in neighbouring countries.
Azharuddin said the increase was part of a larger plan to modernise the aviation sector and transform the DCA into a self-sustaining Malaysia Civil Aviation Authority (MCAA).
The transformation will see DCA switch from a government-funded entity to a non-profit organisation managing Malaysia's airspace paid by users.
He explained that the DCA currently spends about RM250 million a year but only makes about RM50 million a year, leaving an RM200 million deficit that the government has to foot.
Azharuddin said the upgrades were necessary to ensure air traffic, which had increased substantially over the years, could be managed safely and efficiently.
He pointed out that aviation charges had not been reviewed in decades, with the MCAR last reviewed in 1996, and the ANFC last reviewed in 1974.
The increase in fees covers the usage of air space, air traffic facilities and other services to the air operator's certificate (AOC) and the pilot's flight licence.
On a separate issue, Azharuddin said the DCA issued a provisional suspension of Rayani Air's Air Operator Certificate (AOC) for three months effective Monday.
He said the suspension notice had been sent to Malaysia's first syariah-compliant airline yesterday.
An inquiry on Rayani Air will be held on May 12 pertaining to the suspension order.
Azharuddin said this was the first time an airline's AOC was suspended under Regulation 24 of the Civil Aviation Regulations 1996.