Anthony Loke orders Mavcom to review PSC

KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) has been ordered to conduct a review of the present passenger service charge (PSC) in an effort to introduce a new rate by next year, said Transport Minister Anthony Loke.
Speaking after meeting Mavcom officials at its office, here, Loke said in principle all airports in the country are not at the same level.
"KLIA airport in terms of prestige and facilities is not equivalent to other airports such as the ones in Langkawi and Penang. Therefore, the PSC has to
conform to the type of airport and facilities available there.
"Hence I have ordered Mavcom to conduct an immediate review of the PSC," he told reporters following the visit.
The PSC rates since January 1 now stands at RM11 for domestic destinations, RM35 for Asean destinations and RM73 for international destinations beyond Asean, across all airports in Malaysia.
Loke also announced that a special fund to develop the aviation industry will be set up by Mavcom from the extra proceeds derived from the RM1 surcharge imposed on passengers departing from Malaysian airports.
"The surcharge which has been imposed from May 1 will see Mavcom earn approximately RM35 million per year.
"This is expected to cover Mavcom's annual operations involving 59 staff which come to around RM25 million," he said.
The extra money from the levy proceeds, Loke said will go to the fund with Mavcom expected to present a detail report on its usage when Parliament reconvenes in June.
At present, the RM1 levy is imposed on all passengers with the exception of transit passengers, children below the age of two and those utilising the rural air service.
Loke also ordered Mavcom to conduct a study on placing a ceiling cap on flight ticket rates during festive seasons, given many public complaints about the matter.
"Domestic airfares have been liberalised since 2006. It is unfair for passengers especially those heading to East Malaysia to pay high prices during festive season.
"Imagine paying up to RM1,500 for an economy class seat," he said.
The proposal, Loke assured will not affect the market as the ceiling cap will only be imposed during festive seasons.
"The study will be conducted as soon as possible to ensure that Malaysians benefit from this move," he added.