ID :
200864
Fri, 08/12/2011 - 11:34
Auther :
Shortlink :
https://oananews.org//node/200864
The shortlink copeid
AIRPORT TAX HIKE COULD BE SUSPENDED, SAYS OSK
KUALA LUMPUR, Aug 12 (Bernama) -- There is a high probability that the much
talked about hike in airport tax could be suspended due to the possibility of
changes to the management of Malaysia Airports Holdings Bhd (MAHB), OSK Research
said Friday.
"We understand that Thursday, AirAsia chief executive officer Tony
Fernandes and the AirAsia-MAS collaboration exco met with MAHB managing
director, Bashir Ahmad Abdul Majid.
"While we do not know what the discussions centered on, negotiations on
passenger service charges may have been on the agenda. Hence, there is a high
probability that the rate hike could be suspended," said OSK in its research
report Friday.
It was reported that MAHB would raise the airport tax on international
passengers by RM14 to RM65 for all airports. For the low cost terminal, tax
on international passengers will be increased by RM7 to RM32. (USD1=RM3.00)
However, even if the higher airport tax for international passengers from
KLIA and Kota Kinabalu’s terminal is implemented, the move will have no upside
impact on revenue and earnings for MAHB.
This is because the proposed RM14 increase to be collected from passengers
under the new rates, is currently being subsidised by the government.
Hence, once the tax hike takes effect, MAHB will be collecting directly from
the passengers.
However, the higher tax on international passengers departing
from the low cost terminal and Kota Kinabalu airport could potentially lift
earnings by RM43 million to RM45 million per annum, or 11.3 per
cent in 2012 financial year.
This is assuming that there will be no revenue sharing with the
government.
OSK also said that although the quantum of increase is rather
substantial at 27 per cent and 28 per cent for the international low cost
terminal and non-low cost terminal passengers, it would not substantially
hamper passenger growth.
Furthermore, Malaysia's airport taxes are considered relatively lower than
those charged by airports in Thailand and Indonesia, which are seeing strong
growth in air travel despite their lower per capita income.
talked about hike in airport tax could be suspended due to the possibility of
changes to the management of Malaysia Airports Holdings Bhd (MAHB), OSK Research
said Friday.
"We understand that Thursday, AirAsia chief executive officer Tony
Fernandes and the AirAsia-MAS collaboration exco met with MAHB managing
director, Bashir Ahmad Abdul Majid.
"While we do not know what the discussions centered on, negotiations on
passenger service charges may have been on the agenda. Hence, there is a high
probability that the rate hike could be suspended," said OSK in its research
report Friday.
It was reported that MAHB would raise the airport tax on international
passengers by RM14 to RM65 for all airports. For the low cost terminal, tax
on international passengers will be increased by RM7 to RM32. (USD1=RM3.00)
However, even if the higher airport tax for international passengers from
KLIA and Kota Kinabalu’s terminal is implemented, the move will have no upside
impact on revenue and earnings for MAHB.
This is because the proposed RM14 increase to be collected from passengers
under the new rates, is currently being subsidised by the government.
Hence, once the tax hike takes effect, MAHB will be collecting directly from
the passengers.
However, the higher tax on international passengers departing
from the low cost terminal and Kota Kinabalu airport could potentially lift
earnings by RM43 million to RM45 million per annum, or 11.3 per
cent in 2012 financial year.
This is assuming that there will be no revenue sharing with the
government.
OSK also said that although the quantum of increase is rather
substantial at 27 per cent and 28 per cent for the international low cost
terminal and non-low cost terminal passengers, it would not substantially
hamper passenger growth.
Furthermore, Malaysia's airport taxes are considered relatively lower than
those charged by airports in Thailand and Indonesia, which are seeing strong
growth in air travel despite their lower per capita income.
