MAVCOM Announces Revision To PSC, Introduces Asean Tier

KUALA LUMPUR, Oct 31 (Bernama) -- The Malaysian Aviation Commission (MAVCOM) is introducing a new Passenger Service Charge (PSC) tier for travel to ASEAN countries at US$8.34 (RM35) per departing passenger from the current US$15.49 (RM65). This makes Malaysia the first ASEAN country to introduce such a tier. The new tier for ASEAN is set between the revised PSC rate of US$2.62 (RM11) for domestic flights, US$17.40 (RM73) for international flights out of all airports and US$11.91 (RM50) for the klia2. (US$1 = RM4.19) Currently, the PSC rate for domestic flights is RM9 for international airports and RM6 for the klia2. Rates for international flights, including ASEAN countries, is RM65 for international airports and RM32 for the KLIA2. The revised rates are effective Jan 1, 2017 and applicable to tickets issued from that date onwards. Tickets issued before Jan 1, 2017 would not be subject to the new rates, even if the date of travel takes place on or after Jan 1, 2017, MAVCOM said in a statement Monday. It said the introduction of the ASEAN PSC tier may increase the possibility of opening secondary gateways in ASEAN and consequently increasing traffic inflows into points in Malaysia. It is also in line with the ASEAN Single Aviation Market (ASEAN-SAM), also known as the ASEAN Open Sky Policy, the region's major aviation policy. The last PSC revision was on Nov 15, 2011. In addition to the revised PSC rates, the Commission will also introduce measures to ensure airport operators remain committed and accountable for improving airport service levels and financial efficiency, for the benefit of air travellers in Malaysia. Pursuant to this objective, MAVCOM said it is currently developing a framework that links aeronautical revenue to customers' and stakeholders' satisfaction levels. The framework will be introduced in 2017. "We are very focused on a long term and sustainable outcome. Our work on the PSC review aims to safeguard consumer interests, promote fair competition and ensure airport operators continue to enhance their service levels. "At the same time, the Commission will continue to strive for consumer protection through the Malaysian Aviation Consumer Protection Code 2016 (MACPC)," said Executive Chairman, Gen (R) Abdullah Ahmad. The PSC, an aeronautical charge, is levied on departing domestic and international passengers at all national airports. It is collected by the airlines upon purchase of tickets and paid to the airport operator following completion of the flight. Passengers who do not travel on a flight for which they have purchased their tickets are eligible for a full refund of the PSC. MAVCOM said the gradual equalisation of PSC at KLIA and klia2 to facilitate a level playing field would be introduced in stages with an immediate equalisation of PSC for domestic and ASEAN flights, a reduction in difference of the international (beyond ASEAN) PSC between KLIA and klia2 and review of the PSC to be performed in 2017 with a view for complete equalisation. In the long term, equalised PSC rates would facilitate an environment of fairer competition between airlines operating at these two terminals and also enables Malaysia to be better aligned to international guidelines. In formulating the PSC rates for airports in Malaysia, MAVCOM took into consideration the existing PSC rates in other airports around the region and globally. After the revised structure, passenger airport charges in Malaysia remain amongst the lowest regionally and globally, it said. --BERNAMA