PSC is interim before asset base framework implementation, says Mavcom

The regulator says the RAB framework will become the long-term methodology in calculating airport charges in the country


THE Malaysian Aviation Commission (Mavcom) said the 2017’s passenger service charge (PSC) rate is a temporary measure before the implementation of levies based on the Regulatory Asset Base (RAB) framework.

The regulator of the country’s commercial aviation sector also warned that carriers will be slapped with a show cause letter for any non-compliance of the Malaysian Aviation Consumer Protection Code (MACPC) 2016.

Mavcom said the RAB framework will become the long-term methodology in calculating airport charges in the country.

“As an outcome of the framework, Mavcom plans to set differentiated charges at airports in accordance with their size, level of facilities or services available.

“The RAB framework will also be implemented in tandem with the Airports Quality of Service framework which is intended to improve airport service levels for the benefit of passengers and other users of the airport,” Mavcom said in an email reply to The Malaysian Reserve (TMR).

Mavcom said the RAB framework will also be the funding model for airport operators.

The international PSC rate of RM73 was announced on Nov 20, 2017, and was effective since Jan 1, 2018.

AirAsia Group Bhd last week said it would be collecting the increased Kuala Lumpur International Airport 2’s (KLIA2) PSC levied by Malaysia Airports Holdings Bhd (MAHB) under protest for flight bookings following a recent court ruling.

AirAsia has also launched a petition to protest the additional RM23 PSC for passengers travelling beyond Asean from RM50 to RM73 per person.

AirAsia and MAHB are locked in a legal battle over the PSC at KLIA2 after the airline refused to collect the full amount of RM73 that the airport operator imposed for non-Asean international departures from KLIA2.

The airline has only been charging RM50 per passenger on its flights as it felt KLIA2 passengers should not be paying the same PSC as those departing from KLIA, which AirAsia deemed is more superior in terms of facilities and service quality.

Recent reports suggest that the carrier is at risk of being penalised by authorities over additional charges related to flight tickets.

Mavcom in a general reply said it would issue a show cause letter for any possible infringements provided under MACPC, and it would evaluate the carriers’ answers.

“The commission will determine whether the airlines have contravened the said provision of the MACPC.

“Prior to determining the quantum of the financial penalty, the airlines shall be accorded with the opportunity to provide mitigating factors within 14 days from the date of the notice issued by the commission,” Mavcom told TMR.

Under the amended codes, which came into force early in June, carriers must remove all hidden charges and show the exact fees to protect consumers. Carriers are also required to refund the PSCs, taxes, fees and charges, if a passenger fails to travel within 30 days with a minimum processing fee of 5%.