Mavcom Unveils Revised Passenger Service Charges Effective From June 1, 2024

The Malaysian Aviation Commission (Mavcom) has unveiled revisions to the passenger service charges (PSC) for the First Regulatory Period (RP1), effective from June 1, 2024, to December 31, 2026. The updated rates aim to balance consumer welfare, promote sustainable recovery, and ensure financial stability in the aviation sector amid evolving market conditions.

Mavcom’s statement outlines the revised PSC rates, which vary based on departure and transfer locations within Malaysia. The rates range from RM7 to RM73 and include a security charge for airport security services.

The domestic departure PSC remains unchanged at RM11 for all airports except Senai International Airport, which operates under a separate rate structure.

Asean and beyond Asean PSC rates have been consolidated into a single international departure PSC. Kuala Lumpur International Airport (KLIA) Terminal 1 will have a PSC of RM73, while KLIA Terminal 2 and other airports will have a PSC of RM50.

Mavcom introduces transfer PSC rates across all airports. For domestic travel, the rate is RM7, while for international travel through KLIA Terminal 1, it is RM42, and RM29 for KLIA Terminal 2 and other airports.

Non-Malaysia Airports Holdings Bhd subsidiaries, such as Senai International Airport, Kerteh Airport, and Tanjung Manis Airport, were given the opportunity to propose tariffs for RP1. While Kerteh and Tanjung Manis adopted Mavcom’s recommended rates, Senai International Airport opted for a separate rate structure.

The revision of PSC falls under Mavcom’s responsibility for economic regulation as outlined in the Malaysian Aviation Commission Act 2015. Executive Chairman Datuk Seri Saripuddin Kasim emphasizes that the revised PSC aims to support a sustainable aviation sector and accommodate changing market dynamics while safeguarding passenger interests.

The PSC applies to departing and transferring domestic and international passengers at all national airports, as per the Gazette under the Malaysian Aviation Commission (Aviation Services Charges) Regulations 2016.

Mavcom’s announcement of revised PSC rates for RP1 reflects a strategic approach to balance the needs of stakeholders, promote economic resilience, and ensure the sustainability of the aviation industry. The revised rates are designed to stimulate travel demand while addressing operational and financial considerations in a rapidly evolving aviation landscape.

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