AIRPORT TAX INCREASE

Air travel will cost more soon when airport tax, or passenger service charge, is raised from next month. Sources said Malaysia Airports Holdings Bhd (MAHB) is raising the tax to cover rising operating costs and finance airport expansion.

It is understood that the airport operator has proposed that the tax at the country’s 39 airports it manages, excluding low cost carrier terminals (LCCTs), be raised by RM14 for international travellers from Sept 15. These travellers will have to pay RM65 from RM51 (RM45 for airport tax and RM6 for security charge) now. The last increase was in 2002, when the charges were raised to RM45 from RM40 for international passengers and RM6 from RM5 for domestic departures.

The tax at low-cost carrier terminals (LCCTs) in Sepang and the Kota Kinabalu International Airport will also likely be raised by RM7, bringing the airport tax to RM32 from the current RM25 for international passengers. However, it is not known how much more domestic travellers at KLIA, other airports and LCCTs will have to fork out.

Sources said MAHB has received the go-ahead to implement the increase in airport tax. An announcement is expected soon.

At present, domestic passengers pay RM9 (RM6 for airport tax and RM3 for security charge) using KLIA and airports managed by MAHB while LCCTs charge RM6. In May 2007, the Transport Ministry halved airport tax at LCCTs from RM51 to RM25 for international passengers and from RM9 to RM6 for domestic passengers.

This latest development comes a day after Malaysia Airlines (MAS) and AirAsia announced a tie-up aimed at turning around the loss-making national carrier. On Tuesday, Khazanah Nasional Bhd, which owns 69.5% in MAS, said it will take up a 10% stake in AirAsia, while Tune Air Sdn Bhd, which owns 23% in AirAsia, will hold a 20.5% stake in MAS.

Sources said the latest increase in airport tax is also part of an operating agreement signed between MAHB and the Transport Ministry in February 2009. Under the deal, the government had agreed to a benchmark airport tax of RM65, excluding LCCTs. Until the tax was raised, the government has to compensate MAHB for the difference. MAHB had said then that the practice better shields the company from policy decisions that may not be commercially viable.

For the first six months of the year, 31.24 million passengers used the 39 local airports MAHB manages, up 12.6% from 27.74 million in the same period last year. KLIA saw 18.42 million passengers from January to June, a 13.4% increase from 16.25 million a year ago. The LCCT in Sepang handled 8.57 million passengers, up 19% from 7.21 million.