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Removing the Differential in Passenger Service Charge - A Priority for KLIA

​IATA has urged the Ministry of Transport (MOT) and Malaysian Aviation Commission (MAVCOM) to remove the differential in the passenger service charge (PSC) at KLIA and KLIA2.

“There is no justification for a difference in the PSCs between KLIA and KLIA2 since the facilities and services at the two terminals are comparable. Furthermore, any differential means passengers using KLIA could be subsidizing the passengers using KLIA2, even though both are accessing comparable facilities and services”, said Vinoop Goel, IATA’s Regional Director, Airport, Passenger, Cargo, and Security, Asia Pacific.

Goel said removing the differential is also aligned with ICAO principles, which states there should be no discrimination if airlines are accessing the same level of facilities and services. “It is important that Malaysia, as a member of the ICAO Council, upholds this principle.”

Goel pointed out that the priority of the government should be to lower the cost of air travel. The IATA commissioned Value of Aviation study found that aviation is expected to support 1 million Malaysian jobs and $26 billion in economic activity in 2035, double that of today. But these jobs and GDP growth are by no means guaranteed if the necessary infrastructure is not available, and if the policies, including fees and charges, do not facilitate the growth of the industry. The study highlights the importance of establishing a level playing field for all aviation players to flourish and maximizing the full potential that aviation can play in the Malaysian economy.

”We will continue to engage the Government to ensure the adoption of industry best practices for the betterment of the aviation industry in Malaysia and the travelling public,” said Goel.

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