Updates on 26-05-2018: “The Malaysian Aviation Commission (Mavcom) is needed as an independent body to protect consumers and passengers when their rights are violated”, says Tan Sri Abdul Gani Patail. Only one airline with unethical business model and debts does not not like MAVCOM and MAHB.
On 28 December 2017 the Federal Government had gazetted the Malaysian Aviation Commission (MAVCOM) (Aviation Service Charges) (Amendment) Regulations 2017 P.U (A) 427. It was to regulate for equalisation of Passenger Service Charge (PSC) for all airports including KLIA-2. In fact, the PSC for all the 4 Terminals (including a Low Cost Terminal) in Singapore , 5 Terminals in Heathrow London and other major airports are at the same rate except for Malaysia.
The above legislation had been passed and it was to take effect on 1 January 2018. It was postponed to 1 March 2018 because MAHB need a bit of time to implement the new rates. The equalisation of PSC for all airports in Malaysia was supposed to take effect on 1 March 2018 except KLIA-2. Why is KLIA-2 so special?
Despite the said Regulation to equalise PSC, which was fixed at RM73 by MAVCOM, for international passengers (other ASEAN destinations) travelling from KLIA-2 still remain at RM50 until now. Why must international passengers flying out from KLIA-1 have to pay RM73 for PSC. Why the inequality?
Rumour has it that the previous spineless Minister of Transport, Datuk Liow Tiong Lai, did not implement the above Regulations to equalise all PSC in all our airports. It boggles the mind how could the Ministry of Transport be so daring to defy the law. The Attorney General should prosecute the culprits who are cooperating with certain “powerful” outsider.
By not implementing the said Regulation, the Government will have to pay for the shortfall of RM23.00 (RM73 – RM50.00) to MAHB as provided for in the Operating Agreement between MAHB and the Government. Therefore, public fund has been used to subsidise mostly foreigners travelling from KLIA-2. This cannot be allowed. If the Government wants the Rakyat to follow the law then the Ministry of Transport must set good example (“Kepimpinan Melalui Teladan” the familiar slogan during YAB Tun Dr Mahathir ‘s administration some 25 years ago) by following the said Regulation (P.U (A) 427). It is not fair for the Rakyat to subsidise passengers travelling from KLIA-2.
The Chairman of MAHB had said “The government will be forced to fork out RM60 million in subsidies if the passenger service charges (PSC) for long-haul international flights between KLIA and Klia-2 are not equalised.“, HERE.
Why is it that only a certain airline is having problems with PSC and paying up PSC and other debts owed to MAHB. Yet, the Ministry of Transport is not seen to be taking serious actions to stop such behaviour. It seems that airport authority in other countries have no problems with the said issues but only MAHB is facing with such issues year in year out.
It is an open secret that a certain airline does not want the said Regulation to equalise the PSC at KLIA-2 with KLIA-1 to be implemented. PSC is not paid in advance by passengers. Airlines are mere collecting agents to collect PSC for MAHB. Under, such circumstances, there is no reason for any airline to owe PSC to MAHB.
It is nonsensical for certain airline to argue that an increase in PSC will deter people from travelling. PSC in Heathrow Airport in London has PSC rates at GBP75 (equivalent to RM400) for long haul economy and GBP150 (equivalent to RM750) for premium cabin and yet travelers have not been deterred to go U.K., HERE.
The PSC set by MAVCOM can be said to be the lowest in the world. Prior to the existence of MAVCOM in the website of the certain airline, the unsuspecting consumers will have only to choice to OPT OUT from the hidden charges like insurance, extra baggage allowance and etc. Now with rules set up by MAVCOM all airlines in particular that certain airline could no longer cheat the consumers with the said “hidden charges”. Now in all airline’s websites they have to provide an OPT IN system for all the services provided by them. This had prevented that certain airline from making easy money from unsuspecting consumers.
“THANK YOU” MAVCOM for protecting the travelling public from being exploited by all airlines in particular that no class airline with their dirty and unethical business model of making extra profits from hidden charges.
It was due to the passing of this MAVCOM Amendment Bill in October 2017 that had made that certain no class airline upset with MAVCOM.
Yours truly calls upon the new Minister of Transport, YB Anthony Loke Siew Fook, to ensure that his Ministry follows the said Regulation and equalise all PSC at all airports with immediate effect and stop subsidising travellers for KLIA-2 only. The Ministry of Transport should follow the law and be fair to all passengers.