IATA, M’sia to open talks on airports’ passenger service charges
KUALA LUMPUR – Malaysia has agreed to discuss with the International Air Transport Association (IATA) on the difference in passenger service charges between the main terminal at the KL International Airport (KLIA) and the Low-Cost Carrier Terminal (LCCT).
Malaysia Transport Minister Datuk Seri Chan Kong Choy was quoted by Malaysian National News Agency, Bernama, as saying his ministry had discussion with the Geneva-based association on a number of issues including the passenger service charge at the LCCT.
“We agreed to pursue this issue further through open and frank discussions,” he said.
IATA, at a media roundtable here last Friday, had urged the Malaysian government to standardise passenger services charges at both the KL International Airport (KLIA) and the Low-Cost Carrier Terminal (LCCT) in Sepang.
IATA’s Director General and Chief Executive Officer Giovanni Bisignani said the charges at the LCCT, 50% lower than at KLIA, are discriminatory and unfair against airlines. It was also against IATA rules.
“Why should airlines using the (KLIA) main terminal pay more as all airlines, including low-cost carriers, use the same runway and air traffic control while the airport’s security is the same for all?”
The move was also not acceptable and would put the Malaysian government in an embarrassing situation, more so since Malaysia was recently elected to the International Civil Aviation Organisation (ICAO) council.
IATA also wants greater transparency on how Malaysia Airports Holdings Bhd was able to reduce passenger service charge by 50%, as it does not want airlines and passengers using the main terminal to cross-subsidise those at LCCT.
Last June Transport Minister Datuk Seri Chan Kong Choy announced that the passenger service charge for international travel at the LCCT would be halved to RM25 (US$7.35) from RM51. This move was to raise Malaysia’s potential as an operational hub for the region’s LCCs. The charge at KLIA’s main terminal is RM45.
The LCCT is used by AirAsia and its affiliate airlines from Thailand and Indonesia.
Corinne Wan
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