MASTERWORDSMITH
Did you know that airport tax aka passenger service charge will soon be increased? According to Transport Minister Datuk Seri Kong Cho Ha, the operator of Malaysian airports and Malaysia Airports Holdings Bhd (MAHB) are expected to make the announcement soon.
In a Bernama statement, Kong said the approval for the airport tax increase had been given as part of an operating agreement signed between MAHB and the Transport Ministry in February 2009. However, it had not been implemented and they left it to MAHB to implement it and to make the appropriate announcement.
In a front page story, The Sun said:
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.
The Malay Mail carried a report which quoted an unnamed source that said that Malaysia Airports Holdings Berhad (MAHB) has no plans to increase airport tax for domestic travellers at this point. Kong also told The Malay Mail that the increment had nothing to do with the recent merger between Malaysia Airlines and AirAsia.
“It has nothing to do with the merger because every airline, including Singapore Airlines and SilkAir, will have to pay the new tax. There is no ulterior motive behind the move," said the minister.
Bear in mind that 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.
For sure, any increase in this airport tax during the current economic climate would affect air travel negatively. Malaysians would not want to travel as much and even tourists would be deterred from returning to Malaysia, especially if they pay high airport tax and yet see disappointing standards of service/facilities at airports. Such a move would dampen travel momentum and negatively impact passenger growth. Of course if the airport service/facilities and standards of maintenance are HIGH, people would have no qualms about forking out more.
In another report, MATTA Fair Organising Committee deputy chairman Boris Chang said MAHB should focus on improving their efficiency adding that charges should be based on efficiency and not in tandem with charges of other airports.
At the MATTA Fair pre-event press conference, Boris Chang said, “Focus should be on running the management efficiently and if we still manage to gain a decent profit and still be on top of the world, charging less should not be an issue."
So if travel industry feel this way, one really wonders why it is necessary at this point of time to increase airport taxes.
Why do the rakyat ALWAYS have to bear the brunt of such decisions?
If you want your blood to boil, kindly read:
The Opportunists' Utopia
Ahah! Did we not say so? and the ten links in that report.
Nazri says Tajuddin intervention could save Putrajaya billions
When Politicians Plot, the Public Get Shafted
Excuse me, my blood is really boiling and I cannot think straight. I am completely outraged that the rakyat are scr**ed big time.
Arrrrghhhh!!! CHANGE IS IMPERATIVE!!! Please remember that! Your vote counts. Every vote! And all of us MUST make that difference to secure a massive swing in the right direction.
In a Bernama statement, Kong said the approval for the airport tax increase had been given as part of an operating agreement signed between MAHB and the Transport Ministry in February 2009. However, it had not been implemented and they left it to MAHB to implement it and to make the appropriate announcement.
In a front page story, The Sun said:
Malaysia Airports Holdings Bhd (MAHB) is raising the tax to cover rising operating costs and finance airport expansion.According to this report, 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.
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.
According to sources, 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.
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.
The Malay Mail carried a report which quoted an unnamed source that said that Malaysia Airports Holdings Berhad (MAHB) has no plans to increase airport tax for domestic travellers at this point. Kong also told The Malay Mail that the increment had nothing to do with the recent merger between Malaysia Airlines and AirAsia.
“It has nothing to do with the merger because every airline, including Singapore Airlines and SilkAir, will have to pay the new tax. There is no ulterior motive behind the move," said the minister.
Bear in mind that 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.
For sure, any increase in this airport tax during the current economic climate would affect air travel negatively. Malaysians would not want to travel as much and even tourists would be deterred from returning to Malaysia, especially if they pay high airport tax and yet see disappointing standards of service/facilities at airports. Such a move would dampen travel momentum and negatively impact passenger growth. Of course if the airport service/facilities and standards of maintenance are HIGH, people would have no qualms about forking out more.
In another report, MATTA Fair Organising Committee deputy chairman Boris Chang said MAHB should focus on improving their efficiency adding that charges should be based on efficiency and not in tandem with charges of other airports.
At the MATTA Fair pre-event press conference, Boris Chang said, “Focus should be on running the management efficiently and if we still manage to gain a decent profit and still be on top of the world, charging less should not be an issue."
So if travel industry feel this way, one really wonders why it is necessary at this point of time to increase airport taxes.
Why do the rakyat ALWAYS have to bear the brunt of such decisions?
If you want your blood to boil, kindly read:
The Opportunists' Utopia
Ahah! Did we not say so? and the ten links in that report.
Nazri says Tajuddin intervention could save Putrajaya billions
When Politicians Plot, the Public Get Shafted
Excuse me, my blood is really boiling and I cannot think straight. I am completely outraged that the rakyat are scr**ed big time.
Arrrrghhhh!!! CHANGE IS IMPERATIVE!!! Please remember that! Your vote counts. Every vote! And all of us MUST make that difference to secure a massive swing in the right direction.
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