Thursday May 24, 2007

PUTRAJAYA: Airport taxes at the country's low-cost carrier terminals (LCCTs) in Sepang and Kota Kinabalu will be slashed, for both domestic and international travels, from June 1.

For both the LCCTs in Sepang and Kota Kinabalu, the airport tax for domestic travel will be reduced from RM9 to RM6.
For international travel, the airport tax will be reduced to RM25 from RM41 (at the LCCT in Sepang) and from RM51 (Kota Kinabalu).

Airport charges at the KLIA main terminal and other airports in the country would remain at RM9 for domestic passengers and RM51 for international passengers.

Transport Minister Datuk Seri Chan Kong Choy said the new rate would be applicable to other LCCTs the Government will build in the future.

He said the move would enhance Malaysia’s potential as a hub for low-cost carriers in Asia, as it would make airfares and flights more affordable.

“This new airport tax – also known as passenger service charge – will be inclusive of security charges,” he told reporters after the weekly Cabinet meeting here yesterday.

“I believe the move will make Malaysia’s LCCTs the cheapest in the region,” Chan added.

He said the new rate would make it more on par with the level of facilities and services currently offered at the LCCTs now.

“For instance, the LCCT does not offer the services of aerobridge for passengers boarding planes, which can be inconvenient when it rains.”

The Government, he said, was confident that the new rate would translate into an increase in the volume of passengers using the LCCT.

On Tuesday, Deputy Prime Minister Datuk Seri Najib Tun Razak said that there would be significant reduction in airport tax for international flights flying from LCCTs in the country.

Najib had said the move was to make the LCCT “a separate cost centre.”

On the possibility of reduction in the parking and landing charges for airlines, Chan believed AirAsia, which flies mainly from the LCCT in Sepang, had put in a request to the Malaysia Airports Berhad.

“At present, there is no change to both the parking and landing charges. The ministry is encouraging them to discuss the matter before they refer it to the ministry,” he said.

Chan declined to comment on a statement by Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor that Firefly would be allowed to operate from the Sultan Abdul Aziz Shah Airport in Subang.

(News extract from: The Star Newspaper)