Malaysians planning for their vacation in 2018 should be ready to spend a little more than they expected. The airfare is going to increase next year.
Malaysian Aviation Commission (Mavcom) is planning to implement a few things from January 2018 due to which airfare will increase.
First, Mavcom is going to implement RM 1 levy on all passengers departing from Malaysia. This would come into effect from January 2018 onwards, once Malaysian Parliment passes the aviation bill.
On the account of the amendment bill being passed, Mavcom could bring around RM 21.81 million per year to the commission. According to a report by The Edge, the revenue was calculated. This would be very important for it because Malaysian government will stop funding the commission from next year.
Mavcom chief operating officer Mr Azmir Zain said that Mavcom is having a definite plan. According to this a passenger flying out of Malaysia will be charged RM1 as airfare levy. Passengers of Rural Air Services (RAS) in Sabah and Sarawak will be exempted from fee.
The bill has not yet passed. The first discussion started on 8th August and the second one is expected by October.
EQUALISATION OF CHARGES
As RM1 airfare levy might not be a major concern, the second thing will surely affect many. Mavcom is also trying to implement an outright equalization of the passenger service charge (PSC) amid all local airports.
So far, PSC charges were varied for each airport. At present, KLIA charges RM73 for international PSC irfaresnd KLIA2 charges RM50 which is cheaper.
Mr Azmir said that comparatively international PSC for places beyond Asean in KLIA2 is still lower. Charges could increase from RM50 to RM73 after complete equalization.
Mavcom has already raised international flight PSC this year. It is as follows.
- RM65 to RM73 for KLIA and other airports
- RM32 to RM50 for KLIA2
However, passengers flying out of KLIA2 could expect to pay more from next year.
“Even after this increase, Mavcom would make sure that the PSC remains among cheaper ones in the world” Azmir added. Meanwhile, he also agreed that passengers will not like an increase in ticket fares.
Meanwhile, Mavcom expects average air fares to continue decreasing this year. This could be because of a few reasons such as
- competition among carriers
- new facilities added to the industry
- number of air traffic rights allocated
This would make them think of creating new frequencies and destinations.
CAPITAL EXPENDITURE FOR AIRPORTS
Mavcom also noted that key airports in Malaysia require a capital expenditure to mainly address capacity requirements. These include airports in
- Kota Baru
- Kota Kinabalu
On the whole airfare tax is expected to rise in the forthcoming years which is not a good news for passengers.