GEORGE TOWN: The Government's decision to reduce the passenger service charge (PSC) for non-Asian flights in all airports including at the Kuala Lumpur International Airport 2 (KLIA2) is a right move.
"Reducing the PSC from RM73 ro RM50 is correct and a move in the right direction", the Malaysian Association of Tour and Travel Agents (MATTA) said here Tuesday.
Its President Datuk Tan Kok Liang (pic) said it is unfair to the passengers to pay RM73 if airport facilities are not at par with that of KLIA.
"It is fair to pay RM73 at KLIA because of the superb facilities offered to the public", he said in a statement.
Tan was responding to the International Air Transport Association (IATA) which recently said the lower PSC was unfair to airlines and travellers flying out of KLIA.
IATA represents some 290 of the world's airlines or 82pc of total air traffic.
Its Asia-Pacific regional vice-president Conrad Clifford said on Monday that the KLIA main terminal would lose out to ther airports due to its higher PSC.
He also called the government's move a snub to the Malaysian Aviation Commission which is in charge of setting airport charges.
"If the intention is to offset the increased charges due to the departure levy introduced on Sept 1, the more straightforward way is to remove the departure levy altogether", Clifford said.
Tan said IATA's statement was iirational.
"We fully support the decision to reduce the PSC as facilities at these airports are of no match to standards of KLIA, our premium airport.
"It is fortunate that the government had the foresight to charge reasonably for services and show the right way with the revised PSC rates", he said.
On Aug 30, the PSC was revised downwards from RM73 to RM50 at all airports except KLIA. The revision will take effect from Oct 1.
PSC rates for flights to Asean countries will remain at RM35 while the RM11 charge for domestic glights remains unchanged.
The RM73 PSC was made a flat rate for all international flights out of the country's airport on Jan 1, 2018.