IATA's Comments on PSC Irrational, Says MATTA

Kuala Lumpur, 9 September 2019 – The Malaysian Association of Tour and Travel Agents (MATTA) take exception to the statement issued by the International Air Transport Association (IATA) that airlines and passengers using Kuala Lumpur International Airport (KLIA) are losing out to other Malaysian airports with lower Passenger Service Charge (PSC) rates.

Its Regional Vice President for Asia Pacific Conrad Clifford said the government has created an uneven playing field for airlines from 1 October with the reduction of PSC rates, as well as cross-subsidisation of other airports or terminals by KLIA users.

He was reported to have said "While the reduction in the PSC for beyond ASEAN destinations is positive for most travellers in Malaysia, we are disappointed the government has chosen to discriminate against the airlines and 28 million passengers using KLIA.”

MATTA President Datuk Tan Kok Liang rebuts “Other international airports in Langkawi, Penang, Senai, Kuching and Kota Kinabalu cannot match KLIA’s standard. It would be unfair for passengers to pay KLIA rates when using other airports with lesser facilities.”

“There is no discrimination as airlines can choose to operate from any airport or terminal in line with their premium or budget service, and likewise passengers get to enjoy the same options. It is only fair for airlines and passengers to pay more for using KLIA and lesser at klia2, which was designed and built as a low-cost carrier terminal, and even more so for other international airports in the country,” reiterates Tan.

“The Transport Ministry ought to be congratulated for currently working on a framework to impose different rates for different airports according to their infrastructure. MATTA fully supports the decision to reduce PSC as facilities at these airports are of no match to KLIA standard, our premium airport”.

“We are fortunate the Cabinet has the foresight to steer our tourism industry towards the right path by charging reasonably for services and showing the way with PSC rates. Being the owner of all airports in the country, except Senai, our Government has taken into account all factors and have decided on the most rational decision”, concluded Tan.


President MATTA
Term 2019 – 2021