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MAVCOM will announce new Passenger Service Charges in September 2019

Announcement : Under the Malaysian Aviation Commission Act 2015 [Act 771], the Commission has been entrusted with the statutory role to determine the methodology as well as the charges for aviation services including the Passenger Service Charge (PSC). In setting the charges, the Commission is required to consider a set of criteria as prescribed in Act 771.

The Commission will introduce the Regulated Asset Base Framework (RAB Framework) to determine airport charges. In doing so, the Commission has been conducting a comprehensive study and has been working closely with all relevant Ministries and industry stakeholders including airlines, airport operators as well as the investment community since 2017.

The RAB methodology is a globally recognised cost-based mechanism and provides a sustainable funding model for airports, whilst also taking into account impact to airport users. As an outcome of the RAB Framework, the Commission will implement differentiated charges in accordance with the size, level of facilities and services available at the airports. This methodology will also free the Government of Malaysia (GoM) from subsidising airport operations as per the current practice.

The Commission is in the final stages of completing the exercise. The new rates will be announced in the next few weeks and gazetted for implementation effective January 2020.