Looks like Malaysians planning their holidays for 2018 might want to up their budget a bit as it looks like it’ll cost more to fly out of Malaysia starting next year.
This is because a couple of things that the Malaysian Aviation Commission (Mavcom) is intending to implement starting January 2018, might end up increasing the price of your tickets.
The first is Mavcom’s intention to implement an RM1 levy on all travellers flying out of Malaysia the from January 2018 onwards, This would go into effect once an amendment bill to expand its powers is passed in Malaysian Parliament.
According to a report by The Edge, if the bill is passed, the RM1 levy implemented by Mavcom could bring in an estimated RM21.81 million a year to the commission. This would be crucial for it as the Malaysian government will cease funding the commission’s operations starting next year. “I can confirm there is a definite plan by
“I can confirm there is a definite plan by Mavcom to charge a RM1 levy to all departing passengers from Malaysia, with the exception of those flying the Rural Air Services (RAS) in Sabah and Sarawak,” said Mavcom chief operating officer Azmir Zain in a statement to The Edge.
The bill has yet to be passed though, with its first tabling done on August 8. The second reading is expected to be done in October, during the next Parliamentary session according to Azmir.
And while the RM1 increase might not be an issue for many, this second thing that Mavcom is currently intending to implement might raise your eyes a little bit more.
Mavcom is also looking to implement a complete equalisation of the passenger service charge (PSC) among all local airports next January.
What this means is that instead of varying charges for PSC being charged for different airports, it’ll be a standard fee for all Malaysian airports. For the moment KLIA is charging RM73 for international PSC while klia2 has a cheaper charge at RM50.
“The international PSC for destinations beyond Asean in klia2 is still lower in comparison with KLIA and other airports. A complete equalisation, which we are currently reviewing this year, will potentially result from [the current] RM50 to increase to RM73”, said Azmir.
As it is, Mavcom already raised the PSC for international flights from RM65 to RM73 for KLIA and other airports, and from RM32 to RM50 for klia2 this year. While charges for other airports will remain the same (at least for now), it looks like those flying out of klia2 can expect to pay more come 2018.
Despite the price increase, Azmir says that Mavcom would ensure that the PSC remains among the lowest rates in the world. That’s fine and all but, we’re sure not many travellers would appreciate an increase in ticketing prices.
Mavcom, however, does not think as it expects average air fares to continue declining this year. They attribute this to competition among carriers, due to new capacities being added to the industry and the number of air traffic rights allocated over the past six months. This would suggest new frequencies and destinations being created.
Hopefully, their optimisim on ticket prices will be a reality or else we might just need to cut back on a couple of holiday destinations come 2018.