No hike in airport tax for klia2

No hike in airport tax for klia2
Business & Markets 2013
Written by Fatin Rasyiqah Mustazaof theedgemalaysia.com
Tuesday, 20 August 2013 11:40

KUALA LUMPUR: The passenger service charge (PSC), or airport tax at klia2, will be the same as that of the low-cost carrier terminal (LCCT). Currently, the LCCT's PSC is RM32 for international passengers and RM6 for domestic passengers.

In contrast, the PSC for international passengers at the Kuala Lumpur International Airport is RM63, while domestic passengers are charged RM9.

According to Deputy Transport Minister Datuk Abdul Aziz Kaprawi, passengers will be getting a better airport terminal for the same fee. The LCCT in Sepang has been operational since December 2008.

"We would want to accommodate all levels or types of airlines. The industry has advanced to low-cost carriers that offer similar aspects to premium airlines … we have to meet the demand and growth of the aviation industry," he told reporters after a site visit to klia2 yesterday.

He said the LCCT's current PSC would be reviewed next year as it is still under the operating agreement between Malaysia Airports Holdings Bhd (MAHB) and all the airlines, even if klia2 has not begun operations.

Aziz said klia2 is on track to meet its revised completion date. All CONSTRUCTION [] is expected to be completed by April 30 next year to enable the new airport to begin operations on May 2.

"Overall, the construction is 92% completed, while the main terminal building is 96% completed," he said.

The deputy minister reiterated that the cost of building klia2 is about RM4 billion, which will commensurate with all the features that will allow it to handle up to 45 million passengers a year.

MAHB chief financial officer Faisal Mansor said the current construction cost is around RM3.1 billion. However, the final cost will only be known when the project is fully handed over to MAHB.

In comparison, Singapore's Changi airport has announced that it will take five years and S$1.2 billion (RM3.09 billion) to complete its new terminal for low-cost carriers, which will have a capacity of 16 million passengers a year.

"The klia2 project team and contractors are working together on completing the remaining work based on the targeted timeline while the team continues to closely monitor the progress of the contractors," said Aziz.

He said work components that are facing delays are reassigned to other third party contractors if the contractors responsible are not able to meet their deadlines.

Components that have been reassigned so far include work on the service road, the airport fire and rescue building as well as the baggage handling system.



This article first appeared in The Edge Financial Daily, on August 20, 2013.