KUALA LUMPUR: Analysts see the new passenger service charge (PSC) rates announced by the Malaysian Aviation Commission (Mavcom) on Monday as a delicate balancing act between maintaining the aviation sector’s growth and ensuring a fair investment return for Malaysia Airports Holdings Bhd (MAHB). International destinations excluding Asean countries will see rates increase to RM73 for KLIA and other airports while PSC for klia2 will be RM50. Currently, the rates for KLIA, klia2 and other airports are RM65, RM32 and RM65 respectively. He also believes the new rates will have minimal impact on AirAsia X Bhd (AAX) and AirAsia Bhd (AirAsia) as the increase represents about 2%-3% of the average fares for both the low-cost carriers (LCC). The new PSC rates announcement also removed uncertainty on the quantum of the increase.

Source: The Edge Markets November 02, 2016 01:56 UTC