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Economy

Critics attack Malaysia's plan to hike airport tax

AirAsia and opposition party criticize move, fearing impact on arrivals

Budget carrier AirAsia cried foul against the move to raise passenger service taxes at KLIA2 to the same level charged at main terminal KLIA used by full-service carriers.   © Reuters

KUALA LUMPUR -- The Malaysian government's recent announcement to impose higher passenger service charges at Kuala Lumpur International Airport 2 or KLIA2 from January has been met with brickbats from several quarters.

PSC are aeronautical charges levied on departing passengers at all international airports, as part of flight fares. AirAsia, which uses the budget airline terminal as its regional base, is up in arms over the move to bring KLIA2 in line with taxes charged at the main KLIA terminal used by full-service carriers to 73 ringgit ($17.90) for each outward journey, from 50 ringgit now. PSC for domestic flights are 11 ringgit each. 

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