Malaysia Airports Gets Clarity On PSC Implementation With Latest Ruling By High Court

SEPANG – The High Court today (18 July 2019), has ruled in favour of Malaysia Airports in the civil suits against AirAsia over unpaid passenger service charges (PSC) and late payment charges. With this recent summary judgment by the High Court, it provides clarity on the issue of passenger service charges implementation by the airport operator and airlines.  

In January 2017, the government of Malaysia gazetted the equalisation of passenger service charges at all airports in Malaysia and in January 2018, the equalisation of PSC for Non-ASEAN international passengers of RM73 came into effect. This meant that all airlines operating from both terminals at KL International Airport (IATA Code: KUL) will have to collect from passengers and pay the same amount of PSC to Malaysia Airports. 

According to Malaysia Airports group chief executive officer (CEO) Raja Azmi Raja Nazuddin, “We are pleased with this ruling as this means that not only are we able to collect the gazetted PSC amount but it also means that we can have an environment of fairer competition between airlines operating at these two terminals, as well as allow Malaysia to be better aligned to international guidelines, including with the International Civil Aviation Organisation (ICAO) principle of non-discriminatory pricing at airports.” 

The High Court had dismissed AirAsia’s striking out application and allowed summary judgments by Malaysia Airports be entered on AirAsia in the three suits against the company.