Thursday 1 June 2023

CANDIDLY SPEAKING: AGM of Malaysia Airports Holdings Berhad (AIRPORT)

The 24th AGM of AIRPORT took place today, during which comparisons were made between KLIA and other international airports, particularly Changi Airport in our neighbouring country, regarding amenities, operational efficiency, and cleanliness. How does a country with a population of less than 6 millions on a tiny island managed to host close to 70 millions of passengers pre-pandemic? 

The management of AIRPORT then explained that, to be fair, a departing passenger has to pay RM105 of passenger service and security fee plus RM38 of airport development levy to Changi Airport, while at Kuala Lumpur International Airport (KLIA), a departing passenger pays only RM35 of passenger service charge. 

I did a check, and the total payable to Changi Airport was actually close to RM200, or RM194.31 at the time of checking. 

CANDIDLY SPEAKING: Well, for a departing international passenger, the amount payable to Changi Airport is about 5.5 times the amount paid to AIRPORT. Despite this, over 100 airlines continue to operate at Changi Airport, while KLIA has 63 airlines including codesharing. 

Why does Changi Airport have the pricing power to fix the fees and levies at such high levels? This is something that the government and AIRPORT need to consider.

No comments:

Post a Comment