Airport Tax improve Could Be Suspended, Says OSK
2:23 PM
Charles dickens
, Posted in
"While we do not know what the discourses centered on, negotiations on passenger service charges may have been on the agenda.
Hence, there is a high probability that the rate hike could be suspended," said OSK in its research report Friday.
It was reported that MAHB would raise the airport tax on international passengers by RM14 to RM65 for all airports. For the low cost terminal, tax on international passengers will be raised by RM7 to RM32.
However, even if the higher airport tax for international passengers from KLIA and Kota Kinabalu's terminal is implemented, the move will have no upside impact on revenue and earnings for MAHB.
This is as the advised RM14 increase to be collected from passengers under the new rates, is currently being subsidised by the government.
Hence, once the tax hike gets, MAHB will be collecting directly from the passengers.
However, the higher tax on international passengers departing from the low cost terminal and Kota Kinabalu airport could potentially lift profit by RM43 million to RM45 million per annum, or 11.3 percent in 2012 financial year.
This is assumptive that there will be no income sharing with the government.
OSK also said that although the quantum of raise is rather substantial at 27 per cent and 28 per cent for the international low cost terminal and non-low cost terminal passengers, it would not substantially cramp passenger growth.
Furthermore, Malaysia's airport taxes are considered comparatively lower than those charged by airports in Thailand and Indonesia, which are seeing strong development in air travel despite their lower per capita income.
It was reported that MAHB would raise the airport tax on international passengers by RM14 to RM65 for all airports. For the low cost terminal, tax on international passengers will be raised by RM7 to RM32.
However, even if the higher airport tax for international passengers from KLIA and Kota Kinabalu's terminal is implemented, the move will have no upside impact on revenue and earnings for MAHB.
This is as the advised RM14 increase to be collected from passengers under the new rates, is currently being subsidised by the government.
Hence, once the tax hike gets, MAHB will be collecting directly from the passengers.
However, the higher tax on international passengers departing from the low cost terminal and Kota Kinabalu airport could potentially lift profit by RM43 million to RM45 million per annum, or 11.3 percent in 2012 financial year.
This is assumptive that there will be no income sharing with the government.
OSK also said that although the quantum of raise is rather substantial at 27 per cent and 28 per cent for the international low cost terminal and non-low cost terminal passengers, it would not substantially cramp passenger growth.
Furthermore, Malaysia's airport taxes are considered comparatively lower than those charged by airports in Thailand and Indonesia, which are seeing strong development in air travel despite their lower per capita income.
