MALAYSIA AIRPORTS TAKING ACTION ON ARREARS
28 August 2015
SEPANG - Malaysia Airports Holdings Berhad (Malaysia Airports) announces that more aggressive steps will be taken to recover overdue payments from airlines. The overdue payment is mostly related to Passenger Service Charges (PSC), which is a Government-regulated charge that the airlines collect in advance from the passengers by including the same in the ticket price paid by passengers. The PSC that is payable to Malaysia Airports when the passengers board their aircraft, is used for the maintenance and continuous enhancement of facilities and services at the airport for the passengers.
Malaysia Airports has been closely engaging with defaulting airlines on the collection of the arrears. This includes periodic reminders and letters to request payment. Malaysia Airports is now considering stronger measures such as issuing Letters of Demand and exercising its statutory rights and remedies, which include recourse under Regulation 177 of the Civil Aviation Regulations 1996 for defaulting airlines which, among others, stipulates that the licensed company may refuse to permit an aircraft to depart from the airport until the charges due have been paid.
In view of the long-term partnership with airlines, Malaysia Airports has been very supportive in the payment collection process.
“Many avenues have been explored in resolving the overdue payment issues. We hope that the affected airlines will reciprocate with greater cooperation in settling the overdue payments to us,” said Datuk Badlisham Ghazali, Malaysia Airports Managing Director.
“Aside from the reminders and official letters sent to the airlines, we have also engaged them on a face-to-face basis to work out amicable arrangements for payment,” he further added.
Malaysia Airports has always strived to maintain a supportive and mutually beneficial relationship with the airlines. It has also helped the airlines grow by providing over RM450 million in incentives over the years to the airlines operating at its airports. Its airport charges are also among the lowest in the region.