Malaysia confirms plans to hike airport taxes

Kuala Lumpur

MALAYSIA has confirmed plans to raise the air travellers' passenger service charge (PSC) effective Jan 1 in a move that is likely also to standardise the charges between KLIA and KLIA2, to the detriment of budget carrier AirAsia group.

Transport Minister Liow Tiong Lai on Thursday confirmed the impending hike to the PSC - also known as airport tax - but not the quantum which he said would be announced by the Malaysian Aviation Commission (Mavcom) at a later date.

But he assured the new charges would still be significantly lower than…