Decision on RM1 services charge only after Mavcom-CAAM merger — Loke

SEPANG (Jan 7): The decision on whether to continue with the RM1 regulatory services charge on passengers departing from airports in Malaysia will be made after the merger between the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM) is finalised.

Transport Minister Anthony Loke Siew Fook said no decision had been made yet on the matter.

"Once the merger takes place, we will make the decision on whether to continue with this charge or not," he told reporters after AirAsia's announcement on special late-night flights with low fares in conjunction with the Chinese New Year celebration here today.

Loke was asked if the government would allow CAAM to collect the RM1 charge currently imposed by Mavcom, after the two entities are merged.

It was reported that the government decided on the merger on Dec 12 last year, to enhance the role of CAAM and to bolster its financial position.

The merger process is expected to take more than six months, and until then, the two entities will operate as usual pending discussions and measures to repeal some of the existing legal provisions.

Among others, the merger will see Mavcom's main function transferred to CAAM, and CAAM will act as the main regulatory body, providing better service to the aviation industry.

The service charge issue has become controversial with several industry players claiming it was an unnecessary burden to passengers, while another party considered it to be justified as Mavcom was no longer funded by the government.

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