Experts unfazed by Changi’s tax rebates

By LIDIANA ROSLI

KUALA LUMPUR: The Kuala Lumpur Global

Airport (KLIA) may see “very little”

effect from Singapore’s Changi Airport doing

S$100 million (RM258 million) additional

money to reduce various airline taxes within

the city-state, analysts said.

It was documented that from July 1 this season

to June thirty 2015, all airlines operating from

Changi Airport can get rebates of 50 per cent

on aircraft parking fees and 15 per cent on

aerobridge fees.

Operator Changi Airport Group (CAG) is

offering the incentives to attract more airlines and increase passenger traffic.

“This move will have a small impact on

KLIA because what the company is offering now are

reductions on airplane parking fees and aerobridges,

which typically cost a few 10 per cent

or even less of airlines’ operating costs, ”

said a good analyst.

“If CAG really wants to hurt other airports,

it should look into reducing airport terminal tax (passenger

services tax), which weighs heaviest upon

ticket prices. It is going to definitely bring in more

passengers, ” said the analyst.

Another analyst can also be unfazed by the

move.

“The reduction is only for a specific timeframe

and CAG’s move is not distinctive. Other airports, including KLIA, have embarked on

comparable exercises in order to increase airline

participation. Will it increase traveler traffic

into Changi Airport? Yes. Will it hurt KLIA?

Only very somewhat, ” said the analyst.

Malaysia Airports Holdings Bhd (MAHB),

which operates KLIA, reported a 2 . one per cent

increase in traveler traffic to 6. 72 million within

May compared with six. 58 million in the same

period last year, while KLIA’s passenger movements

increased by one per cent.

MAHB said up to May, it handled 34. 1 million

passenger movements, up thirteen. 5 per cent

from your same corresponding period last year.

The company could not be attained for comment

by press time yesterday.


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By LIDIANA ROSLI

KUALA LUMPUR: The Kuala Lumpur International

Airport (KLIA) may see “very little”

impact from Singapore’s Changi Airport terminal committing

S$100 mil (RM258 million) additional

funds to reduce various airline taxes in

the city-state, analysts said.

It was reported that from July one this year

to June 30 2015, all airlines working out of

Changi Airport terminal will get rebates of 50 per cent

on aircraft car parking fees and 15 per cent upon

aerobridge fees.

Operator Changi Airport Team (CAG) is

offering the incentives to attract a lot more airlines and increase passenger visitors.

“This move may have a slight impact on

KLIA as what the company is offering right now are

reductions upon aircraft parking fees and aerobridges,

which typically price some 10 per cent

or less of airlines’ working expenditures, ”

stated an analyst.

“If CAG really wants to hurt other airports,

it should look into reducing airport tax (passenger

service tax), which weighs largest on

ticket costs. It will definitely bring in more

passengers, ” said the analyst.

Another analyst is also unfazed by the

move.

“The reduction is only for a specific timeframe

and CAG’s move is not really unique. Other airports, including KLIA, have embarked on

similar exercises in order to increase airline

participation. Will it raise passenger traffic

into Changi Airport? Yes. Will it harm KLIA?

Only extremely slightly, ” said the analyst.

Malaysia Airports Holdings Bhd (MAHB),

which operates KLIA, reported a 2 . 1 per cent

embrace passenger traffic to 6. 72 mil in

May compared to 6. 58 million in the same

period last year, whilst KLIA’s passenger movements

grew by one per cent.

MAHB said up to May, it handled 34. 1 mil

passenger movements, up 13. 5 per cent

from the same corresponding period a year ago.

The company could not be reached for comment

by press time yesterday.

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