[November 1, 2019 – Hong Kong] Airports Council International (ACI) Asia-Pacific considers it a matter of urgency to finalize the reform of the aeronautical charges regulatory framework in Malaysia to provide a stable perspective to the airport operator, who will incur significant infrastructure investments over the next years.

Applauding the transparent consultation process led by the Malaysian Aviation Commission (MAVCOM), ACI Asia-Pacific hopes the model will provide adequate incentives in infrastructure investments that are aligned with government objectives, especially in view of the critical transfer of risk of capital investment from the government to the airport operator.

In response to earlier consultations with MAVCOM, ACI Asia-Pacific stressed the importance of including some critical features in tailoring the new regulatory framework to the needs of the country, the aviation stakeholders and the communities they serve. In particular, the competitiveness of airports should be measured not only in terms of level of charges, but also in terms of quality of customer service. Any charging scheme should ensure recovery of all costs at the airport network level while providing for long-term economic sustainability within the network. Lastly, after nurturing a culture of dialogue and transparency between the parties involved, a gradual transition to a dual-till system should be contemplated from the second regulatory period.

Ms. Patti Chau, Regional Director, said, “Airports today are sophisticated, business-oriented service providers. Any regulatory intervention should be proportionate to the need of all relevant stakeholders. As the industry body representing the region’s airports, we advocate for the airport operator’s interests to be duly recognized. What is needed is a stable, consistent and proportionate economic oversight framework which facilitates timely investment in airport capacity.”