Ground TransportationPresident of Malaysia’s agent association questions fairness of imposing charges for pick-ups and drop-offs on excursion buses and tour vans.

KLIA2’s entry fee ‘ripping off’ transport operators, says MATTA

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Transport operators are charged an entry fee for tourist pick-ups and drop-offs at KLIA2.
Transport operators are charged an entry fee for tourist pick-ups and drop-offs at KLIA2.

The transportation is managed by operator, Segi Astana Sdn. Bhd., which is in turn appointed by Malaysia Airports Holdings Berhad (MAHB). They are urging the Malaysian Transport Ministry to review the charges.

The Malaysian Association of Tour and Travel Agents (MATTA) has spoken out on the unfairness of implementing entry fee charges for excursion bus and tour van pick-ups and drop-offs at Kuala Lumpur International Airport 2, which came into effect on March 1.

The transportation is managed by operator, Segi Astana Sdn. Bhd., which is in turn appointed by Malaysia Airports Holdings Berhad (MAHB). They are urging the Malaysian Transport Ministry to review the charges.

“The imposition of entry fee charges to excursion bus of RM8 (US$1.91) and tour van of RM4 for picking up and dropping off of tourists at KLIA2 is ripping off transport operators with their so-called legal right in a monopolistic situation. Transport operators these days, especially the small- and medium-sized enterprises (SMEs), are struggling to sustain [their] business due to escalating costs in operation and reduced business volume,” said Datuk Tan Kok Liang, president of MATTA. 

He added that it was definitely unfair as there are no entry charges for picking up and dropping off tourists at Kuala Lumpur International Airport (KLIA) for the first 30 minutes, operated by MAHB on its own.

“Such differential pricing or profit-centric practices must be clearly justified to avoid exploitation. We have made an appeal to the said company to abolish the entry fee charges and exercise similar practices as in KLIA on February 12, 2019, but no update nor changes has been made,” explained Tan.

He pointed out that Segi Astana Sdn. Bhd. operates [email protected], including its retail space, multi-storey car park and transportation hub under a 25-year build-operate-transfer concession that will expire in 2037, with an option to extend for another 10 years.

According to a media report published on January 30, 2019, the credit profile of Segi Astana Sdn. Bhd. has improved, stemming from higher occupancy rate and improved car park fees collection that have led to stronger cash flow.

“For the first nine months of 2018, Segi Astana’s revenue [was] RM90.5 million with 86.8% growth occupancy rate for [email protected] and high passenger traffic of 30.3 million at KLIA2, compared with 28.2 million at KLIA. Based on Segi Astana’s strong financial accounts, is it necessary to collect entry fee charges for pick-ups and drop-offs [of] tourists at KLIA2?” questioned Tan.

“It may be your right to impose the charges but is it the right thing to do? It is perhaps timely to question the business ethics behind the charges for pick up and drop off tourists at KLIA2. MATTA is looking forward to the Ministry of Transport addressing and reversing  the monopolistic decision taken by Segi Astana Sdn. Bhd,” concluded Tan.


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