Passenger service and airport charges are two different issues: Matta

He said PSC, also commonly known as airport tax, is the amount required to pay to the airport authority by the passenger and airlines are tasked to collect it along with the fares and their other services.

"Any changes in airport tax charged to the passenger will have no impact on the airlines' operating costs, including its profit or loss, as the revenue is not theirs at all.

"However, airlines will be affected by any increase in airport charges charged by Malaysia Airports Holdings Bhd (MAHB), such as for aircraft landing and parking charges," he said in a statement Tuesday.

Emphasising on the airlines' freedom to choose their operation bases, Hamzah said the companies could either operate from Kuala Lumpur International Airport (KLIA) offering premium service or no-frills at the klia2 low-cost terminal with a very distinct difference in facilities.

"Just like passengers pay lower fares to travel on budget airlines, they should also pay lower airport tax for using low-cost terminals.

"Airlines should not clamour for higher PSC at klia2 unless they have something to gain but this would come at the expense of passengers," he said.

The Domestic Trade, Co-operatives and Consumerism Ministry, he said, should keep a watchful eye on this to ensure that the differential between PSC charges at KLIA and klia2 was not removed.