The new international passenger service charge from Nov 15 will benefit Malaysia Airports Holdings Bhd (MAHB) as it will raise the airport operator's overall revenue, with no extra cost, says an investment bank.
Hong Leong Investment Bank, however, said there will be a minor negative impact for MAS and AirAsia as they are directly impacted from the higher aircraft parking and landing charges.
"Again, we reckon that MAS and AirAsia are likely to pass on the additional cost to their customers. Additional cost for AirAsia's passengers is at 45 sen per person and MAS at 64 sen per person," it said in a statement today.
Although there might be concerns on the potential impact to the overall air travel demand, the research firm reckoned the additional cost of between RM8 and RM15 per trip, was very marginal and unlikely to have significant impact on demand.
This view was also shared by MIDF Research, which said the international charge upward revision brings non-low cost carrier terminal's (LCCT) passenger to the benchmark level of RM65 as per the operating agreement signed between MAHB and the government in February 2009.
In a saperate note, MIDF said despite the rate hikes, MAHB's new charge and aircraft landing and parking charges are still comparatively lower than most airports globally and in even neighbouring countries.
Meanwhile, OSK Research Sdn Bhd said the hike was a surprise as the research house had earlier anticipated that it has been put on hold by relevant ministries subsequent to the recent collaboration formalised between MAS and AirAsia.
"Nevertheless, we opin that the hike for aircraft parking and landing is timely, noting that these rates have not changed for 17 years and are one of the lowest in the world," it said in a research note today.
Another research firm, HwangDBS Vickers Research, said it saw the new charges as a pleasant surprise.
"We continue to like MAHB for its long-term earnings potential from its cash-rich airport concessions, land developments and overseas investments," it added. All four research houses maintained their "buy" call on MAHB. -- Bernama
Hong Leong Investment Bank, however, said there will be a minor negative impact for MAS and AirAsia as they are directly impacted from the higher aircraft parking and landing charges.
"Again, we reckon that MAS and AirAsia are likely to pass on the additional cost to their customers. Additional cost for AirAsia's passengers is at 45 sen per person and MAS at 64 sen per person," it said in a statement today.
Although there might be concerns on the potential impact to the overall air travel demand, the research firm reckoned the additional cost of between RM8 and RM15 per trip, was very marginal and unlikely to have significant impact on demand.
This view was also shared by MIDF Research, which said the international charge upward revision brings non-low cost carrier terminal's (LCCT) passenger to the benchmark level of RM65 as per the operating agreement signed between MAHB and the government in February 2009.
In a saperate note, MIDF said despite the rate hikes, MAHB's new charge and aircraft landing and parking charges are still comparatively lower than most airports globally and in even neighbouring countries.
Meanwhile, OSK Research Sdn Bhd said the hike was a surprise as the research house had earlier anticipated that it has been put on hold by relevant ministries subsequent to the recent collaboration formalised between MAS and AirAsia.
"Nevertheless, we opin that the hike for aircraft parking and landing is timely, noting that these rates have not changed for 17 years and are one of the lowest in the world," it said in a research note today.
Another research firm, HwangDBS Vickers Research, said it saw the new charges as a pleasant surprise.
"We continue to like MAHB for its long-term earnings potential from its cash-rich airport concessions, land developments and overseas investments," it added. All four research houses maintained their "buy" call on MAHB. -- Bernama
