He said DCA’s “maximum one-fold” air navigation facility charges (ANFC) hike would only cost a “small fraction” to the airlines, adding that the new fees would be the minimum the government could go.

ANFC, which involved charging airlines that fly into Malaysian airspace by nautical mile, have not been revised since 1970.

DCA operates yearly with a 250 million ringgit (US$64.06 million) budget but only makes 50 million ringgit from its fees. The remaining 200 million ringgit is subsidised by the government.

Liow reiterated that any hike in DCA’s charges would be done with the engagement of airlines and in stages over a number of years, depending on how ready the airlines were for it.

In return, DCA would further improve its services for the airlines, by cutting down on waiting time in the skies and allowing them to choose their routes, which could save them fuel.

“It’s a win-win situation,” he told reporters before a dinner with members of the Institution of Engineers Malaysia in Bandar Sunway yesterday.

The airlines, said Liow, would know what year and what time the fees would go up so “they can plan for it”.

On whether airfares were expected to go up in tandem with the DCA fee hike, Liow said: “It’s only a one-fold increase. There shouldn’t be any hike in airfares. I think it won’t have much impact on the fares.”

He noted that there were many factors that affected ticket prices, like fuel cost and supply and demand.

“It’s not one factor that causes airlines to up their fares,” he added.

Earlier in George Town, Liow said the federal authorities were hoping that the Penang government would cooperate towards the expansion of the Swettenham Pier Cruise Terminal.

“The port is important as it can attract a lot of cruises and tourism.

“We hope the state could provide us with the land,” he told a press conference after meeting Penang MCA leaders.

He added that there was a need to strengthen the Penang Port to be part of the national port alliance with China.

He said the Trans-Pacific Partnership Agreement would ensure the continued growth of the Malaysian economy.

(US$1 = 3.90 ringgit)