Aeronautical and Non Aeronautical Charges
1. Explain aeronautical and non-aeronautical charges
Kuala Lumpur International Airport provides the use of the facilities in the airport for both
international and domestic use clients will eventually bear their full and decent amount of the
expense of giving the air terminal. It is accordingly significant that air terminals keep up
records that give data sufficient to the necessities of the two air terminals and clients
Airport consists of aeronautical and non-aeronautical charge for the users to pay in order to
use the facilities. Aeronautical charge consists of passenger charge, landing charge, terminal
rentals, security charges and others.
These charges can be viewed in two different views. The first view is through the airlines as
they are required to pay charged which are related to the aircrafts such as the landing charges,
parking charges, navigation aid charges, boarding bridge charges or also known as the
aerobridge usage. There is also charges for noise or if there are any environmental issues
caused which is known as noise and environmental charges.
Another view is through the passenger as they have passenger charges, security charges,
flight transfer or transit charges. Which is also added to the aeronautical charges of the KLIA
airport.
The Non-aeronautical charge is one of a channel that the airport generate income. These
charges are related to the facilities around the airport but is it not related to any aeronautical
aspects. The charges are like for retail concessions, parking for cars and motorcycles, the real
estate incomes or rents from any lands owned, and even rental car concession can be a
channel to receive generate.
There are many other charges as such as advertisement made in the airport is a form of
income. Food and beverages sold, utilities recharges from the stores in the airport, fuel, and
aviation catering services can be all classified as non-aeronautical charges.
2. Describe how aeronautical and non-aeronautical activities (commercial) able to generate
affect airports profitability?
Both aeronautical and non-aeronautical charges is important to the airport because as it
provides profitability. These revenue is important to maintain and manage the airport to be
fully functional. Airport is also a type of business and in every business profit is very
important. Therefore, airports will charge airlines and passengers based on the fixed aspects
and at the same time making sure the airport is profiting after deducting the cost.
If the charges are not paid then the airport then it would be a deficit and a trouble for the
airport to manage the business and to run the airport smoothly. For example, Air Asia X was
sued for outstanding aeronautical charges, that outstanding would have affected the
profitability of the airport.
If any of these charges are not paid will affect greatly on the profitability of the airport
business.