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Malaysia Airports Announces Airline Recovery Program

18 November 2009

Sepang, 18 November 2009 - Malaysia Airports Holdings Berhad (MAHB) wishes to announce the establishment of an Airline Recovery Program for the airlines operating at airports managed by MAHB in Malaysia. This program will be effective from this year for a period of three years.

"The basic incentive that we have always given to airlines is the low airport charges. Our airport charges are currently the lowest in the region, if not the world. It has been, and continues to be our intention to ensure that our airport charges remain low," says MAHB's Managing Director Tan Sri Bashir Ahmad. "This Recovery Program is an additional incentive on top of the low charges as our show of support to our airline partners through this recovery period," he added.

According to Tan Sri Bashir, Malaysia Airports were proactive in having a series of discussions with the Government, IATA and the airlines before finalising the program.

Under the Airline Recovery Program, new airlines flying into KLIA, KLIA-LCCT and the Sultan Abdul Aziz Shah Airport will receive an incentive payment of RM10 per inbound passenger for the first 12 months of operations. In order to promote tourism to other states in Malaysia, a higher incentive payment of RM25 per inbound passenger will be given to all new airlines flying international services to all other airports.

These new airlines flying into Malaysia will enjoy a waiver in landing fees for three years for each new service operated. Also included is free office rental for six months.

According to Tan Sri Bashir, other airports in Malaysia, such as Kota Kinabalu International Airport, Kuching International Airport, Kuala Terengganu Airport and Melaka Airport, have recently experienced a facelift and increase in capacity to handle more airlines. Soon, Penang Airport and Ipoh Airport will also be renovated and upgraded.

Under this Airline Recovery Program, existing airlines will also be entitled to incentive payments. Using 2008 as a base, MAHB's tier based incentive will award RM10 per passenger for the first 10 percent growth, RM12.50 per passenger for the next eight percent growth and RM15 for all additional passengers above 18 percent.

"This Airline Recovery Program will be funded by our commercial revenues which have been steadily increasing," says Tan Sri Bashir.

MAHB's Airline Recovery Program complements the Government's Economic Stimulus Plan for airlines. Under the Stimulus Plan, a 50 percent discount has been offered on all landings for all airlines at all airports in Malaysia for the period of April 2009 to March 2011.

"We already have in place low charges and a 50 percent rebate under the Stimulus Plan. Now, that traffic has stabilised and there are opportunities for growth, we feel that it is prudent of us to support our partners in the industry in their recovery," continues Tan Sri Bashir.

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