Taking the First Step...
In 1991, the Malaysian Parliament passed a bill to separate the Department of Civil Aviation (DCA) into two entities with different spheres of responsibilities. DCA remains as the regulatory body for the airports and aviation industry in Malaysia whilst the newly created entity, Malaysia Airports, was established in 1992 to focus on the operations, management and maintenance of airports.
Malaysia Airports Holdings Berhad was thereafter incorporated as a public listed company in the Main Board of Bursa Malaysia Securities Berhad in 1999, which became the first airport operator in Asia and the sixth worldwide to be listed in a stock exchange. Malaysia Airports is the only airport company with such a diverse airport portfolio, putting it in a league of its own. Airports under our stable of operations range from 5 international gateways, 16 domestic airports, to 18 short take-off and landing ports (STOLports) that serves the rural and remote areas in Malaysia.
A Holistic Global Airport Company
Operating and managing the country's aviation gateways is a privilege that comes with the responsibility to ensure that the capacity of the nation's airports is adequate to support and enhance state and national competitiveness. Our core activities include the management, operation, maintenance and development of airports, both in aeronautical and in non-aeronautical component.
Aeronautically, Malaysia Airports' revenue base comes from the collection of passenger service charge (PSC), aircraft landing and parking fees, and other ancillary charges to airlines. Non-aeronautical revenue base is mainly derived from non-airport operations business and commercial activities, which includes duty free and retail operations, hotel operations, free commercial zone operations, commercial space leases and management of parking facilities in our airports nationwide. No other airport company in the world matches Malaysia Airports' business model and diverse portfolio.
This uniqueness has transformed Malaysia Airports into a holistic global airport company that provides comprehensive scope of services and skills.
Gateways to the nation
As the nation's flagship international gateway, KL International Airport (KLIA) is well-positioned as a key aviation hub for Southeast Asia. It boasts the flexibility to combine short-haul and long-haul connections with facilities that integrate both full-service and low-cost airlines' operations and geographic centrality with adequate catchment areas within four to five hours of radius flight time from KLIA.
We look beyond the present and into the future by setting the pace with Next Generation Hub, a concept to transform KLIA as the ultimate hub where the world of full-service airlines and low-cost airlines are unified. While KLIA Next Generation Hub is created to promote airlines interconnectivity at KLIA, the world's first purpose-built terminal dedicated for lowcost carriers, klia2, is set to be the standard bearer for other future terminal of its kind in the world.
The unique feature of Malaysia Airports is its vastly diversified airport portfolio, in which each airport is characterised by different operating requirements. While these airports serve the same purpose of providing connectivity, their operating requirements varies from the different commercial offering and growth prospects resulting in mixed financial performance. Over the year, we have been steadfast in growing our commercial activities that is essential in delivering strong returns to shareholders whilst enabling aviation charges to remain competitive and in turn driving further airport growth.
This has allowed us to cross-subsidise the smaller community airports and STOLports by the larger and more profitable airports around the country. Thus, by providing air travel to these rural and remote areas that has no proper road access we fulfil a very important corporate social responsibility.
Airport Management Expertise
Malaysia Airports expands its expertise in airport management and investment to other airports overseas, further diversifying its airport portfolio. Today, our overseas ventures spans as far as India and Turkey. These airports are the Rajiv Gandhi International Airport, Hyderabad, and the Indira Gandhi International Airport, New Delhi, in India, and the Istanbul Sabiha Gokcen International Airport in Turkey.
Malaysia Airports has also established global training centres that focus on providing airport operations and management, airport fire and rescues service, and aviation security courses to participants from across the Asia Pacific region as well as to all Malaysia Airports' employees. Our training facilities are also certified and recognised by the International Civil Aviation Organisation (ICAO), Airport Council International (ACI) and Department of Civil Aviation (DCA) Malaysia. The Malaysia Airports Training Centre (MATC) located in Penang is recognised as the ICAO Aviation Security Training Centre (ASTC) and MATC KLIA is recognised as the ACI Global Training Hub (GTH) for Asia Pacific region. Meanwhile, the Malaysia Airports' School of Airport Engineering in KLIA focuses on providing training to our employees.