MAHB ... Jan 2009

It is going ahead with its plan to build a low cost carrier terminal in Sepang despite news that Airasia Bhd, together with Some Darby Bhd, has proposed to start its own terminal operations near the existing airport.

Sources say So far, the government has not asked MAHB to scarp its plan to build a permanent LCCT at KLIA. It will be built as planned on the assumption that Airasia will be using the new terminal. The work on the LCCT could start early 2009.

In Dec 2008, the Cabinet gave Airasia and Sime Darby the greenlight to build a new LCCT in Labu, NS. But the approval is subject to various regulatory approvals. If Airasia gets the final nod from the government, MAHB will then decide on its next step.

Going Forward …

Will MAHB have a role in this new development if the new terminal goes ahead as plan? If not, how will it affect its business?

Estimates that MAHB may lose as much as RM80 million in revenue solely on passenger service and passenger service security charges. The figure will be greater if landing and parking charges are included.

MAHB is certainly the main loser but believe that the company will not merely sit back given the latest developments and will seek government compensation if the new airport is to be operated by Airasia on completion.
No airline in the world has its own commercial airport, thus MAHB and other airlines may cite anti-competition clauses against the new proposal.

The irony, is, if MAHB is already in the process of building a new LCCT, why did the government give its approval for another player to build one? Industry players say they have not seen MAHB’s approved plans for the new LCCT.

To recap, MAHB announced in 2008 that it had earmarked a site next to the KLCI satellite and main terminal building for a new LCCT with capacity to handle 30-35 million passengers a year. The LCCT will also offer better connectivity for passengers.

But all is not lost for MAHB as with some clarity on the long overdue financial restructuring plan following the government’s recent approval, the airport operator may have the necessary muscle to draw new airlines and grow its airports further.

Other link related to MAHB:
MAHB ... Sept 2008