MAHB to break back into RM2b revenue in FY18

by KEVIN WONG / TMR file pix

Malaysia Airports Holdings Bhd  (MAHB) expects its revenue to hit the RM2 billion mark in this fiscal year 2018 (FY18) and an operating profit of RM200 million.

MAHB MD Datuk Mohd Badlisham Ghazali said the group has set a target revenue — earnings before interest, taxes, depreciation and amortisation of RM209 billion — with its Malaysian operations contributing some RM1.2 billion in revenue, and its Turkish operations RM880 million in revenue.

“We hope to break back into the Airport Council International Airport Service Quality top 10 ranking as we are currently at the 12th position.

“For our Malaysian operations, we expect to grow passenger movement by 6.3%, while our Turkish operations by 7.4%,” he told reporters after MAHB AGM at Sama-Sama Hotel KLIA yesterday.

Mohd Badlisham said the FY18 revenue target would be achieved from the restructuring of its airport  operations, as well as the airline marketing as MAHB has become more  proactive in working with tourism promotional agencies and attracting  new airlines to Malaysia.

“Last year, we have attracted 11 new airlines and we hope to attract an equivalent number to Malaysia, but what is more important is the destination and frequency.

“There will be a new service by Condor Airlines as it would be a direct flight between Kuala Lumpur and Frankfurt, Germany,” he said adding the carrier will begin flight at a later date of this year.

“MAHB has been working hard to attract European linkages into Malaysia, but the growth is in Asia and that  is why we are heavily focused on the region,” Mohd Badlisham said.

In order to attract new carriers,  especially low-cost carriers in Asia, MAHB has placed creative incentives for new airlines as it would defray their costs to make for easier passage into the country.

“We have also managed to save cost  because we are now turning our incentive from general growth into specific growth.

“This allows us to be more aggressive where we want to grow and where there is ready volume and thickness in the routes,” he said.

MAHB is still looking to invest in India’s aviation industry after disposing its entire 11% stake in GMR Hyderabad International Airport Ltd, which manages the Rajiv Gandhi International Airport in Hyderabad, India.

Mohd Badlisham said the airport operator is exploring business opportunities in India as the government has announced plans to set up 50 new private airports to increase regional connectivity.

“We are currently looking at about five airports in India, but the business model has yet to be finalised with our business partners,” he said without revealing any names.