MAHB operating agreements extended to 2069


MALAYSIA Airports Holdings Bhd’s (MAHB) operating agreements (OA) to run its airports has been extended for another 35 years until Feb 11, 2069.

MAHB group CEO Raja Azmi Raja Nazuddin said the extension signifies government’s trust in the airport operator in contributing towards the growth of the aviation industry and the country’s economic development.

“We are fully committed to continue developing Malaysia as a strong aviation hub within the region,” he said in a statement today.

The new OAs will replace the old ones which were signed on Feb 12, 2009. The previous agreements were for the Kuala Lumpur International Airport (KLIA); Sabah and Sarawak airports; as well as for designated airports in Peninsula Malaysia.

Raja Azmi added that a major difference between the previous OAs and the new ones are the clustering of airports according to regions.

“This is to ensure that the operation and management of airports in Malaysia can be made more sustainable in the long term.

“On top of that, the framework of the new OAs will also provide greater flexibility to MAHB in undertaking the necessary development projects or initiatives aimed at improving airport infrastructure and services, while providing the government with better revenue,” he said.

Moving forward, Raja Azmi said that MAHB has planned to increase its services and capacity.

“Plans are already in place to replace ageing assets, improve inter-terminal connectivity, increase and optimise airport capacity and digitalise the airport environment to provide better operational efficiency; improve service levels; and most of all continually delight our airport guests.

“For example, we are highly committed to making all our airports quality of service-ready by 2020,” he added.

Raja Azmi also said that several financing plans are being considered for various development initiatives.

“I am confident that these will be attractive propositions for the capital markets,” he said.

Earlier this morning, Transport Minister Anthony Loke had the extension of the MAHB’s tenure to operate KLIA and klia2, along with its 38 airports.

The government had also entered into four new OAs with the airport operator, including terms that open up opportunities for the private sector in development activities for the airports.