Thursday 28 Mar 2024
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KUALA LUMPUR (March 1): Malaysia Airports Holdings Bhd (MAHB) said the chief executive officer of its wholly-owned airport in Istanbul, Turkey is stepping down to facilitate changes in the airport’s management.

In a statement today, MHB said there is a need to shift to a more global perspective to create bigger opportunities for Istanbul Sabiha Gokcen International Airport (ISG).

“Gokhan Bugday has stepped down as CEO effective March 1 to make way for a new leadership to take on this new growth target,” it added, without immediately naming a replacement for the man who had served at ISG for eight years.

MAHB said the shift to a more global perspective entails changes across all segments of the business to ensure that ISG will continue to thrive and compete internationally.

MAHB managing director Datuk Badlisham Ghazali said ISG has a "huge growth potential", and it will continues to be a key asset for the group’s international expansion strategy.

“With the support from our recent and upcoming investments, we expect ISG to not only be a key contributor to the group’s sustainability, but also create further value to the Turkish economy and increase the country’s international appeal,” he said.

For the financial year ended Dec 31, 2016 (FY16), ISG registered a loss before tax of RM56.7 million versus profit before tax of RM29.9 million in FY15, despite a 4.6% rise in revenue to RM948.9 million from RM907.2 million.

Badlisham said in order to allow further growth in ISG, MAHB has invested to improve passenger transfer facilities between international and domestic.

“In addition, we also plan to invest further in increasing ISG’s current capacity by building a new boarding hall to cater for growing domestic traffic,” he said.

In 2016, ISG handled 29.65 million passengers, compared with 60.1 million by Istanbul’s largest international airport, Istanbul Ataturk Airport.

Badlisham said in line with MAHB’s international expansion strategy, management will continue to derive value from investment in ISG.

“With the support of the rapidly improving connectivity to and around ISG and the completion of the second runway in year 2018, we expect the airport to double its airside capacity,” he said.

MAHB’s share price rose one sen or 0.15% to RM6.49 today, giving the group a market capitalisation of RM10.77 billion.

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