KUALA LUMPUR (Feb 3): Malaysia Airports Holdings Bhd’s (MAHB) operating agreements for KL international Airport (KLIA), klia2 and other Malayisan airports have been extended by 35 years.

In a filing with Bursa Malaysia today, MAHB said the operating agreement for KLIA entered between the Malaysian government and MAHB and its wholly-owned subsidiary Malaysia Airports (Sepang) Sdn Bhd in February 2009, has been extended for an additional period of 35 years, from the existing 25 years to 60 years.

Malaysia Airports (Sepang) handles the management, operations, maintenance and provision of airport-related services in KLIA, Low Cost Carrier Terminal (LCCT) and Klia2 in Sepang.

Additionally, another operating agreement entered between the government and MAHB together with its wholly-owned subsidiary Malaysia Airports Sdn Bhd (MASB) in February 2009, was also extended by 35 years from the existing 25 years to 60 years.

MASB is involved in the management, operations, maintenance and provision of airport-related services in other designated airports in Malaysia such as four international airports (Pulau Pinang, Langkawi, Kuching and Kota Kinabalu), 16 domestic airports and 18 short take-off and landing ports (STOLports).

MAHB said the approval of the said extensions are subject to terms and conditions and a negotiation committee will be established to negotiate the new terms and conditions.

The committee will be chaired by the Ministry of Transport Malaysia and comprise members from the Ministry of Finance Malaysia, MAHB and other relevant government agencies.

Subsequently, MAHB said the new terms and conditions will be submitted to Cabinet for its consideration and approval.

MAHB’s share price went up by nine sen or 1.44% to RM6.34 today, giving it a market capitalisation of RM10.59 billion.