Friday 29 Mar 2024
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KUALA LUMPUR (Oct 6): A new foreign airlines operator is expected to introduce a new direct flight to Pulau Langkawi by the end of the year, according to Malaysia Airports Holdings Bhd (MAHB).

MAHB managing director Datuk Mohd Badlisham Ghazali said it is currently in discussions with three foreign operators for the route, but did not reveal more.

"We have talked to three foreign carriers already. They come from Asia and Europe. I think we'll see a new direct flight coming up this year," he told reporters at the sidelines of the Khazanah Megatrends Forum 2015 today.

According to Badlisham, a number of foreign carriers fly to Malaysia via other countries.

"So, rather than get them to come from their original country, we'll see whether they can extend flights from the Asian countries into Langkawi.

"These are some of the things we are discussing with the foreign carriers. It seems possible, as it's just an extension.

"They're already in some of the Asian countries, but not Malaysia. We will work with them and their governments to allow them to fly to Langkawi," he said.

He said the move was to promote Pulau Langkawi as the world's preferred tourist destination.

"The government, including Malaysia Airports, has provided for an incentive to assist in making Langkawi a tourist destination beyond its capabilities today. The incentives are open to all airlines, not just AirAsia," he said.

Currently, there are six airline operators that provide direct flights to Pulau Langkawi, namely AirAsia Bhd, Malaysia Airlines Bhd, Malindo, Firefly, Silk Airways and Tiger Air.

However, Badlisham sees the introduction of the new route to have minimal financial impact on the company's performance ahead, as the Langkawi airport accounts for only a small portion of its earnings.

In 2014, the Langkawi International Airport recorded 2.22 million in total passenger traffic.

Meanwhile, on AirAsia's RM409 million claims against MAHB relating to Kuala Lumpur International Airport 2 (klia2), Badlisham said the company is maintaining its stance on the issue.

"They made the claim, we've replied to them. Our response is that the claim is baseless and without merit. So the ball is in their court, if they want to take any other action.

"We are taking care of what needs to be done at klia2 now. Hopefully we'll focus on those items rather than these claims," he said.

MAHB's shares closed at RM5.36 today, up 13 sen or 2.49%, for a market capitalisation of RM8.69 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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