KUALA LUMPUR (July 14): Malaysia Airports Holdings Bhd (MAHB) announced today that under the Sultan Abdul Aziz Shah Airport, Subang (LTSAAS) Regeneration plan, its Terminal 2 will be redeveloped into state-of-the-art hangarages for business aviation.

In a statement, MAHB said the plan is driven by demand from the local air transport players operating at LTSAAS, namely Berjaya Air Sdn Bhd and Smooth Route Sdn Bhd.

MAHB added that both Berjaya Air and Smooth Route have committed to taking up the additional space offered by the facility.

As such, the government's approval of the LTSAAS Regeneration plan is vital to vote to the expansion needs of these industry players, the airport operator added.

The terminal will be redeveloped into hangarages to accommodate the relocation and expansion of existing business aviation operator-tenants at the airport.

It was explained by the airport operator that the overall tenant relocation exercise will be done in phases to demolish old hangar structures and develop new ones as replacements, of which the redevelopment of the former Terminal 2 into hangarages will serve as the critical first phase of this tenant relocation exercise.

The new hangars will be developed to meet tenant operational needs, as well as be in full compliance with safety, security and authority requirements, MAHB said, adding that they will be designed and developed to meet global standards.

Additionally, the redevelopment will also result in a 280% overall capacity increase at the Subang Aerotech Park and will further the country's ambition to make LTSAAS the preferred aerospace and business aviation hub in the Asia-Pacific region.

MAHB's KLIA Aeropolis head Randhill Singh said the redevelopment plan for LTSAAS' Terminal 2 leverages Malaysia's current position as the fourth largest base for business jet fleet in the Asia-Pacific region.

"Our plan will act as a catalyst in growing the local business aviation market by almost threefold in the next 10 years, hence strengthening the position of LTSAAS as the business aviation hub for the region.

"Our internationally recognised Malaysian-based aviation partners here will be the key drivers in making LTSAAS an airport with a competitive aviation landscape. We are seizing this opportunity and remain fully committed to growing the aerospace and business aviation industry for the country," added Randhill.

Berjaya Air general manager Arthur Lee said the company is looking forward to the realisation of the LTSAAS Regeneration plan which will place Berjaya Air at the forefront of commercial air charterers, serving the travelling public for domestic and regional destinations via its ATR42-500 aircraft.

"Both leisure and business travellers can expect a seamless journey to Berjaya's hotels and resorts, particularly the regular air charters to The Taaras Beach & Spa Resort in the beautiful Redang Island and in the near future, Tioman island as well. The well-facilitated airport lounges have enabled Berjaya Air to offer private and upgraded services to our esteemed passengers through convenient check-in and boarding processes," said Lee.

Smooth Route general manager Vivian Mathews said that LTSAAS is a strategic location for business aviation given its proximity to Kuala Lumpur.

"We see a huge potential in the growth of business aviation in Malaysia and the region and we are indeed very excited about the collaboration. The plan which optimises the availability of space and state-of-the-art facilities will definitely help us in supporting Malaysia's Aerospace Blueprint 2030 initiatives.

"Smooth Route Sdn Bhd hopes to stand out in the region, competing with our neighbouring countries and to support Malaysia Airports in making LTSAAS a preferred hub for business aviation. We foresee the aviation sector to be a major contributor to the national economy in post-pandemic years ahead," said Mathews.

As the time of writing, shares in MAHB were trading 0.35% or two sen lower at RM5.71, valuing it at RM9.47 billion.