Friday 29 Mar 2024
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KUALA LUMPUR (March 8):  The government has decided to sign two new Operating Agreements (OAs) with Malaysia Airports Holdings Bhd (MAHB), instead of four as proposed in 2019, in order to enable more flexibilities in airport developments going forward, said Minister of Transport Anthony Loke.

Furthermore, Loke said the two OAs will allow MAHB to adopt a different business model that suits each airport — which vary in size and geographical conditions — that it operates under its network.  

“RAB (regulated asset base) is just one of the models [that should be adopted]. It can be any other model, so we do not fix that RAB must be implemented across the board, because not every single airport has the same features,” said Loke to an audience here at Invest Malaysia 2023.

“Not one model can fit every airport, so we are flexible on that, the OAs stated very clearly that every single project will have a discussion between MAHB and the government to look at the return model for MAHB,” he explained.

Loke said with such flexibility, the government does not have to sign four OAs as proposed in 2019 which categorise MAHB’s 39 airports in Malaysia into four clusters.

“Over the [past] few years, discussions were held, finally we stick back to two OAs. As far as the Ministry of Transport is concerned, what we want is more flexibility in terms of developing our smaller airports.

Under the current OAs, according to Loke, it is quite rigid. The OAs comprise agreements by the government for MAHB to operate the airports, but they do not cover items such as funding, capital expenditures and development of smaller airports.

At the investment conference, Loke also addressed several questions on the aviation sector, including the regeneration plan for the Subang Airport and air connectivity between Peninsular Malaysia, Sabah and Sarawak.

Although there were concerns that the redevelopment of the Subang Airport may worsen the surrounding traffic condition, Loke said there is a plan in place to revive the suspended KTM Skypark Link between KL Sentral and the Subang Airport after the latter’s regeneration plan is completed.

The services of KTM Skypark Link between KL Sentral and the Subang Airport were suspended in February.

“We know that it is very congested in that area, and the moment that airport is redeveloped, there is a rail link between Subang [Airport] and KL Sentral. For the next two to three years, upon redevelopment of Subang Airport, that [rail link] will be reused, that is one of the features that will make Subang a very viable city airport,” he said.

On air connectivity between Peninsular Malaysia and Sabah and Sarawak, Loke said the government will continue efforts to encourage more capacity in its bid to tame elevated air fares, instead of resorting to imposing a ceiling price.

“There are calls in terms of putting a ceiling price on the air fare, but this is not something that we are doing. The moment we put a ceiling price, it is not effective for the capital market, not attractive for the private sector, it will send the wrong message, because we adopt a market economy,” he said.

Edited ByKathy Fong
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