KLIA airports get rebranded as KLIA Terminal 1 & Terminal 2

10 February 2023

The Malaysian government has agreed to rebrand Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (klia2) to KLIA Terminal 1 and KLIA Terminal 2 respectively.

In a press statement, Malaysia Airports managing director, Dato’ Iskandar Mizal Mahmood said the move will allow for more effective marketing of the airport’s services, thus strengthening KL International Airport’s position as a regional hub.

According to The Star, the move is expected to take place after the signing of an agreement between the government and Malaysia Airports Holdings by the end of the first quarter.

Minister Anthony Loke, Malaysias transport minister also echoed the same sentiments added during the press conference reported by The Star that the proposal to rebrand KLIA and klia2 are important for the commercial sustainability of KLIA and also the growth of airports throughout the country.

This change comes as part of the larger reforms aimed at relieving the government of its burden to build new airports or to upgrade existing ones. Loke said that even though KLIA was initially sponsored by the government, the continued requests for upgrades have weighed heavily on the government’s funds.

To combat this, an Airport Development Fund will be created in order to receive collate funds from the public, airport users and also the airlines.

This will be a “major shift in the funding model for the airports and will help to boost the growth of airports throughout the country, raise our global competitiveness and revive the aviation sector for the benefit of the people,” he added.

Meanwhile, MAHB has also obtained in-principle approval to operate, manage, maintain and develop 39 airports and STOLports until 2069. Dato’ Iskandar said that the new operating agreement is a reflection of the Government’s confidence in Malaysia Airports’ capabilities and “deep experience in managing and operating airports locally and international”:.

“This will ensure commercial sustainability and facilitate growth for the nation’s airports, which in turn will serve as an important economic development lever for Malaysia,” he said.

He added the new agreement gives MAHB the flexibility to “invest and reinvest in the modernisation and development of viable airports under fair and conducive commercial terms with a clear investment return mechanism.”

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