30 February 2023
The name change is to increase the marketability and efficiency of the airports.
Transport minister Anthony Loke has announced that the Kuala Lumpur International Airport (KLIA) and Klia2 will undergo a rebranding exercise which will include a name change.
The two airports will be known as KLIA Terminal 1 and 2.
However, he did not mention when this will be implemented because there is some fine-tuning that needed to be done under the new operating agreement.
He added that the operating agreement and other related lease agreements will be finalised and signed by the government and Malaysia Airports Holdings Bhd (MAHB) before the end of the first quarter of 2023, which is by 31 March.
According to Loke, the Cabinet approved this because it would increase the marketability and efficiency of the airports and enable them to compete with other international airports.
See Facebook post from the Ministry of Transport
As part of the operating agreement between the government and MAHB for the operation, management, repair, and development of 39 airports and airfields in Malaysia through 2069, Loke also stated that the Cabinet has agreed to new material terms.
The key highlight of this new operation agreement is that both MAHB and the government will have the flexibility in funding for the development cost of the airports.
“Either government development spending or any appropriate investment recovery model method by MAHB will be used to achieve this.” – Anthony Loke, Transport Minister
Loke also stated that the weighted average cost of capital, which will only be decided when a project is to be completed with the government’s consent, will be subject to the mutual agreement of all parties.
“In addition, the implementation of operating agreement (OA) 2023 will allow MAHB to help ease the government’s burden by taking over the development cost of competitive airports in the future. Moreover, MAHB can work together with any parties that is interested to invest in the development of the airports in the future.” – Anthony Loke, Transport Minister
An airport development fund that would not involve government fund would also be established under this agreement.
The trust account for the fund will receive half of the passenger service charge (PSC) component that is factored into the user fee computation.
“What is collected from the people will be channelled into the development of the airports.” – Anthony Loke, Transport Minister
According to Loke, this initiative of airport development fund will be a game changer in the development of airports in the country.
Source: www.therakyatpost.com
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