9 February 2023
Transport minister Loke Siew Fook says the Cabinet agreed to this as it will improve both airports’ marketability.
KLIA and klia2 will be rebranded as KLIA Terminal 1 and KLIA Terminal 2, transport minister Loke Siew Fook has announced.
Loke said the Cabinet agreed to this as it would improve both airports’ marketability and effectiveness, while allowing it to compete with other international airports in the region.
However, he did not say when this will be implemented, saying the government and Malaysia Airports Holdings Bhd (MAHB) would need to fine-tune their new operating agreement first.
“The government and MAHB will need to finalise and sign the 2023 agreement and other related lease agreements before the end of the first quarter of 2023,” he said at a press conference here.
Loke also said the Cabinet had agreed to new material terms under the operating agreement between Putrajaya and MAHB for the operation, management, maintenance and development of 39 airports and airfields in Malaysia until 2069.
He said the agreement would allow both the government and MAHB the flexibility to fund airport development costs.
“This will either be through the government’s development expenditure or through any suitable investment recovery model mechanism by MAHB.
“This will be subject to the mutual agreement of both parties with a weighted average cost of capital, which will only be determined when a project is to be implemented with the government’s approval.”
Loke added that an airport development fund would be established under this agreement and will not involve government funds.
Instead, he said, the funds would come from contributions from airport users, members of the public and airlines.
“Half of the passenger service charge (PSC) component, taken into account in the calculation of the user fee, will be channelled to the fund’s trust account.
“The percentage of PSC or other components in the user fee will be reviewed every three years,” he said.
Loke also said the operating agreement’s new terms would enable the government and MAHB to implement a more competitive commercial development plan, pointing out its potential to enhance the government’s income through revenue sharing.
He added that its implementation would allow MAHB to prepare a better long-term development plan for all airports under its purview.
It would also enable MAHB to help reduce the government’s burden by taking over the development costs of competitive airports in the future.
“This is expected to help boost the global competitiveness of the country’s airport transport services and revive the aviation sector for the benefit and well-being of the people.”
Source: www.freemalaysiatoday.com
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