Non-profitable airports to stay, says MAHB
It is part of MAHB’s social obligation to keep them going as they connect communities, says MD
MALAYSIA Airports Holdings Bhd (MAHB) does not have any plans to dispose of its nonprofitable airports. “We will not dispose of any non-profitable airports. It is part of our concession with the government. Some of the airports are not profitable because we consider them as social obligation, or community connecting airports,” said managing director Datuk Badlisham Ghazali recently.
There were not enough passenger traffic and flights at these non-profitable locations, said Badlisham.
“For example, the airport in Bario, Sarawak, has only three flights a week. It uses small planes that can only carry a dozen people.
“It is a small plane but it is necessary to connect the community to other parts of Sarawak as well as Peninsular Malaysia,” he added.
On airports operating beyond their capacities, Badlisham said it would cost millions of ringgit in investments to enhance them.
He cited as examples the Sultan Abdul Aziz Shah Airport in Subang, Sultan Ismail Petra Airport in Kota Baru, Miri Airport, Penang International Airport, the Kuala Lumpur International Airport, Kota Kinabalu International Airport as well as the Kuching International Airport.
“These are major international airports that require some form of investments,” he said, without disclosing the exact investment cost.
Badlisham said in the past the government was responsible for providing funding to upgrade airports.
“However, we try to be creative. For the one airport in Langkawi — we are not waiting for funding from the government. MAHB will initially spend its own money in Langkawi. The upgrade will start this month,” he said.
Badlisham said MAHB would let the government decide on which new airports to operate.
“We are the airports operator for the government, granted by the concession,” he said.