NEW CONTENDERS?
Govt will consider allowing private entities to operate airports, says Kamarudin
THE government may allow private entities to operate and expand airports in the country, says Deputy Transport Minister Datuk Kamarudin Jaffar. The move will spell the end of Malaysia Airports Holdings Bhd’s monopoly in the airport sector.
THE government seems set to shake up the airport sector with plans that will end Malaysia Airports Holdings Bhd’s (MAHB) monopoly.
Deputy Transport Minister Datuk Kamarudin Jaffar said yesterday the government would consider allowing private entities to operate and expand airports in the country.
MAHB holds an exclusive concession to manage 39 airports and short take-off and landing ports nationwide. Only the Senai International Airport in Johor is not in its concession.
However, MAHB’s monopoly is structural as it taps a handful of profitable airports to cross-subsidise other loss-making operations that provide vital rural connectivity.
“We are basically open to proposals,” said Kamarudin after the launch of Aerofile, an automated filing system for landing permit applications for commercial flights operating to or from Malaysia.
It is a multi-agency initiative led by the Malaysian Aviation Commission (Mavcom).
The proposed airport sector shake-up will be music to AirAsia Group’s ears as it has reportedly sought to reopen Terminal 2 of the Kota Kinabalu International Airport as a dedicated low-cost carrier terminal.
Analysts have said the prospect could spell trouble for MAHB beyond just losing one of its profitable airports.
“Principally, airlines should not operate an airport. But generally, we recognise that the Kuala Lumpur International Airport, among others, needs expansion,” said Kamarudin.
He also said the government was reviewing a proposal to cap airfares.
“We have not decided on the ceiling price of airfares. We are still discussing with Mavcom to get the best solution for passengers.”
Mavcom chief operating officer Azmir Zain said the commission had prepared a technical paper on the ceiling price, which was available on its website.
On other development, Mavcom said it expected air passenger growth of 6.5 to seven per cent to 105.6 million to 106.1 million passengers this year.