New airlines flying in will be given three years of free landing
It plans to attract more airlines to Malaysia
MALAYSIAN AIRPORTS HOLDINGS BHD CHIEF FINANCIAL OFFICER FAIZAL MANSOR
SEPANG: Malaysian Airports Holdings Bhd (MAHB), which posted a fourth-quarter net profit of Rm122.9mil, is in discussions to get more airlines to fly into Malaysia.
The airport operator has allocated Rm70mil as growth incentives for airlines and is looking at a new set of incentives after the existing programme has run its course.
“We will like to see some form of incentives. New airlines flying in will be given three years of free landing,” chief financial officer Faizal Mansor told a briefing yesterday.
He said MAHB would be awarding the tender for KLIA2 concessionaires in April.
“We will be awarding it phase by phase.” MAHB will be conducting a briefing today to update on the KLIA2 tender process.
During the briefing, MAHB announced its net profit rose marginally to 11.17 sen per share for the quarter ended Dec 31, 2011, up from Rm121.9mil, or 11.08 sen a share, in the previous corresponding period.
Its revenue for the quarter increased to Rm837.4mil against Rm820.6mil a year ago.
For the full year (FY11), MAHB’S net profit jumped to Rm401.1mil from Rm316.7mil previously. Revenue for FY11 was Rm2.75bil.
Its aeronautical revenue was at Rm889mil while non-aeronautical revenue stood at Rm897.8mil.
Faizal said 2011 was a challenging year for MAHB, especially with the eurozone debt crisis, turnmoil in the Middle East and the tsunami in Japan.
“We have also some good news. Our passenger service charge has been revised. Male International Airport operation has also contributed Rm20mil in 2011.”
He acknowledged that 2012 was going to be a challenging year but has forecast passenger growth at between 6% and 7%.
Its passenger movement grew 10.7% in 2011 to 64 million at its 39 airports in the country.
On getting more flights into Malaysia, Faisal said there were currently about 60 airlines that flew to Malaysia and more might come.
Faizal said MAHB was also having an “on-going” discussion with Russian’s S7 airline to commence flights to Kuala Lumpur.
During 2011, MAHB had adopted IC Interpretation 12: Service Concession Arrangement which recognises the construction revenues andcosts in accordance with FRS111: Construction Contracts by reference to the stage of completion of the construction works of KLIA2 and Penang International Airport. In 2011 and 2010, MAHB recognised the construction revenues and costs in relation to KLIA2 and Penang International Airport amounting to Rm820.5mil and Rm782.3mil respectively.
Stripping out the IC 12 effects, MAHB’S revenue for 2011 would be Rm1.93bil while pre-tax profit would be Rm535.9mil.