Malaysia Airports rolls out 5-year road map

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) yesterday launched a five-year road map that will help it achieve 90% growth in revenue and earnings before interest, tax, depreciation and amortisation (ebitda), and 40% passenger growth by 2020.
The business plan, which is a follow-through of the airport operator's Runway to Success 2010-2014 blueprint, looks to increase passenger growth from 112 million passengers a year in 2015 to 155 million passengers a year in 2020, revenue from RM3.9 billion last year to RM7.5 billion in 2020, and ebitda from RM1.6 billion last year to RM3 billion in 2020.
MAHB projects that by 2020, Malaysian operations will contribute RM5 billion to revenue, while its international operations will bring in RM2.5 billion.
Contribution to ebitda by 2020, however, will be more proportionate, with RM1.5 billion from Malaysian operations and RM1.5 billion from international operations.
The current business plan includes four strategic priorities, namely elevating Kuala Lumpur International Airport (KLIA) as a preferred Asean hub, enhancing total airport experience for stakeholders, developing Aeropolis and increasing MAHB's international footprint.
In his presentation, MAHB managing director Datuk Badlisham Ghazali said the KLIA Aeropolis Plan will be launched on May 23, when details of the project, including phases of development for the 1,000ha site, will be shared.
In terms of funding, MAHB has outlined three models – concessions, joint ventures/partnerships and building on its own.
In terms of international growth, MAHB is targeting matured markets that are mostly in Europe as well as greenfield markets, particularly the Middle East and Asia Pacific.
On the Department of Civil Aviation's decision to raise air navigation flight charges, Badlisham said the industry as a whole requires a considerable amount of investments to take advantage of growth.
"It is getting more difficult without new money being put in. While the costs have gone up, the charges have not. We at the airport want the government to invest in their infrastructure, which is mostly in air traffic control.
"There's a lot more that needs to be done. Why? Because the airport and the airlines can control what is on the ground and in the aircraft but what we don't control, which is under the government's purview, is the airspace," he said.
Badlisham said the increase in fees will translate into better management of airspace for the airlines and better usage of runways for MAHB.
In terms of enhancing total airport experience, MAHB has identified more than 40 initiatives that will require capital expenditure of RM80 million over five years.