MAHB: Over 75% of airports we handle not commercially viable

PETALING JAYA: More than 75% of the 39 airports operated by Malaysia Airports Holdings Bhd (MAHB) are not commercially viable, said the airport operator.
“These airports are managed on a cross-subsidisation model in order to provide the Malaysian people with the required connectivity among its smaller towns and rural outposts. Maintaining this network of airports has involved a huge outlay of both capital and operational expenses,” it said in a statement today in response to a media report on competition in the airport sector.
MAHB manages a network of 39 airports in Malaysia, comprising five international airports, 16 domestic airports and 18 short take-off and landing ports.
It noted that airport operations and management in Malaysia are done in a highly regulated environment and all aeronautical charges are entirely determined by regulatory authorities.
“In the case of MAHB, we are governed by the operating agreements we have with the Malaysian government which has stringent mechanism for revision of charges. It is also part of the operating agreements that these charges must be below regional levels,” it said, adding that it cannot introduce any ancillary charges unless decided by the government.
MAHB said, as a listed company, it has to sustain its business growth through a balanced cost and revenue model. Notwithstanding this, it has been supporting the growth of airlines operating in Malaysia throughout the years with low charges and incentive programmes.
MAHB was the top loser on Bursa Malaysia today, sliding 5.38% or 53 sen to RM9.33 with 12 million shares done.