Wednesday, February 14, 2018

MAHB poised to tap growing aerospace industry

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is poised to tap the growing aviation-related industry after streamlining its businesses through the setting up of two subsidiaries.

Managing Director Datuk Badlisham Ghazali said for its overseas foray, the airport operator would set up Malaysia Airports International by end of this quarter.

"We're putting all international assets under this subsidiary and will be looking for more opportunities overseas, either by taking a stake in other companies or providing services ourselves," he told Bernama in an interview.

Badlisham said its maintenance, repair and overhaul (MRO) and land development portfolios, meanwhile, would be placed under another subsidiary, KLIA Aeropolis Sdn Bhd.

"It will house all our land development assets as well as aviation support and logistic businesses. This will be realised latest by the first or second quarter of this year," he said.

Badlisham said following this, MAHB would have three lines of business: airports operations in Malaysia, the aeropolis (airport city) business and the international business.

MAHB ranks among the world's largest airport operators in terms of the number of passengers handled.

It manages and operates 39 airports in Malaysia and an international airport in Istanbul, Turkey.

It also provides airport management and technical services for the development, operation, maintenance and management of overseas international airports.

"All that would be structured this year. There\'ll be great times for MAHB ahead," he added.

According to Badlisham, Malaysia is in a strong position to seize the new opportunities in the aviation business, either in manufacturing, MRO or services.

"A lot of companies - either new companies or those seeking to expand - are looking at Asia-Pacific. They are looking for locations for specific sectors.

"For Subang, we're looking at tier 1 and tier 2 players. Not only is the location near the airport but also the ecosystem of other players that it supports. The tier 2 players will supply to the tier 1 companies, which in turn will supply to the main manufacturers both regionally and globally," he said.

MAHB is also involved in the masterplan created by the Ministry of International Trade and Industry to drive the aerospace industry\'s growth - the Malaysia Aerospace Industry Blueprint 2030.

"We want to build Malaysia as the aerospace hub for Asia-Pacific. The key part is how to redevelop Subang as well as we have developed KLIA."

"We are not only an airport operator in Malaysia, but have also been tasked to develop the land around the airport," he noted, adding that an area about 25 hectares in Subang remained for the last phase of redevelopment.

It is best suited to support the aviation industry; therefore, getting the right type of investment is crucial, not only to serve current customers but also tap the growing opportunities across the region, with aircraft delivery here expected to double in the next 20 years.

"A lot of aerospace players already like Malaysia because of the availability of land and industry development programmes. What they want to see is the execution," he said.

Meanwhile, MAHB is waiting for a report from the International Air Transport Association (IATA), which it commissioned to do a study on its infrastructure and operation.

"It is an eight-month work. Recommendations arising from that study will be presented this month," Badlisham said.

MAHB tried to balance between the IATA growth forecast and the growth of MAHB's infrastructure, he explained.

The company has allocated half a billion ringgit for airport automation and expansion over the next 12 months.

"We are also going to complete our expansion of the Langkawi International Airport, costing about RM80 million in August. Another RM500 million will be spent to expand the Penang International Airport to boost its annual passenger capacity from 6.5 million to 12 million and the two-year project will start at the end of the year."

"We're also expanding the airport in Kota Bharu, which will cost about RM470 million, over the next three years. So many other projects are being done. Malaysia doesn't lack plans in upgrading its infrastructure," he added.

Badlisham said the upgrading and expansion activities involved not only the physical infrastructure but also other facilities involving other agencies to increase resources, such as the Department of Civil Aviation, the Customs Department and the police.

Source: Bernama | Business | 13 February 2018

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