MAHB Offers Incentive Payment Programme To Boost Passenger Arrivals

[flee 5]

KUALA LUMPUR, July 3 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) is looking at the prospect of further incentives for airport charges, says chairman Tan Sri Dr Aris Othman.

 

Aris said MAHB submitted the proposal to the government earlier this year and is waiting for an announcement.

 

"We are looking at rebates and benefits for airlines based on passenger growth," he told reporters after the graduation of 178 airport fire and rescue services staff.

 

Aris said there are already incentives to attract airlines, adding that "foreign airlines enjoy free landing and parking for three years since 2002.

 

"In April this year, we introduced 50 per cent discount for landing charges until 2011 for all airlines," he said.

 

"Our airport charges are the lowest in the region," he said.

 

He said MAHB also monitored incentives by regional airports to remain competitive.

 

Of the 39 airports managed and operated by MAHB, Aris said nine of them are profitable including five international airports -- KL International Airport (KLIA), Penang, Langkawi, Kuching and Kota Kinabalu.

 

As to the impact of H1N1 virus, he said for the period between January and June this year, passengers at KLIA recorded a 16 per cent drop in passenger volume while the low cost carrier terminal registered 29 per cent increase.

 

-- BERNAMA

 

Source: http://www.bernama.com/bernama/v5/newsbusiness.php?id=422714

[KK Lee 5]

As to the impact of H1N1 virus, he said for the period between January and June this year, passengers at KLIA recorded a 16 per cent drop in passenger volume while the low cost carrier terminal registered 29 per cent increase.

 

Either people who use LCCT are not deterred by H1N1 or people are leaving legacy airlines for LCC.

 

[flee 5]

It is understood that Malaysia Airports will offer new perks for airlines this week, including rewarding those that bring in additional passenger traffic to Malaysia

 

Airport operator Malaysia Airports Holdings Bhd (MAHB) (5014) is expected to announce this week a new set of financial incentives for airlines that fly out of the 39 airports it operates in the country, which will include rewarding those that show growth in passenger numbers.

 

This was revealed by MAHB managing director Tan Sri Bashir Ahmad at a Board of Airline Representatives (BAR-Malaysia) meeting on Friday, according to several sources.

 

BAR-Malaysia represents the majority of airlines operating at the KL International Airport (KLIA) in Sepang.

 

"At the meeting, he (Bashir) said the company will announce a new incentive programme for airlines this week, but did not give details," an airline source told Business Times.

The expected incentive programme is long overdue and will replace the current scheme, which expired in May 2007 but has since been extended.

 

According to industry sources, new foreign airlines and existing airlines that add new destinations or frequencies to KLIA and other airports in the country will continue to enjoy a waiver on landing fees under the new incentive programme.

 

"However, the duration of the waiver, whether it is three years or five years, is still being deliberated on, after which discounts on landing fees will be given ," one source said.

 

The current full waiver on parking fees will also likely to be withdrawn.

 

"Parking will be free for the first three hours, after which airlines will be charged based on the amount of time that their planes spend waiting to take off," the source added.

 

And for the first time, it is understood that MAHB will offer a new incentive to existing airlines to keep them operating through its airports.

 

"This new incentive will be available to all airlines, regardless of whether they are low-cost carriers or legacy carriers, and will be given to those that bring in additional passenger traffic to the country," another source said.

 

MAHB was earlier reported to have proposed that airlines get rebates on airport tax or passenger service charge for certain percentage growth they achieve in passenger load factor year-on-year.

 

"Any incentive is definitely welcome, but the proposed growth incentive scheme is not expected to ease the financial plight of airlines much as most are struggling to fill their planes today due to the global economic slowdown and the influenza A (H1N1) pandemic. But it should benefit carriers like AirAsia, which recorded higher passenger volume recently," the same airline source said.

 

In its filing to Bursa Malaysia on Wednesday, AirAsia had said that the group continues to expand market share as more people switch from full-service carriers to the low-cost carrier.

 

It saw its passenger volume rise 24 per cent in the second quarter of 2009 from the same period last year.

 

It was reported that for 2009, MAHB expects passenger numbers passing through its airports in the country to fall by up to 5 per cent from 47.45 million last year.

 

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/mahbo/Article/index_html

[flee 5]

November 18, 2009 20:18 PM

 

SEPANG, Nov 18 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) Wednesday introduced its airline recovery system which offers perks such as incentive payments of RM10 for each inbound passenger that new international airlines bring into Malaysia as well as free airport office rental for six months and free landing charges for three years.

 

Announcing the programme here today, MAHB managing director Tan Sri Bashir Ahmad said the company would have to forego RM25 million to RM30 million in revenue for the programme which would be effective for three years from January 1 this year.

 

These perks were applicable for international landings at Kuala Lumpur International Airport (KLIA), Low-Cost Carrier Terminal (LCCT) KLIA and the Sultan Abdul Aziz Shah Airport at Subang.

 

The airline recovery programme was in addition to the earlier 50 per cent discount given for all landings for all airlines at all airports in Malaysia between April 2009 and March 2011 under the government's stimulus package.

 

Bashir said the reward programme was aimed at attracting new airlines to bring in more passengers which would boost MAHB's coffers ultimately as well as help the badly-hit airline industry to recover from the global economic crisis.

 

As for the 54 or so airlines currently operating in Malaysia, he said they would be rewarded with an incentive payment of RM10 for the first 10 per cent increase in passengers, RM12.50 for the next 8.0 per cent and RM15 for each additional passenger above 18 per cent, using their passenger load volume in 2008 as the base year.

 

Describing the response by existing airlines to the reward programme as favourable, Bashir said it might be extended after 2011 based on the economic situation and MAHB's ability to provide more incentives.

 

"This is because MAHB's airport charges are most probably the lowest in the region and the world, so this is additional to all the rewards that we have given them earlier," he added.

 

Bashir also said that two new airlines have started operations in KLIA this year while two more would be coming by end of this year.

 

MAHB expects a four to five per cent increase in passenger growth this year and a three to four per cent increase next year from increased flight frequencies, he said, citing Iran's official airline Iran Air as among airlines which have increased flight frequencies to Malaysia.

 

Bashir reiterated that MAHB has never stopped any international airline from operating in any of its domestic or international airports.

 

"We have never done such thing but we have to admit that some of our airports are not sufficient to accommodate international flights. Other than that, we have no objection to them operating anywhere," he said.

 

Source: http://www.bernama.com/bernama/v5/newsbusiness.php?id=456289

[Kee Hooi Yen 0]

Which are the two new airlines already started operation in KLIA ? Air Astana & Air Niugini ? How about Egypt Air ?

[Ashmil Abd Ghani 0]

Under this programme look like more attractive to an airline instead of passenger...

 

So no matter how good the airline promote KUL as pax destination and able offer lowest fare and airport tax but dont have any good connection between flight and other related issue,,so I personally see that nothing much MAB can do to increase the pax volume in and out of KUL/WMKK.

 

Forego RM25 million to RM30 million in revenue only for 5% of increment in pax volume, seem like tak berbaloi. At same time wonder how much gov will subsidies KLIA this time. <_ . on another hand let wish klia able to achieve it. src="%7B___base_url___%7D/uploads/emoticons/default_rolleyes.gif" alt=":rolleyes:">

[Mohd Azizul Ramli 2]

MAHB mulls new airline incentive plan

Written by Sheikh Al-Zaquan Wednesday, 01 June 2011 11:44

http://www.theedgemalaysia.com/highlights/187475-mahb-mulls-new-airline-incentive-plan.html

 

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) may introduce a new incentive programme for airlines by year-end when the current programme expires.

 

Following MAHB’s results briefing yesterday, chief financial officer Faizal Mansor said, “The intention of the incentive programme is to reward airlines that give us growth, and it is offered to all airlines. We always say that airline incentives are the prerogative of the airport and we may introduce a new incentive programme that could be a slight variation on the existing programme.”

 

The incentives are provided under an Airline Recovery Programme (ARP) for airlines announced on Nov 18, 2009 and effective for three years ending 2011.

 

MAHB’s revenue from the aeronautical segment fell 0.3% to RM204.6 million for 1QFY11 ended March 31, as the accrual of airline incentives tripled to RM30 million from RM10 million last year. “Airport operations as a whole did not grow [in 1QFY11], and the main reason was the airline incentives,” said Faizal.

 

He estimates a payout of RM60 million to RM80 million in airline incentives for the full year, following the RM30 million distributed in FY10. The final payout will be handed out next year after a review of airlines’ performance in 2011.

 

“When we stop paying the incentives [under the current programme expiring in 2011], you will see that our growth in 2013 will be quite substantial,” said Faizal.

 

He said the existing incentive programme measures the performance of an airline against a selected base year, which varies among airlines. If there is growth in an airline’s performance compared with its base year, the airline is given RM10 to RM15 per passenger in the form of credit notes.

 

“Thus, even if the airline shows a marked decline on a year-to-year basis there may still be growth when compared with the base year. For the new programme, we will not use a base year and will measure growth on a year-to-year basis, similar to what is offered by other airports,” said Faizal.

 

MAHB’s net profit rose 20.4% year-on-year in 1QFY11 to RM88.1 million from RM73.1 million the year before, while revenue rose 22.42% to RM610.38 million from RM498.6 million on the back of a RM155 million provision relating to the construction of KLIA2 and the Penang International Airport.

 

The company adopted IC12 (Interpretation 12 : Service Concession Arrangements), an accounting treatment for “public-private” arrangements whereby a private sector operator is involved in the construction or upgrading of infrastructure assets to be used in public service. Stripping the effects of IC12, revenue rose 4.3% to RM455.16 million. Earnings per share increased to 8.02 sen from 6.66 sen.

 

MAHB recorded passenger growth of 11.9% in 1QFY11 as a total of 15.1 million travellers passed through its local airports. International passenger movements outpaced the growth in domestic movements, as the two registered a growth of 13.6% and 10.2%, respectively.

 

“Despite the natural catastrophes that had affected northeast Japan in March and the upheaval in the Middle East and North Africa, total passenger movements in KLIA improved by 12.4%, whereby both LCCT and KLIA-MTB recorded positive growth of 19.6% and 6.6%. All other airports recorded an aggregate growth in total passenger movement of 11.1%” said Faizal. Total aircraft movements rose 9.1% to 152,693 aircraft.

 

“Passenger movements are typically slower in 2Q and we expect them to pick up going into 3Q. We anticipate passenger growth of 7% to 8% for the full year in 2011. We see strong regional and global growth, and are quite optimistic,” Faizal said.

 

MAHB manages and operates 39 airports, of which five are international, 16 domestic and 18 short take-off and landing ports. It also has operations in India, Turkey and the Maldives.

 

Shares of the company traded at a 52-week high of RM7.02 following the announcement of its 1Q results, before closing lower at RM6.37.