MAHB projects 7pc passenger traffic growth.

Date: 15 January 2013

MAHB projects 7pc passenger traffic growth.

MALAYSIA Airports Holdings Bhd (MAHB) is confident of achieving a 7.1 per cent increase in passenger traffic this year after recording five per cent growth in 2012. The increase is expected to be driven by preparations for Visit Malaysia Year 2014 (VMY2014) campaign, an anticipated increase in the region's travel demand as well as the country's economic growth.

MAHB managing director Tan Sri Bashir Ahmad Abdul Majid said promotional efforts for the VMY2014 are already in progress, while travel demand in the region is expected to increase this year.

The economy - an important element to sustain travel demand - remains in good shape with gross domestic product growth expected to be between 4.5 per cent and 5.5 per cent. The challenge, Bashir said, is to ensure that the additional capacity provided by airports and airlines is properly and fully utilised to cater for the increasing demand for air travel.

"All the parties involved must work together to enhance each other's potential. I think if we all work hand in hand, then the country's aviation industry will have a great future," Bashir said in an interview with Business Times recently.

In a recent statement to Bursa Malaysia, MAHB said passenger movements at its airports grew 9.9 per cent in November 2012 from the same month in the previous year, while in October, the growth was 7.7 per cent. During the month under review, international passengers grew at 13.1 per cent, while domestic passengers grew 7.1 per cent.

The airport operator is also confident that 2013 will be a good year for the aviation industry in Malaysia. Bashir said the aviation industry has a strong foundation for continuous growth. "We are very fortunate to have Malaysia Airlines (MAS) and AirAsia Bhd as our major airlines as both of them have done very well," he said.

Over the last couple of years, Bashir said MAHB, together with the government, has taken the initiative to increase airport capacity in many key cities such as Penang, Kuching and Kota Kinabalu, as well as at smaller airports such as Malacca, Ipoh and Sibu. There are also plans to increase capacity at other airports such as Sandakan.

Bashir added that the new low-cost carrier terminal, klia2, which is expected to start operations on June 28, will also provide the much-needed additional capacity for the growth of low-fare travel.

"This increase in airport capacity is important to provide room for growth not only for the country's airlines such as MAS, AirAsia, Firefly, MASwings and Berjaya Air, but also for the many foreign airlines that operate at our airports," he said.

Besides airports, local airlines' move to take new delivery of aircraft and expand their capacity by operating new routes and additional frequencies will encourage further growth in the industry. Last year, MAS announced the purchase of 36 new ATR 72-600 aircraft to expand operations of Firefly and MASwings. It has also added A380s to its fleet and is in the process of replacing its aircraft with newer ones.  Meanwhile, AirAsia has been continuously adding seat capacity and has also announced the purchase of 100 new Airbus A320s.

The entrance of Malindo Airways, which is expected to start operations by May this year, would also provide capacity growth, said Bashir. He added that this year, foreign airlines already operating here such as Emirates Airlines, Qatar Airways, Cebu Pacific Air and Mandala Airlines, will be adding more frequencies and new routes, while four new foreign carriers, including Air France, are expected to begin services at KLIA.  This is in addition to the seven new airlines that began operations into the country last year.

"We continue to offer the lowest aeronautical charges in the region and this provides a low-cost base operations for airlines in Malaysia, as well as those operating to Malaysia," he noted.

By Bilqis Bahari

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