MAHB aims 86 million passenger traffic for Malaysia operations this year

Airport operator Malaysia Airports Holdings Bhd (MAHB) expects passenger traffic for its Malaysia operations to record 86 million movements this year, 2.5 per cent above 2015 passenger numbers.

Managing Director Datuk Badlisham Ghazali said MAHB ended 2015 with a 0.5 per cent growth, so the projection of 2.5 per cent also took into account what is happening with national carrier Malaysia Airlines.

"The impact of Malaysia Airlines' restructuring on MAHB at KLIA is about 10.9 per cent reduction in total passengers, but (MAHB) has also been buffered by new airlines that we brought in," he told a press conference after MAHB's annual general meeting (AGM) here, today.

He said the numbers would also be driven by the return of British Airways, All Nippon Airways and Air China last year, and the extended code-share partnership between Malaysia Airlines and Emirates was a positive indication of continuing potential demand for air travel.

Badlisham said there was also strong growth at klia2, as well as its other airports besides KLIA, which indicated strong domestic demand as well for low-cost carrier traffic.

As of March this year, MAHB recorded 3.4 per cent year-to-date growth, he said.

Touching on Petronas Dagangan Bhd's unit, Kuala Lumpur Aviation Fuelling System Sdn Bhd's (KAFS) request of RM456 million from MAHB, Badlisham said the case was still in the arbitration process.

It was reported that KAFS, whose 50-year concession period to operate the aviation fuelling system at the KLIA had been halved, is seeking about RM456 million in claims from MAHB.

He was hopeful a resolution of a win-win situation between both parties would be found, adding that the contract would expire in 2034 and is currently in the discussion stage with the government.