MAHB to convert LCCT into cargo warehouse

Malaysia Airports Holdings Bhd (MAHB) is in the midst of studying plans to convert the Low-Cost Carrier Terminal (LCCT) into a cargo warehouse, said chief financial officer, Faizal Mansor.

"The LCCT is located at the cargo warehousing area. When the LCCT was built, it was meant to be temporary and therefore we could easily convert it into a cargo warehouse," he said after a media briefing on the airport operator's second-quarter financial performance Thursday.

He was responding to a question on whether the old LCCT would be converted into a cargo warehouse facility.

MAHB planned to convert the LCCT into a cargo warehouse once AirAsia moves out in September next year, he said.

"Of course, AirAsia has to move to klia2, otherwise it won't be operationally efficient for them as they have to operate far away," said Faizal.

Faizal said MAHB was looking at all possibilities that would enhance Kuala Lumpur International Airport as a whole.

"The cargo growth in Malaysia is quite slow in the last few years compared to the passenger movements. We are trying to do evaluation and assessment to see on how we can boost cargo growth in Malaysia," he said.

MAHB reported a pre-tax loss of RM37.73 million for the second quarter ended June 30, 2014 compared to a pre-tax profit of RM132.06 million in the same period last year.

Revenue, however, increased to RM1.18 billion in the quarter from RM978.10 million for the corresponding period of a year ago.