13 August 2020, Thursday | 11:20am

Celebrating 25 Glorious Years of Serving the Nation


One of the most successful GLCs in Malaysia – Malaysia Airports turns 25 this year and continues to play a key role in contributing to the country’s aviation and tourism industry, as well as opening up business and trade opportunities. Since its establishment in 1992, the company has not only cemented its position as one of Malaysia’s key economic enabler but is also internationally acknowledged as one of the world’s best airport operators.

First airport in Asia to have a 3-independent runway system and a Skybridge. 

Last year, the airport operator group registered nearly 120 million passenger traffic movements making it the 4th largest in the world after Spain’s ENAIRE, France’s VINCI and Thailand’s AOT.

Malaysia Airports is the country’s major airport operator - managing 5 international airports and 16 domestic airports, as well as 18 short take-off and landing (STOL) ports that dot the hinterlands of Malaysia as part of its corporate responsibility in connecting the rural to urban population. In 2016, there were 89 million passenger traffic movements registered for its whole Malaysia operations – a far cry from the 30 million more than 20 years ago.

Passenger traffic movements at its flagship airport, KL International Airport (KLIA) has also been climbing by leaps and bounds. From a mere 13 million passenger traffic movement when it first opened nearly two decades ago and ranked only the world’s 69th busiest airport at that time.

KLIA is now among the top 25 busiest overall and top 15 for international traffic movements.

Last year it registered nearly 53 million passenger traffic movements for both terminals, KLIA Main/klia2. In opening klia2 as the second terminal for KLIA, Malaysia Airports had set its sights to amply cater for the expected air traffic growth within the Asia Pacific (APAC) region.

The APAC region continues to be the greatest driver for demand in regard to passenger traffic growth.

Not only has KLIA’s capacity increased to 75 million passengers per annum (mppa) with the addition of a second terminal, it now operates three independent runways.

This has brought about more efficient flight operations by allowing for 78 aircraft movements/hour compared to 68/hour before. Indeed, all these had promoted growth for both the airport and airlines, especially in the low-cost travel segment. 

Compared to 2013, the last full year of operations in LCCT, passenger movement numbers increased from 21.8 million to 25.5 million for klia2 in 2016.

Combined, both terminals in KLIA cater to more than 60 airlines, serving more than 120 direct destinations and more than 1,000 indirectly. KLIA also serves as the home-base to 4 local carriers - Malaysia Airlines, AirAsia, AirAsia X and Malindo Air whose combined global network span six continents.

In charting the future for the country’s aviation industry, Malaysia Airports did not neglect growth at other airports apart from KLIA. Within the last 20 years, growth at most of these airports have either doubled or tripled.

This growth which has contributed greatly to increased tourism for Malaysia had been facilitated by various capacity enhancements, efficiency measures and consolidation of operations done in the past years. As an example, passenger traffic movements for Kota Kinabalu International Airport increased by 10.5% in 2016 after the consolidation of operations at Terminal 1 was undertaken at the end of 2015.

The acquisition of Istanbul Sabiha Gokcen International Airport in Turkey made Malaysia Airports the first Asian airport operator to fully own an overseas airport.

The company’s foray into the global playing field has also brought international repute to Malaysia. Since 1995, Malaysia Airports has been involved in the management of 7 overseas airports namely, Siem Reap and Phnom Penh International Airports in Cambodia, Astana International Airport in Kazakhstan, Hyderabad and Delhi International Airports in India, Maldives International Airport.

Its most recent overseas ventures were the full acquisition Istanbul Sabiha Gokcen International Airport in Turkey, making Malaysia Airports the first Asian airport operator to fully own an overseas airport - which at that time was also Europe’s fastest growing for five consecutive years.

Another exciting venture destined to bring economic opportunities to the country is the development of KLIA Aeropolis within the 1,300-acre plot of land surrounding KLIA.

Launched in April 2016, its development is focused on 3 key clusters – Air Cargo & Logistics, Aerospace & Aviation, and MICE & Leisure - which are closely aligned to various national development agenda.

The development of KLIA Aeropolis is slated to contribute RM34.7 billion in GDP by 2030 and create 48,000 job opportunities.

klia2 was also a key component in realising KLIA Aeropolis and its development had spurred an increase in economic and employment opportunities by creating more than 7,000 jobs at the terminal alone.

Meanwhile, the construction of klia2 had benefited a total of 114 companies, whereby 99% of the work scope was undertaken by local companies. This was part of the government’s economic stimulus package meant to stimulate the economy from the recessionary trends in 2009.

Built with a ‘airport in mall and mall in an airport' concept, the terminal has 225 retail and F&B outlets aimed at creating a more joyful experience for leisure travellers. Last year, total sales for retail operators at klia2 reached RM741.5 million.

On top of this, Malaysia Airports as part of its corporate responsibility has also collaborated with FAMA by opening the Joyful Malaysia Agrobazaar outlet in klia2. Apart from bringing the Malaysian experience to international travellers, this outlet will also benefit at least 50 local SMEs in marketing their products to an international audience. With all these successes, Malaysia Airports has remained one of Malaysia's strongest performing GLCs. With revenue tripling from 10 years ago, investor confidence has also grown tremendously where market capitalisation had grown about 5 times more within the same period.

In celebrating its 25th anniversary, the company has reached a significant milestone. Building on these past successes and strong foundation, Malaysia Airports aspires to continue serving the nation and ultimately achieving its vision to become a global leader in creating airport cities.


Source: MAHB/ New Straits Times (advertorial)

Image Courtesy: KLIA/http://bit.ly/2vqCmEB


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