AirAsia jumps on KKIA Terminal 2 hope

KUALA LUMPUR: Share price in AirAsia Bhd climbed to its highest since Pakatan Harapan won the general election on May 9, bolstered by news that the government is looking into the budget carrier’s request to move its base in Kota Kinabalu to a dedicated low cost terminal.

At 3.30pm. the stock was up 12 sen at RM3.52 as at 3.30pm with 16.6 million shares changing hands.

Transport Minister Anthony Loke Siew Fook said in parliament today that the government is studying AirAsia’s proposal to return its operations to Kota Kinabalu International Airport’s (KKIA) Terminal 2.

“Malaysia Airports Holdings Bhd (MAHB) said KKIA will reach maximum capacity by 2021, hence the Government needs to look at the technical aspect of AirAsia’s proposal to return to Terminal 2,” he said in reply to a question by Ahmad Hassan (PH-Papar) in Parliament on Thursday.

Loke also said that he will not allow any one company to monopolise the airport business.

“We hope to have healthy competition and ensure we plan early for airport capacities,” he said.

All airports in the country - except for the Senai airport, Johor - are operated by Malaysia Airports Holdings Bhd (MAHB), the company in which Khazanah Nasional Bhd has a 33% stake.

Earlier last week, AirAsia Group CEO Tan Sri Tony Fernandes said he had met with Sabah Chief Minister Shafie Apdal to discuss the  budget carrier’s plan to operate KKIA Terminal 2 as an independent, low-cost terminal.

CIMB Research, in a note on Monday, said the plan, if goes through is positive for AirAsia, but negative for MAHB. As it is, KKIA is the second busiest airport in the country.