Govt extends operating agreements with MAHB for 35 years

KUALA LUMPUR: Malaysia Airports Holdings Bhd's (MAHB) operating agreements (OA) with the government to operate, manage and maintain the country's 39 airports has been extended by 35 years.

MAHB said on Friday the OA extension would give it the rights to manage the existing 39 airports and short take-off landing airports in Malaysia until Feb 11, 2069. The existing OA was 25 years from Feb 12, 2009.

“The current OA and Lease Agreements will be superseded and replaced with four new OA which are the OA for KLIA, OA for designated airports in Peninsular Malaysia, OA for Sabah airports and OA for Sarawak airports (new OAs) and new lease agreements, respectively,” it said.

At midday, MAHB shares were up 14 sen to RM6.75.

The share price had fallen over the past week on concerns about the impact from the passenger departure levy. On Thursday, it fell 14 sen to RM6.61.

Bloomberg reported the International Air Transport Association was disappointed with the proposed response to the passing of departure levy bill by parliament.

“Levy would reduce number of passengers departing Malaysia by up to 835,000 a year. Aviation sector’s GDP contribution would be lowered by up to US$419mil and lead to loss of up to 5,300 jobs. 

“The levy would erode Malaysia’s competitiveness as tourist destination,” IATA was reported saying.