MAHB in capex drawback

The proposed airport tariffs were revealed in Mavcom’s newly-released Second Consultation paper on the long-term framework for the Regulation of Aviation Services Charges.

PETALING JAYA: The proposal by the Malaysian Aviation Commission (Mavcom) to raise airport tariffs based on the consumer price index (CPI) with effect from regulatory period 1 (RP1) covering the 2024-2026 period is positive.

However, this may not raise enough cash for Malaysia Airports Holdings Bhd (MAHB) for capital expenditure (capex) purposes, particularly, for airport expansion and maintenance, according to Kenanga Research.