AIRPORT CHARGES FREEZE SHOWCASES GOVT'S COMMITMENT ON MAS & AIRASIA DEAL

 AIRPORT CHARGES FREEZE SHOWCASES GOVT'S COMMITMENT ON MAS & AIRASIA DEAL


    KUALA LUMPUR, Sept 12 (Bernama) -- The government's move to put on hold the
recently approved increases in airport charges by Malaysia Airports Holdings Bhd
(MAHB) for an indefinite period, clearly demonstrates its commitment
to the recently signed collaboration between AirAsia and MAS.

    In a research note Monday, OSK Research said the decision by the Ministry of
Transport did not come as a surprise, given the intense lobbying from AirAsia
Bhd and Malaysian Airline System Bhd following the sealing of their
collaboration agreement early last month.

    "While the freeze on raising tariff is negative to MAHB, the turn of events
demonstrates the government’s (Khazanah) commitment to the collaboration," the
research house said.

    On Friday, the ministry put on hold the passenger service charge which
was due for an increase from 27 per cent to 28 per cent, effective this Sept 15,
while the aircraft landing and parking charges were to be gradually raised up
to 30 and 64 per cent respectively.

    The new passenger service charges were to be borne by the traveling
passenger.

    Under the new rates, the international passenger service charge will
increase from RM51 to RM65 at the KL International Airport's main terminal
building, Sultan Abdul Aziz Shah Airport Subang, Langkawi International Airport,
Penang International Airport, Kota Kinabalu International Airport Terminal 1 and
Kuching International Airport.

    Meanwhile, OSK Research said it is now reverting MAHB's earnings estimate to
its previous forecast, in view of the latest development.

    The research firm had earlier raised MAHB's earnings forecast by two
per cent, 11 per cent and seven per cent respectively for financial year 2011,
2012 and 2013.

    OSK Research maintained its "buy" call on MAHB with a downward revised fair
value of RM7.36 from RM8.10. (US$1=RM2.98)

    -- BERNAMA