MAHB OFFERS INCENTIVE PAYMENT PROGRAMME TO BOOST PASSENGER ARRIVALS

SEPANG, Nov 19 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) Wednesday
introduced its airline recovery system which offers perks such as incentive
payments of RM10 (US$2.96) for each inbound passenger that new international
airlines bring into Malaysia as well as free airport office rental for six
months and free landing charges for three years.

Announcing the programme here Wednesday, MAHB managing director Bashir
Ahmad said the company would have to forego RM25 million to RM30 million in
revenue for the programme which would be effective for three years from January
1 this year.

These perks were applicable for international landings at Kuala Lumpur
International Airport (KLIA), Low-Cost Carrier Terminal (LCCT) KLIA and the
Sultan Abdul Aziz Shah Airport at Subang.

The airline recovery programme was in addition to the earlier 50 per cent
discount given for all landings for all airlines at all airports in Malaysia
between April 2009 and March 2011 under the government's stimulus package.

Bashir said the reward programme was aimed at attracting new airlines to
bring in more passengers which would boost MAHB's coffers ultimately as well as
help the badly-hit airline industry to recover from the global economic crisis.

As for the 54 or so airlines currently operating in Malaysia, he said they
would be rewarded with an incentive payment of RM10 for the first 10 per cent
increase in passengers, RM12.50 for the next 8.0 per cent and RM15 for each
additional passenger above 18 per cent, using their passenger load volume in
2008 as the base year.

Describing the response by existing airlines to the reward programme as
favourable, Bashir said it might be extended after 2011 based on the economic
situation and MAHB's ability to provide more incentives.

"This is because MAHB's airport charges are most probably the lowest in the
region and the world, so this is additional to all the rewards that we have
given them earlier," he added.

Bashir also said that two new airlines have started operations in KLIA this
year while two more would be coming by end of this year.

MAHB expects a four to five per cent increase in passenger growth this year
and a three to four per cent increase next year from increased flight
frequencies, he said, citing Iran's official airline Iran Air as among airlines
which have increased flight frequencies to Malaysia.

Bashir reiterated that MAHB has never stopped any international airline from
operating in any of its domestic or international airports.

"We have never done such thing but we have to admit that some of our
airports are not sufficient to accommodate international flights. Other than
that, we have no objection to them operating anywhere," he said. (US$1=RM3.38)
-- BERNAMA