Govt extends MAHB’s operating, lease agreements for another 45 years to 2069

Agreements will pave way for MAHB to plan more long-term developments in its airports

3:20 PM MYT

 

SEPANG – Malaysia Airports Holdings Bhd (MAHB) has inked fresh operating agreements (OA) with the government, allowing the company to extend its management of airports here by another 45 years to 2069. 

The agreements include one between the government, MAHB and Malaysia Airports (Sepang) Sdn Bhd for Kuala Lumpur International Airport (KLIA), while the other is for designated airports and will see cooperation between the government, MAHB and Malaysia Airports Sdn Bhd. 

The entities will also take on lease agreements (LA) for KLIA and other designated airports, Transport Minister Anthony Loke said during his officiating speech at the signing of the agreements, here today. 

“Through the renewed OA and LA, the government will continue to give MAHB rights to operate, manage, maintain and develop 39 airports and STOLports (Short Take-Off and Landing) until February 11, 2069. 

“MAHB will also play a role in reducing costs borne by the government by taking over development costs for competitive airports in the future.” 

He also said the agreements will pave the way for MAHB to plan more long-term developments in airports under its watch by considering the group’s expertise and experience both within the nation and overseas. 

“We must work harder to deliver the best service to travellers (if) we want to relive the glory days of KLIA being in the top 10 best airports in the world.” 

In a statement, MAHB said with favourable commercial terms and a transparent investment return mechanism, the agreements will foster a proper development path for the group and its airport network. 

“To date, the group’s contributions total approximately RM42.9 billion, encompassing various aspects such as airport development costs, user fee payments to the government, dividend payments to shareholders as well as tax and zakat payments.”

The existing OA was signed in February 2009 and was in effect for 25 years up until February 11, 2034. 

In 2019, the cabinet had approved an extension to MAHB’s concession to operate 39 airports in the country from 2034 to 2069. – March 18, 2024

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