LANGKAWI (Feb 27): The government has given its approval for the expansion and upgrade of the Penang International Airport (PIA) worth RM1 billion, which will be handled by Malaysia Airports Holdings Bhd (MAHB), said Transport Minister Anthony Loke Siew Fook.

“The actual figures (cost) will only be determined after the tender process as there are also plans to expand and upgrade the facilities and infrastructure near the airport,” he told the media after officiating the Routes Asia 2024 event at the Mahsuri International Exhibition Centre (MIEC) in Langkawi on Tuesday.

Loke said the government is hopeful that the project can start immediately and be completed within four years.

Meanwhile, Loke said that AirAsia has submitted a request to his ministry and received preliminary approval to impose a carbon levy.

He emphasised that the charges are intended to be minimal and will be determined by market forces, as high carbon taxes could deter people from flying.

“This is not mandatory and something the airlines will have to decide for themselves depending on their strategy and pricing mechanisms,” he said.

He noted that unlike Singapore, Malaysia is taking a different approach with this.

“… but sustainable aviation fuel (SAF) is very expensive. For airlines to adopt SAF, they definitely have to increase the prices or to impose certain charges on passengers,” he said.

Loke further mentioned that certain airlines may wish to implement a carbon fee, but his ministry will maintain this as optional.

“There are other ways to do it in terms of reducing carbon emissions, such as operational efficiency. For example, how do we ensure that aircraft can take off and land in a more efficient manner, without taking too long, or cutting down landing and take-off time,” he added.

He explained this is something that needs the cooperation of air traffic management, which falls under the Civil Aviation Authority of Malaysia.