MAHB gets relief for Istanbul airport utilisation fees during pandemic

KUALA LUMPUR (Dec 28): Malaysia Airports Holdings Bhd (MAHB) said it has received the nod for a reduction of fees for the utilisation of Istanbul Sabiha Gökçen International Airport (SGIA) during the Covid-19 pandemic.

MAHB’s subsidiary operating the airport had previously secured a deferment from the Presidency of Defence Industries of Türkiye (SSB) for the payment, amounting to €114.8 million (RM539.37 million), which was initially scheduled to be paid in January 2021 and January 2022.

This followed the execution of an implementation agreement between SSB and MAHB’s subsidiary ISG pertaining to force majeure relief for the Covid-19 period.

MAHB, however, did not state the quantum of the reduction or the balance of the deferred payment that is yet to be paid by the airport operator.

“The force majeure relief was formalised on Dec 28, 2022 through the amendment of the implementation agreement between ISG and SSB,” MAHB said in a filing on Wednesday (Dec 28).

“As part of the force majeure relief, SSB has granted a reduction on the utilisation fees taking into consideration the Covid-19 impact, to be applied on the deferred amount.

“The remaining balance of the deferred amount shall be paid not later than Dec 31, 2025, subject to interest of 6.524% per annum,” MAHB said.

“The force majeure relief is expected to contribute positively to the earnings and net assets of the group,” it added.

Passenger count in SGIA fell sharply during the pandemic. In 2020, it recorded 17.2 million passengers, down 52% from 35.95 million recorded in 2019. In 2021, it saw 25.36 million passengers, representing 70% of pre-pandemic levels.

From January to November 2022, passenger count in the airport totalled 30.68 million, representing 94% of 32.63 million passengers recorded in the same 11-month period in 2019.

Shares of MAHB settled up eight sen or 1.24% at RM6.55, giving it a market capitalisation of RM10.87 billion. Year-to-date, the counter is up 9.53%.