SEPANG: The government has appointed Malaysia Airports Holdings Bhd (MAHB)  to manage 39 airports and Short Take-off and Landing Air Strip (STOLports) for another 45 years, until Feb 11, 2069.

MAHB signed new operating agreements (OAs) with the government to continue operating, managing, maintaining, and developing the airports and STOLports.

MAHB said these agreements, executed through two distinct operational frameworks, which is the OA for KL International Airport (KLIA) and the OA for Designated Airports, signify a significant step towards driving sustainable growth and elevating services across the nation's airports.

It said the new OAs offer the group flexibility to pursue strategic investments essential for enhancing airport capacity, facilities, and infrastructure, thereby elevating overall service standards.

With favorable commercial terms and a transparent investment return mechanism, MAHB said these agreements foster a balanced and sustainable development path for the group and its airport network which plays a vital role as an economic development catalyst for Malaysia.

MAHB acting group chief executive officer Mohamed Rastam Shahrom said the operating agreements reaffirm the confidence in the established airport network framework and cross-subsidy model that has effectively served the group over the years.

"Malaysia Airports remains committed to ensuring the highest standards of airport operations and services, and continues to enable vital connectivity across Malaysia, spanning both urban hubs and rural communities."Furthermore, the new terms grant the group the flexibility to strategically invest in airport development and modernisation as needed, alleviating any financial burden on the Malaysian government. "This is facilitated by the capital return mechanism delineated within the agreements," he said at the signing ceremony held at Sama-Sama Hotel, KLIA today.

To date, MAHB has contributed RM42.9 billion to the government. This is through airport development costs, user fee payments to the government and dividend payments to shareholders, among others.

https://www.nst.com.my/business/corporate/2024/03/1027232/government-appoints-mahb-manage-39-airports-and-stolports-another