Momberger
Malaysia Airports Holdings Bhd (MAHB) is setting aside USD 100 million capital expenditure (capex) for mission critical projects in 2021, more than double the USD 44.5 million in 2020. The airport operator also outlined a five-year blueprint, with the first two years focusing on surviving the fallout of the Covid-19 pandemic. "Our capital expenditure for 2020 was USD 44.5 million and these were for key projects such as the network upgrade, Runway 3 rehabilitation, and washroom refurbishment," group chief executive officer Datuk Mohd Shukrie Mohd Salleh said. "For 2021, our capex will also be based on mission critical projects and we expect to spend about USD 100 million. It is very important that we forge ahead with the mission-critical projects so that we do not compromise on service levels and to ensure that our airport is future-ready when travel picks up again." Most of these projects are centred around the Kuala Lumpur International Airport (KLIA). Mohd Shukrie Mohd Salleh says the airport operator will embark on critical ageing asset replacement rather than expansion to facilitate traffic when it returns to normalcy. This includes baggage handling system (BHS), the aerotrain and the refurbishment of all washrooms at the main terminal of the KLIA. The government, via the Transport Ministry, had in April 2019 extended the OA for MAHB to operate, manage and maintain airports throughout the country until February 11, 2069. This allows MAHB to implement a commercial development plan sustainably while improving the revenue-sharing with the government. Mohd Shukrie Mohd Salleh said MAHB would focus on business transformation and growth to explore new revenue stream, creating different market segmentation and uplift its overall revenue, both aeronautical and non-aeronautical. "We want to ensure ample capacity for growth by optimising capacity with the modernisation of KLIA Terminal 1 to cater up to 20 million additional passengers. This reduces congestion at critical passenger processing areas and improve processes and services levels," he added. #1137.32
