Once a state-run airport operator, Malaysia Airports Holdings Berhad was corporatised in 1992 and listed on the Malaysian Stock Exchange (Bursa Malaysia) seven years later, becoming the first Asian airport operator to go public and only the sixth in the world to do so. It now employs more than 10,600 people in Malaysia and around the world.
Our core business is the management, operation, maintenance and development of airports. The company draws its revenue from aeronautical operations – aircraft landing and parking fees, passenger service charges and other airline charges – and commercial activities from airport-related services such as duty free shops and other retail outlets, hotel operations, commercial leasing and car park management.
Each airport that is managed by Malaysia Airports is unique with widely different requirements – some of the Short Take Off and Landing Ports (STOLports) for example, are remote landing strips carved out of the jungle with few services, if any, but the company’s portfolio also includes full service international airports providing multiple runways and a fully-integrated travel experience.
Over the past three decades the company has developed a business model that focuses not only on the airports portfolio, but also on optimising the commercial opportunities presented by the travel and aviation industry. As we move forward, our new goal is to develop the “Airport City” of the future – providing world-class aeronautical services while fully utilising surrounding land banks to develop malls, hotels and leisure facilities to ensure a joyful experience not only for the contemporary traveller, but also for all Malaysia Airports’ clients and business partners.
The expansion of Malaysia Airports commercial activities has not only allowed us to maintain aviation charges at a competitive level, but also to keep returns to shareholders robust. Moreover, the model has allowed us to cross-subsidise the vital, but less lucrative operations of our smaller landing strips and airports where communities depend on air transport to connect with the outside world. Malaysia Airports sees the continuing operation of these remote airbases as a crucial part of its responsibility as a worthy corporate citizen.
Malaysia Airports completed improvements to some of its other domestic airports in 2014, notably in Penang with a record six million people using the facility last year. Subang, which mostly handles turbo-prop flights, and Langkawi in the Andaman Sea also handled record numbers of passengers.
Since its debut on the stock exchange, Malaysia Airports has endeavoured to boost its return to shareholders through the expansion of its airport portfolio overseas. It is currently managing a few international hubs, one of which is the Istanbul Sabiha Gokcen Airport in Turkey, which is 100 percent owned by Malaysia Airports.
A slew of awards and accolades in 2014 is a testament to our success in the aviation business. The KL International Airport won the Large Airport of the Year at the CAPA Awards for Excellence in Asia Pacific Aviation and the world’s number two airport (40 – 50 million passengers per annum) in the Skytrax 2014 World Airport Awards. Readers of SmartTravelAsia.com also voted KLIA the third best airport worldwide. In addition, Tan Sri Bashir Ahmad Abdul Majid, Malaysia Airports current advisor and former managing director from 2003 to 2014, was recognised by BrandLaureate as the “Aviation Man of the Year,” and TripAdvisor travellers voted Sama-Sama KLIA among their Top Ten hotels in the Luxury/Romance category.
KL International Airport
KL International Airport, the premier gateway to Malaysia, opened in June 1998 with the capacity to handle as many as 35 million passengers and 1.2 million tonnes of cargo a year. The main terminal building and the satellite building provide world-class facilities and an exceptional airside experience for passengers from all over the world. KLIA is now recognised as one of Southeast Asia’s leading aviation hubs offering flight connections on 57 carriers to 126 destinations. The airport is the only one in the region to offer three independent runways and is now ranked the 11th busiest in the world in terms of the number of international passengers it handles. Total passenger traffic was 48.9 million passengers, an increase by 3% from 2013.
KLIA is located in Sepang, in the western state of Selangor about 50 kilometers from the capital city, Kuala Lumpur. It is easily accessible via a network of highways that connect the airport to the rest of Peninsula Malaysia. An express rail link connects KLIA to the city in only 28 minutes and other forms of public transport, including buses, taxis and limousines are readily available. KLIA has won numerous awards since it opened 17 years ago and is at the heart of Malaysia Airports mission to become a leader in the creation of airport cities. Combined with klia2, which opened in 2014, KLIA will be the Next Generation Hub, in the heart of Asean – a geographical zone of some 620 million people all within flying times of between four and five hours. Together, KLIA and klia2 offer long and short-haul capability with facilities that integrate both full-service and low-cost carrier operations. With a land bank measuring 10km by 10km, there is also ample room for expansion and space for a fourth runway.
Malaysia Airports was proud to welcome its first passengers and airlines to klia2, the world’s largest dedicated low cost carrier terminal, in 2014. The 257,000 square meter building with aerobridges and other support facilities were built at a cost of RM4 billion to replace the Low-Cost Carrier Terminal (LCCT) and redefine the traveller experience with world-class services and connectivity. Situated just two kilometers from KLIA Main, the facility boasts 128 check-in counters, 52 self-check-in kiosks and fully automated baggage handling system. A dedicated runway and control tower, meanwhile, ensure efficient aircraft operations.
A crucial component of Malaysia Airports goal of becoming a global leader in creating airport cities, klia2 is designed to handle as many as 45 million passengers a year – three times more than the LCCT - with the flexibility to expand based on capacity growth, airline projections and future low cost travel trends. The terminal is designed not only for customer comfort and convenience, but also to ensure an exceptional travelling and retail experience. klia2 is the first terminal in the region with a subbridge which allows full segregation at International Departure and Arrival.
Some 35,200 square meters of space is dedicated to retail including food and beverage outlets and a fully stocked supermarket as part of Malaysia Airports’ “Airport in a Mall; Mall in an Airport” concept. Passengers also enjoy seamless connectivity between the airport and to the city centre through the express rail link, which also provides onward travel to Kuala Lumpur. Buses, taxis and ample covered car parks are also available to both travellers and staff.