KUALA LUMPUR: Malaysia Airports Holdings Bhd
(MAHB) has secured new operating agreements (OA) from the government to extend its management of Malaysia's airports by another 35 years to Feb 11, 2069.
In a statement, the airport operator said it had entered into two operating frameworks comprising an OA for KL International Airport and a separate OA for designated airports to drive sustainable growth and elevate services across the nation's airports.
"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, 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," said MAHB.
The new OAs supersede the existing OAs signed on Feb 12, 2009, which were set to expire on Feb 11, 2034.
MAHB acting group CEO Mohamed Rastam Shahrom said the OAs reaffirm confidence in the established airport network framework and cross-subsidy model.
"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 added.
