Malaysian airport management company, Malaysia Airports Holdings Bhd’s (MAHB) network development programme (NDP) is expected to attract airlines to begin operations at the Melaka International Airport (LTAM).
In September last year, commercial flights in and out of LTAM came to a standstill following the abrupt exit of two service providers, citing lack of passengers and high costs of operations among the reasons.
The Melaka state government is taking all the necessary steps to 'resuscitate' LTAM by inviting airline operators to explore opportunities made available for them.
As per a report of Edge Malaysia, State Works, Infrastructure, Public Amenities, and Transport Committee chairman Datuk Hameed Mytheen Kunju Basheer explained that the NDP initiative is designed to support airlines wanting to launch flights to new international destinations at any airport managed by the company.
“NDP offers various incentives, including rebates such as exemptions from landing charges, passenger growth rebates, and marketing support. This programme will run from Jan 1, 2025, to December 2027,” he said.
The airport was busy in September last year with direct flights from Penang and Pekan Baru after it was badly impacted for three years due to the Covid-19 pandemic-enforced hiatus. On May 15, LTAM saw another direct flight route from Pekan Baru operated by Wings Air.
“The initiative has the potential to encourage airlines to operate at LTAM, contributing to the further growth of the country’s economy,” he said at the Melaka State Legislative Assembly sitting in Seri Negeri on Monday.
He was responding to a question from Kerk Chee Yee (PH-Ayer Keroh), who inquired about the availability of domestic and international flights at LTAM.
Hameed (BN-Ayer Limau) also emphasised that the state government consistently prioritises promoting LTAM through the annual Melaka International Air Carnival (KUAM), organised in collaboration with various agencies.
He noted that KUAM 2024 attracted 83,877 visitors, a significant increase from the 60,000 attendees in the previous year, along with a revenue of RM171,420.
Malaysian Association of Hotels (MAH) Melaka chapter chairman Khairulnizam Kasim said in November that commercial flights are crucial for the growth of the local hospitality industry.
Meanwhile, Gateway Development Alliance Sdn Bhd (GDA), a consortium comprising Employees Provident Fund (EPF), Abu Dhabi Investment Authority and BlackRock-owned Global Infrastructure Partners (GIP) has offered to acquire MAHB for the remaining 1.12 billion MAHB shares at RM11 per share.
Non-interested directors of Malaysia Airports Holdings Berhad (MAHB) are not happy with the proposed takeover of the airport operator at RM11 per share, amid widespread criticism that the company is grossly undervalued.
In another development, MALAYSIA Airports Holdings Bhd (MAHB) has reached a settlement with Kuala Lumpur Aviation Fuelling System Sdn Bhd (KAFS) concerning a long-running arbitration dispute.
The dispute, which dates back to 2015, involved KAFS’s claim for RM456 million in damages following a reduction in the concession tenure under the airport facilities agreement (AFA) signed in 2007.
