Friday May 29, 2009
Global slowdown, flu scare will impact the number of arrivals
SEPANG: Passenger growth inMalaysian airports this year will bestagnant or contract by up to 5% due to the global economic slowdown an d A (H1N1) flu, said Malaysian Airports Holdings Bhd (MAHB) managing director Datuk Seri Bashir Ahm ad.
But the company, which operates airports in the country, said it has remained profitable, based on data for the first four months of its operations this year.
"The c urrent A (H1N1) flu scare is another reason for the decline in passenger numbers but (based on) these four months, (we remain profi table)," he said after MAHB AGM on Thursday.
Bashir said the drop in passenger numbers would be offset by revenue from non-airport b usinesses.
"We are also consolidating our strength by disposing some noncore businesses to become a leaner and more focused entity," he added.
At the AGM, shareholders approved the propo sed disposal of two non-c or e businesses 'Sepang International Circu its Sdn Bhd and National Exhibition & Convention Centre Sdn Bhd.
MAHB was also in talks with other international airport operators for potential overseas business operations, Bashir said without elab orating.
On the new low-co st carrier terminal (LCCT) at KL International Airport (KLIA), he said it w as progressing well since construction began in March.
Meanwhile, MAHB's net profit for the first quarter ended March 31 improved slightly to RM91.9mil from RM91.6mil a year earlier.
This was achieved on the back of lower expenses as a result of reversal of provision for lease rental amounting to RM52mil.
However, its reven ue was 4.2% lower at RM392.1mil against RM409.4mil previously on a 72% drop in revenue from non-airport operations, mainly due to lower revenue recorded in event management and agriculture segments by 96% and 55% respectively.
"The event management segment's revenue dropped by RM52mil as revenue from the F1 event will only be recognised in the following quarter because the e vent was held in April compared with March in 2008," it said.
It added that the reduction in revenue from the agriculture segment was due to lower total crops harvested an d fresh fruit bunch price.
However, revenue from airport operations increased by 17%, with aeronautical and non-aerona utical revenue growing by 22% and 11% respectively.
"The aeronautical revenue w as 5% lower due to the drop in passenger movement in KLIA and other airports by 3.15% and 1.47% respectively.
"The passenger movement in the LCCT, however, increased by 28.18%," MAHB said.
This article is a verbatim copy of the original article from The Star.