MP: Don't use emergency to sell Subang airport

 

Amanah deputy president Salahuddin Ayub urged the government not to take advantage of the emergency to sell the Sultan Abdul Aziz Shah Airport, better known as the Subang International Airport, in Selangor.

Citing a report by The Vibes, Salahuddin said there was an attempt to "hijack" the airport which will cause losses for Khanazah Nasional Bhd and the Employees Provident Fund (EPF).

"Do not allow direct negotiations. Reopen Parliament and let us debate this. This involves the people's property," said the Pulai MP.

The airport, which began operations in 1965, currently serves as the base for Firefly and Malindo Airlines' turboprop services. The current owner is Malaysia Airport Holdings Bhd (MAHB) which has a concession to run the airport until 2069.

Khazanah Nasional , EPF, and Retirement Fund Inc (Kwap) collectively own 53 percent of MAHB as of end-2020.

According to The Vibes, WCT Holdings Bhd's wholly-owned unit Subang Skypark Sdn Bhd has proposed a new concession that will expire in 2092.

WCT Holdings' group executive chairperson is Desmond Lim, who is best known for developing Pavilion Mall in Kuala Lumpur.

Subang Skypark was reported to have submitted a proposal to the Transport Ministry to take over the entire airport and develop the surrounding land.

The report said that Subang Skypark envisioned the airport would focus on "premium business travellers, capturing a different market from KLIA passengers".

The report claimed that MAHB and the Malaysia Aviation Group Bhd (MAG) - which owns Firefly - are against the proposal and submitted their objections to the Transport Ministry.

Among others, the two companies said the move will threaten the investment returns of MAHB's owners and will "certainly involve public money" because the company will have to compensate bondholders.

The loss, said the two companies, would be up to RM11.9 billion based on the remainder of the airport concession.

Instead of proceeding with Subang Skypark's proposal, MAHB and MAG are proposing that MAHB be allowed to proceed with its "Subang airport regeneration" plan.

This plan, expected to be completed by end-2025, will see the establishment of hangars, factories, maintenance, repair, and operation facilities. - Mkini