PSM objects to proposed sale of Subang Airport

 

PSM has raised objections on the proposed selling of Subang's Sultan Abdul Aziz Shah Airport to Subang Skypark Sdn Bhd, arguing that the move would go against public interest.

PSM central committee member Sharan Raj said the proposed sale could expose airport operator Malaysia Airport Holdings Bhd (MAHB) to full market profit-orientated competition, despite its role to support domestic air travel in rural parts of East Malaysia.

He added that neither Subang Skypark's parent company, WCT Holding Berhad, nor its group executive chairperson Desmond Lim, has the financial capacity to invest RM3.7 billion for the purchase without taking massive debts from the bond markets and bank loans.

He also claimed the cash holding of WCT Holding Berhad as of Dec 31, 2019, was less than RM650 million.

"WCT Holding Berhad cannot solely rely on private jet travellers and must claw into the mass-passengers handle by KLIA and KLIA2 to pay the massive debt and earn profits," Sharan said in a statement. 

As a result, he said MAHB as the airport operator would generate less revenue from the commercial activities of KLIA and KLIA2, which is used to "cross-subsidise" the maintenance of 18 short take-off and landing ports (Stolports).

"The drop in revenue for KLIA and KLIA2 will lead to poor maintenance of Stolports. Subsequently, the government must divert public taxes from education and healthcare to subsidise Stolports.

"For rural East Malaysia without road connectivity, air connectivity through Stolports is the sole lifeline to bring in goods, food, medical personnel, teachers and newspapers," he added.

The Malacca PSM state secretary said a drop in revenue may increase airfare in the future.  

"In the long run, MAHB may have to raise landing charges to compensate loss of revenue leading to higher airlines tickets.

"Higher airlines ticket will then reduce the arrival of international tourists and curtail domestic travel between East and West Malaysia," he added. 

Overall, Sharan said MAHB, as a government-linked company, will provide lower preferential rates to the government and the government should not expect such lower preferential usage rates from profit-motived private capitalists.

Amanah deputy president Salahuddin Ayub yesterday urged the government not to take advantage of the emergency to sell the airport, better known as the Subang International Airport.

The Subang Airport, which began operations in 1965, serves as the base for Firefly and Malindo Airlines' turboprop services. It is owned by MAHB which has a concession to run the airport until 2069.

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

Online portal The Vibes previously reported that WCT Holding had proposed a new concession that will expire in 2092. - Mkini