A letter purportedly from Khazanah Nasional Bhd to Prime Minister Muhyiddin Yassin details severe consequences if the Sultan Abdul Aziz Shah Airport (Subang airport) is sold to WCT Holdings Bhd, claimed Muar MP Syed Saddiq Syed Abdul Rahman.
Among others, Syed Saddiq claimed the letter dated May 11 this year, stated that privatising the airport would “kill” plans to restructure the Malaysian Aviation Group (MAG) - which oversees Malaysian Airlines Bhd (MAB)
“Why did they say this? Because Khazanah has spent RM28 billion on top of an additional injection of RM3 billion to restructure Malaysian Airlines, so that it stays relevant and functioning.
"This amount was already spent to save MAG which oversees MAB, and the WCT acquisition (of the Subang airport) will potentially undermine the restructuring of MAG,” Syed Saddiq said at a virtual press conference he hosted from outside Parliament today.
Explaining this further, Saddiq claimed MAB would suffer if WCT took over the Subang airport and made it a more favourable location to fly from compared to Kuala Lumpur International Airport where the troubled national airline operates.
“Because a tauke takes over the Subang airport, now people can fly from there. This will affect all MAB routes from KLIA because of a cross-cannibalisation effect,” he added.
Syed Saddiq did not reveal the full Khazanah letter, citing its private and confidential nature - but said certain points should be made known to the public.
At present, Subang airport serves as the base for MAB’s 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. Khazanah is also the sole owner of MAB.
According to The Vibes, WCT Holdings' wholly-owned unit Subang Skypark Sdn Bhd has proposed a new concession that will expire in 2092. Property magnate Desmond Lim controls WCT Holdings.
Subang Skypark reportedly plans to shift Subang airport’s focus to “premium business travellers, capturing a different market from KLIA passengers”.
The report said the company also wants to add new facilities - convention hall, pet hotel, hospital, hanger and maintenance, among others - to Subang airport.
Meanwhile, Saddiq cited a different letter from MAG and MAHB dated April 28, to say that MAHB would have to bear RM11.9 billion in losses from the airport sale, while MAB would lose RM1 billion per year.
Separately, MAHB chairperson Zambry Abd Kadir reiterated for the third time today his objection to the Subang airport sale.
Zambry said MAHB was drafting the Subang airport regeneration plan as part of ongoing efforts to transform the airport into an aviation hub in the Asia-Pacific region.
“I stress that the Subang airport regeneration plan, submitted by MAHB, is part of the government's future planning framework towards the national aviation and aerospace industry, namely the National Airports Strategic Plan (NASP) and the Malaysia Aerospace Industry Blueprint 2030,” he said in a statement today.
He had previously said that Subang airport should not be sold as it is deemed a strategic asset for the country and possesses historical value. - Mkini
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