KUALA LUMPUR: Kuala Lumpur International Airport (KLIA) and klia2 in Sepang will be rebranded as Terminal 1 & Terminal 2.
Malaysia Airports Holdings Bhd (MAHB) today said it had obtained the government's approval on the rebranding.
"This will allow us to market the airport's services more effectively thus strengthening KL International Airport's position as a regional hub," MAHB managing director Datuk Iskandar Mizal Mahmood said in a statement.
MAHB also announced that it had obtained approval in-principle from the government on the material terms of the Operating Agreements (OA 2023) to operate, manage, maintain and develop 39 airports and STOLports nationwide until 2069.
The new OA 2023 was a reflection of the government's confidence in MAHB's capabilities and deep experience in managing and operating airports locally and internationally, Iskandar said.
It also served as an affirmation of the airport network framework and cross-subsidisation model.
"It will ensure commercial sustainability and facilitate growth for the nation's airports, which in turn will serve as an important economic development lever for Malaysia.
"We will be able to continue operating underserved essential community airports and STOLports, and at the same time enhance airport capacity where needed and provide better airport service levels as a whole," he said.
MAHB said OA 2023 would give it the flexibility to invest and reinvest in the modernisation and development of viable airports under fair and conducive commercial terms with a clear investment return mechanism.
The material terms of the OA stated the government and MAHB have the flexibility in the method of funding airport development costs.
This is either using government allocations through development expenditure (DE) or MAHB through any suitable investment recovery model mechanism.
MAHB said this would be subjected to the mutual agreement of both parties with the weighted average cost of capital (WACC) to be determined only when a project would be implemented and government's approval.
It also includes the establishment of the Airport Development Fund (ADF), a development trust account under Section 9 of the Financial Procedures Act 1957 [Act 61], to receive contributions from airport users, the public and also airlines and does not involve contributions from government funds.
Another term under the OA is that 50 per cent of the passenger service charge (PSC) component that is taken into account in the calculation of the user fee will be channelled to the ADF trust account.
"The government has the right to restructure the airport industry through clustering, carving out, divestment of airports, closure of existing airports or terminals or the restructuring of the ownership of any of the facilities subject to the mutual agreement with MAHB," Iskandar said.