By Emmanuel Samarathisa
THE government needs to relinquish its golden share in Malaysia Airports Holdings Bhd (MAHB) to encourage competition in the aviation industry, says the Malaysian Aviation Commission (Mavcom).
This was among the implementation items under the agency’s Proposed Economic Master Plan (EMP) launched today (Feb 11) to establish and maintain a fair and competitive commercial environment.
Abolishing the golden share would reduce “government interference in commercial decision-making,” Mavcom said.
The agency categorised the removal to be implemented in the “short term.”
The move, together with allowing for more airport operators, will help make the industry “competitive”, Mavcom chief operating officer Azmir Zain said at a Feb 11 press conference.
But he added that any measure to make the industry more competitive had to be implemented carefully.
“The process of greater competition has to be done gradually and judiciously,” he said, referring to the cross-subsidy mechanism in the country.
MAHB runs 39 of the 42 airports in the country. But the airport industry is structured such that a profitable airport subsidises a loss-making one. – Feb 11, 2020
