SUBANG Skypark Sdn Bhd (SSSB), WCT Holdings Bhd’s wholly owned unit is proposing to enter a new concession to operate the entire Sultan Abdul Aziz Shah Airport (Subang airport) area until 2092 – developing it to be a city airport.
According to the concept papers sighted by The Vibes, businessman Tan Sri Desmond Lim Siew Choon is planning a takeover of the Subang airport, but key government-linked stakeholders are objecting the move, claiming estimated losses of up to RM11.9 bil.
SSSB is believed to have made the proposal to the Government via the Transport Ministry. The company envisages Subang airport to target point-to-point passengers and express freight together with related property developments.
Lim, the group executive chairman of WCT Holdings, holds a direct stake of 7.3% and an indirect stake of 18.15% through vehicle Dominion Nexus Sdn Bhd in WCT Holdings.
“Subang airport will grow to 7.5 mppa (million passengers per annum) and will operate turboprops, small jets, helicopters, drone/air-taxis and freighters,” SSSB pointed out.
SSSB is estimating a total of RM3.7 bil of initial investment without recourse to government funding where RM1.7 bil will be allocated for the passenger terminal and executive jet terminal to opening 2027 while RM2 bil will be spent over the next 10 years in the airport city.
However, the company stated that it will not compete with Kuala Lumpur International Airport (KLIA) as the focus will be “premium business travellers, capturing a different market from KLIA passengers.
Besides, the plan would also be on developing routes to cities or complementary secondary airports currently not being served by KLIA, namely the Jakarta’s Halim Perdanakusuma International airport.
SSSB also mentioned that it would have to negotiate “fair compensation” to owner Malaysia Airports Holdings Bhd (MAHB) and maintenance, repair and overhaul specialist Airod Sdn Bhd for vacating the airport.
In addition, SSSB would be proposing sharing a portion of the airport landing charges, roughly 15%, as a concession fee payment to the Government “in compensation for the use of the runway”.
Meanwhile, MAHB with Malaysia Aviation Group Bhd (MAG), the holding company of national flag carrier Malaysia Airlines Bhd, are in disagreement over the sale.
“The sale could significantly affect the country’s aviation industry,” MAHB chief executive Datuk Mohd Shukrie Mohd Salleh and MAG chief executive Izham Ismail said in a letter to the Transport Ministry Secretary-General Datuk Isham Ishak dated on April 28.
Both Shukrie and Izham pleaded with the ministry and the Government to allow MAHB to execute its “Subang airport regeneration” which had been recently tabled to key public officials, including Transport Minister Datuk Seri Wee Ka Siong.
On this matter, a Transport Ministry spokesman told The Vibes that the ministry will not answer on this matter for now while WCT stated that they are to comply to the regulations set out by the Securities Commission (SC) and MAHB has yet to respond at the time of writing. – May 6, 2021
