The Malaysian Aviation Commission (Mavcom) says this will help increase air connectivity which will spur economic growth and prosperity in the country. FMTNews Mavcom Klia
Mavcom says an increase in air connectivity would attract not just greater tourism and commercial activity, but also human capital.
According to 2018 data, Malaysia ranks number four in airline connectivity, after Indonesia, scoring 94.5% in the air connectivity index. It serves 128 international destinations and 43.5 million international passengers. He said this meant connectivity to other international destinations was poor, as local airlines tended to fly around Asia and Australia and most did not have established networks with Europe or US airports.
Azmir said, 39 of 42 commercial airports were being operated by Malaysia Airports Holdings Berhad under an operating agreement. “That is, in effect, a monopoly or near-monopoly industry structure,” he said. “The process of introducing greater competition in the airport sector in Malaysia should be done gradually and judiciously. The whole situation of there being a handful of profitable airports and there being quite a number of non-profitable airports would allow a situation where an investor may cherry-pick a profitable airport,” he said, adding that this could have a detrimental effect on MAHB.
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