KLIA, klia2 to be rebranded as KLIA Terminal 1 and 2

KLIA and klia2 will be renamed KLIA Terminal 1 and KLIA Terminal 2, Transport Minister Loke Siew Fook has announced.

Loke said the ministers believe that this will improve the business and performance of the airport, and help it compete with other international airports in the region. However, he did not specify when this would be done, saying the government and Malaysia Airports Holdings Bhd (MAHB) should first renew their new operating agreement.

“The government and MAHB would like to finalize and sign the 2023 agreement and other related lease agreements before the end of the first quarter of 2023,” he told reporters here. Loke also said that the Cabinet has agreed on new measures under the service agreement between Putrajaya and MAHB for the operation, management, maintenance and development of 39 airports and airports in Malaysia until 2069.

He said the agreement will give the government and MAHB flexibility to pay for the development of the airport. “This will be done through government development expenditure or through any appropriate recovery mechanism of MAHB.

“This will be subject to a mutual agreement between the two parties with a heavy capital cost, which will only be determined when the work will be carried out with the support of the government.”

Loke added that an airport development fund will be established under the agreement and no government funds will be invested. Instead, he said, the money will come from donations from airport staff, the public and airlines.

“Half of the Passenger Service Equipment (PSC), which is included in the calculation of the employee’s salary, will go into the trust account of the fund. “The percentage of PSC or other elements in the employee’s salary will be reviewed every three years,” he said.

Loke also said that the new terms of employment agreement will allow the government and MAHB to implement competitive business development plans, demonstrating its ability to improve the government’s revenue through the allocation of funds. He added that its implementation will help MAHB prepare a better long-term development plan for all airports under its jurisdiction.

It will allow MAHB to help reduce the burden on the government by paying for the creation of a competitive airport in the future. “It is hoped that this will help enhance the global competitiveness of the country’s air travel services and revitalize the aviation sector for the benefit and well-being of the people.”

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