Malaysia Airports Holdings Bhd to Reformat 5 Airports as Lifestyle Destination Airports

KUALA LUMPUR, Oct 30 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) is reformatting five of its international airports, positioning them to become lifestyle destination airports, thus helping to increase the retail income to the Group's revenue, said Senior General Manager Commercial Services Mohammad Nazli Abd Aziz. The airports are Langkawi International Airport (LGK), Kuala Lumpur International Airport (KUL), Kuching International Airport (KCH), Penang International Airport (PEN) and Kota Kinabalu International Airport (BKI). Mohammad Nazli said the reformatting exercise, to be undertaken in phases, started at LGK in the fourth quarter last year and is about to complete. The entire exercise would likely take up to five years to be fully completed, he said, declining to reveal the capital expenditure for the reformatting initiative. "The aviation industry is going to grow at least three times in the next 10 years, so the minimum for retail businesses to grow is also about three times. "We are investing in the technology infrastructure that has retail analytics...the aim is to make sure customers benefit (from this e-commerce)," he told reporters after holding a briefing on the airport reformat initiative. Mohammad Nazli said the airport operator has opened the tender for retail landside in KUL recently, while the tender for retail landside in PEN would be opened in mid-November and for KCH in end-November. The tender for retail landside in BKI and satellite landside in KUL would be opened in the second quarter next year, he said. The priority for the new retail outlets would be high-end fashion, food and beverages, and duty-free products, he added. Following the reformatting exercise, he said MAHB aims to increase income contribution of the non-aero segment, which includes land development, hotel and retail, to the Group's revenue to 60 per cent from the current 50 per cent. -- BERNAMA