New airports boss urged to protect Subang from takeover

New airports boss urged to protect Subang from takeover

Ledang MP Syed Ibrahim Syed Noh says Iskandar Mizal Mahmood should work in the national interest.

Group CEO Mohd Shukrie Mohd Salleh was replaced amid renewed fears of a takeover of the highly profitable Subang airport.
PETALING JAYA:
Subang airport must be protected from any takeover attempt, an MP said today in urging the new managing director of the country’s main airport operator to work in the national interest.

Syed Ibrahim Syed Noh of PKR, who is MP for Ledang, said: “My call to the Malaysia Airports’ new managing director is to work for national interest, the company’s stakeholders, employees and the rakyat.

“Put Malaysia on the map as a global aviation hub but ensure transparency, integrity and good governance.”

Iskandar Mizal Mahmood, former group managing director of Media Prima, was announced as the new managing director of Malaysia Airports Holdings Berhad.

The announcement came in the wake of reports that a key MAHB stakeholder was seeking to replace group CEO Mohd Shukrie Mohd Salleh despite the board’s acknowledgement of his performance.

Mohd Shukrie resigned hours after Iskandar’s appointment was announced.

The reports revived fears of a takeover of the highly profitable Subang airport by a private company, something Mohd Shukrie had been firmly against.

Syed Ibrahim said Iskandar, like Mohd Shukrie, must protect the airport from being taken over by a third party.

It was previously reported that WCT Holdings Bhd, whose subsidiary Subang SkyPark operates Subang airport on a concession, was seeking to acquire and operate the airport until 2092.

However, WCT has said the proposal submitted to the government was for a renewed concession and not a plan to acquire the airport, officially known as Sultan Abdul Aziz Shah Airport. The proposal has been panned by transport experts and politicians alike.

Concerns within MAHB over the Subang airport stem from it being a key component of its airport network. Of the 39 airports under MAHB’s purview, only eight, including Subang airport, are profitable.

According to the 2009 operating agreement between MAHB and Putrajaya, the government can terminate the concession to operate KLIA and designated airports, including Subang, for reasons of national interest or security.

Should this happen, the government will be required to compensate MAHB an amount to be determined by an independent valuer appointed by the government and MAHB.

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