MAHB: AirAsia received most incentives over 10 yrs (Update)

by **Cals** Sun 23 Feb 2014, 05:51

Published: Friday February 21, 2014 MYT 4:47:00 PM
Updated: Friday February 21, 2014 MYT 5:31:24 PM
MAHB: AirAsia received most incentives over 10 yrs (Update)
BY JOSEPH CHIN
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Responding to comments by AirAsia boss Tan Sri Tony Fernandes that Malaysia Airports Holdings Berhad (MAHB) had to start churning profits to avoid burdening taxpayers, MAHB says it has remained profitable over the last 15 years, and points out that AirAsia itself has been a beneficiary of its strong financial performance.
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB), responding to comments by Tan Sri Tony Fernandes that MAS and MAHB were burdening taxpayers, saidAirAsia Bhd had received the most incentives over the last 10 years, pointing out that MAHB had even introduced an incentive programme to support the low-cost carrier’s growth.
In a statement issued on Friday to clarify comments made by the AirAsia boss, it said since 2002, AirAsia has been a beneficiary of MAHB's strong financial performance.
“It (AirAsia) has received the most incentives over the last 10 years from MAHB despite it not being the airline that contributed the highest number of passengers or revenue.
“MAHB had specifically introduced an incentive programme to support the growth of AirAsia at its infancy stage. This had facilitated AirAsia's growth to become the successful airline that it is today,” it said.
Below is the statement issued by MAHB:

MAHB clarifies on Tony Fernandes's statement

SEPANG: We refer to the following statements made by Tan Sri Tony Fernandes, CEO of Air Asia Group, reported in Malaysian Insider and Malaysia Kini on 19 February 2014, as well as in other media:-

1. "...... Fernandes said that MAS and Malaysia Airports Holdings Berhad (MAHB)have to start churning profits to avoid burdening taxpayers."

2. "Fernandes, meanwhile, criticised MAS and MAHB's continued spending and losses."

3. "It's supposed to be profit-making. This just hurts decent players in the business when they're spending like there's no tomorrow," said Fernandes. "

This has resulted in several enquiries being directed to MAHB especially by the shareholders. While it is not MAHB's policy to comment on statements made by our partners but in this case we had been advised that as a public listed company, we need to correct the information related to MAHB.

MAHB wishes to clarify that since it was incorporated 22 years ago, its financial performance has been showing consistent profits yearly.

Over the last 15 years since being public listed, MAHB has continually paid the concession fees and taxes to the government, issued dividends to shareholders, paid incentives to airlines, and remained profitable.

Since 2002, AirAsia has been a beneficiary of MAHB's strong financial performance as it has received the most incentives over the last 10 years from MAHB, despite it not being the airline that contributed the highest number of passengers or revenue.

MAHB had specifically introduced an incentive programme to support the growth of AirAsia, at its infancy stage. This had facilitated AirAsia's growth to become the successful airline that it is today.