NEWS/ANALYSIS: MALAYSIA AIRPORTS HOLDINGS
MAHB commercial re-set makes instant impact at Langkawi International Airport
based on data, said Nazli. “It is a data- driven project. “We understood the needs of the
passengers flying into Langkawi and catered to their demands.” Over at Kuala Lumpur International
Airport (KLIA), MAHB is already on its third wave of tenders. This includes the all-important arrivals duty free bidding process which commenced in August 2018. “We received very good
Currently in the midst of a phased commercial re- set across its international airports, Malaysia Airports Holdings is adopting a practical approach to ensure everything goes according to plan, as Andrew Pentol reports.
L
ast year at the TFWA World Exhibition and Conference Mohammad Nazli Abdul
Aziz, Senior General Manager for Commercial Services, Malaysia Airports Holdings told TRBusiness the airport operator was about to embark on a commercial re-set encompassing all its international airports. Nazli also revealed Malaysia
Airports Holdings Berhad (MAHB) experienced a ‘bumper’ 2017 in which total sales grew +24% to RM2.6bn ($619m). Seven months on, there is plenty
for MAHB to look forward to despite sales last year failing to increase at anywhere near the rate registered in 2017. “We are a bit sober this year and not as bullish as we were in 2018,” he
“We received very good submissions and the verdict is still under consideration. This is because we take arrivals duty free very seriously as not many countries allow it.”
Mohammad Nazli Abdul Aziz, Senior General Manager for Commercial Services, Malaysia Airports Holdings
18 TRBUSINESS
told TRBusiness. “This is because we have embarked on our commercial re-set. We made RM2.7bn in sales in 2018, a modest increase of about 3%, but great things are happening.” On the progress of the commercial
re-set Nazli said: “We started at Langkawi Airport and made it in time for the International Maritime Exhibition, which took place in March. “We are being very practical
and not approaching it in one go. We are doing so in phases so there are no revenue gaps and shocks to the system.”
Instant impact If the impact of the commercial re-set at Langkawi International Airport is anything to go by, there is plenty for MAHB to be excited about. Nazli explained: “We recently
undertook a six-month year-on-year performance evaluation at the airport and are proud to say that liquor and tobacco sales increased 11% year- on-year. “Sales of perfumes and cosmetics
and beauty and bodyworks also rose 7% and 100% respectively.” The reason for these increases is because the approach to the re-set is
submissions and the verdict is still under consideration,” said Nazli. “This is because we take arrivals duty free very seriously as not many countries allow it. “The business has always been
good for us and with the commercial re-set in place, we are receiving a lot of interest from big players around the world. “We want to do this right and are
taking a little more time to measure and decide who will be the best consortium or company to come and present this arrivals duty free concept for us.” Offering an update on the planned
departures duty free tender at KLIA, Nazli said the commencement of the bidding process would be slightly delayed. “As you know, KLIA is the main
gateway into the country, but at the moment there is a capacity issue. “The airport is designed to handle
25m passengers per year, but we are consistently accommodating 29m. Last year, the figure actually reached 30m. “We are looking into undertaking
a study geared towards the future visioning of KLIA. This could result in an expansion of the airport or an additional satellite building.” In terms of a potential timeline
for the departures duty free tender he concluded: “We are in-between studies but have just obtained approval from the board on the way forward. “The market can expect an
announcement in the second half of the year.” «
JUNE 2019
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