Unions urge MAHB to remove WCT Holdings as business partner following Subang Airport re-concession bid

·2-min read
General view of Sultan Abdul Aziz Shah Airport in Subang May 12, 2018. — Bernama pic
General view of Sultan Abdul Aziz Shah Airport in Subang May 12, 2018. — Bernama pic

KUALA LUMPUR, May 10 — Unions with the Malaysia Airports Holdings Berhad (MAHB) in Peninsular Malaysia, Sarawak, Sabah and Labuan have urged the operator to remove WCT Holdings Berhad as its business partner following a re-concession bid for the Subang Airport.

The Malaysian Reserve reported a letter dated to May 6 and addressed to MAHB chairman Datuk Seri Zambry Abdul Kadir, where the unions argued that due to the rapid development of Subang Airport, its operational income has been fairly distributed among the 39 airports run by MAHB around the country.

Noting that the number of passengers for Subang has doubled in capacity to three million passengers yearly, the unions said that MAHB is moving to expand the entire area as it bids to develop an aerospace ecosystem from manufacturing to flight services.

As such it should not give up and allow WCT Holdings to take advantage of the airport, as the unions claimed this may be driven by profit orientation without regard for the impact upon the entire aviation sector.

“This proposal of acquisition and breakaway from MAHB, which has been giving business to them, was supposed to be used to develop the airport together. But [WCT] however, has turned its back on MAHB to take on Subang Airport.

“This is a sign of dishonesty. The unions proposed for them to be removed as MAHB business partner and the operation of Subang Airport (Terminal) should be returned to MAHB immediately,” read the letter.

The letter is reported to have been copied to eleven MAHB board members, including its chief executive officer Datuk Mohd Shukrie Mohd Salleh.

At present WCT Holdings is the operator of the Skypark Terminal of Subang Airport, via its unit Subang Skypark Sdn Bhd.

The construction and property development group’s largest shareholder and chairman is Tan Sri Desmond Lim.

Earlier news reports have said that WCT is seeking to acquire Subang Airport, with a proposal sent to the Transport Ministry.

It has been estimated that MAHB stands to lose up to RM11.9 billion in future revenue, based on the remainder of the Subang Airport concession until 2069.

WCT Holdings Bhd has since clarified that its wholly-owned unit, Subang Skypark Sdn Bhd (SSSB), has proposed a re-concession rather than a takeover of the airport.

In a Bursa Malaysia filing, it said the airport will operate as normal with the government still continuing to own the airport and the land it is located on.

Related Articles Cops reject 583 applications for interstate travel via air at Subang Airport Proposed redevelopment of Subang Airport still preliminary, says Transport Ministry MAHB: Airport takeover by private entity not uncommon

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting