KUALA LUMPUR – The billion-ringgit expansion of Penang International Airport (PIA) has been postponed until the aviation industry recovers to its pre-pandemic levels, which is only expected in 2025.
Transport Minister Datuk Seri Wee Ka Siong said the government had no choice but put a temporary stop to the project, considering the financial incapability of Malaysia Airports Holdings Bhd (MAHB) in funding the expansion.
Speaking in Parliament, the MCA lawmaker noted how the grounding of flights due to travel restrictions caused by the Covid-19 pandemic has led the national airport operator to incur huge losses.
He pointed out that the number of passengers declined considerably from 2019, when Malaysia recorded 109 million arrivals. Last year, the figure dropped to 26 million, while the first half of this year saw only 3.6 million passengers.
Wee added that since the start of the pandemic, MAHB has also spent about RM140 million a month to maintain 39 airports under its purview, with about RM2 billion spent to date for this purpose.
“As such, considering the cash flow, we have no choice but to postpone (the expansion until the industry recovers).
“Based on projections by the International Air Transport Association (IATA), we will only recover to pre-Covid-19 levels in 2025. We have to reschedule what has been planned,” he said in his ministry’s winding up speech for the 12th Malaysia Plan today.
Previously, it was reported that MAHB will spend about RM1.2 billion to expand PIA, which will see its capacity increasing from 6.5 million passengers annually to 12 million.
The expansion project was originally scheduled to begin early last year, but the emergence of the coronavirus has put a dent to the plan.
Wee said while waiting for the industry to recover, and subsequently allow the expansion to take place, the government will look to address other issues such as the acquisition of lands surrounding PIA.
He said he has also had a discussion with Penang Chief Minister Chow Kon Yeow on the issue of land.
On updates pertaining to the development of the Kulim International Airport (KXP) spearheaded by the Kedah government, Wee said the National Physical Planning Council had decided on August 13 last year that the project is only allowed for planning at the moment.
“This means the final approval will still be subject to the Transport Ministry,” he said.
Wee said the ministry will also consider the necessity to build another airport close to PIA, especially if KXP is only meant to complement the Penang Airport.
“If KXP is meant only as a complement, then the priority will be given to PIA. We are still waiting for the KXP team of experts to convince us (the need for the airport).” – The Vibes, October 5, 2021
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