MAHB reformatting its retails spaces at international airports
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) will position its five international airports in Malaysia as lifestyle and shopping haven destinations in the Asia Pacific region.
The five international airports are Langkawi International Airport, Kuala Lumpur International Airport (KLIA 1 & 2), Penang International Airport, Kota Kinabalu International Airport and Kuching International Airport.
MAHB senior general manager commercial services Mohammad Nazli Abdul Aziz said the airport operator had begun reformatting the airports retail spaces, which will be carried out in phases.
“The reformatting works will take within three to five years to be completed. Our airports non-aeronautical business contribution will be largely driven by high-end fashion, food and beverages and duty-free sales in the future,” he told reporters at MAHB commercial reset strategy briefing here, yesterday.
He said MAHB had begun reformatting works at their retail spaces in Langkawi, while the remaining airports would begin its tendering work in the fourth-quarter.
The airport operator also targeting over RM600 million in non-aeronautical revenue contribution by 2021, leveraging on the high yielding product categories.
Mohammad Nazli said MAHB expected more high-yielding product categories to increase passengers’ spending at its airports.
MAHB targets to increase four times or RM140 from the current RM35 per passenger spending across its network of airports within five years.
He said the anticipated increase in passenger’s spending will be supported by MAHB’s retail reformatting, fuelled by retailers investments at its fit-out spaces.
“The aviation industry is going to grow at least three times in the next 10 years. Hence, minimum retail business will also grow about three times,” he said.
Mohammad Nazli Abdul Aziz said the airport operator’s non-aeronautical revenue contribution would be supported by the influx of growing middle-class passengers, particularly in Asia Pacific.
“We want to be competitive as our regional peers. Our airports are now reaching capacity very fast with the combination of the right location, lower travelling cost and affordable currency, making Malaysia as the sought after holiday’s destination among tourists,” he said.
With that opportunity, he said MAHB can double up its retail business backed by the growing middle class population like the Chinese, Indian and Indonesia.
Source: NST
