Govt is studying the Airport Real Estate Investment Trust (REIT) mechanism

SEPANG: The government is currently studying the Airport Real Estate Investment Trust (REIT) mechanism including suitable airports to reduce ownership up to 30 per cent.

Transport Minister Loke Siew Fook said the ministry would need to discuss with the Ministry of Finance on the stake disposal at selected airports in the country.

“However, it is not an immediate decision. We will be looking at it next year to introduce,” he said after the launching ceremony of the Ground Team Red’s Malaysia’s first digital airport control centre, here, today.

The government hope to raise RM4 billion from selling 30 per cent stake of the REIT to private investing institutions.

AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said the low cost carrier (LCC) was not interested in acquiring airports stake in the country.

“We don’t know the full mechanism of the Airport REIT. We think we should focus on the airline business. We just hope, the Airport REIT doesn’t increase cost,” he added.

Fernandes said AirAsia would like to see full airports privatisation allowing new airport operators with different ways of running an airport.

“For us (AirAsia), we want to work with airports. We need airport operator that understands our business model and help us to reduce our cost. Therefore, we can reduce the cost to passengers,” he said, adding that more people can fly and AirAsia can build a very strong hub in Malaysia.

Fernandes said it is not AirAsia’s job to build an airport citing that the LCC did not want to loose focus of running an airline business.

“Our job is to move people from point A to B at the cheapest price at the best value and most comfort,” he said.

Source: NST