Malacca airport to offer incentives to carriers

12 November 2009

MALACCA: The Transport Ministry has agreed to provide the Malacca International Airport several incentives to help spur its usage by air carriers.

This includes considering granting AirAsia rights to six destinations in Indonesia.

Chief Minister Datuk Seri Mohd Ali Rustam said the state hoped to see several low-cost carriers establish operations at the airport which would be officially opened by Prime Minister Datuk Seri Najib Tun Razak on Jan 15 next year.

Mohd Ali said he received a letter from Transport Minister Datuk Seri Ong Tee Keat on Thursday.

“He (Ong) said the airport will enjoy benefits under the Government’s incentives schemes to promote tourism in Malaysia,” he told reporters during a break at the State Legislative Assembly here Thursday.

This include a RM25 incentive for each incoming passenger for the first 12 months for new airlines flying to new routes or increasing flight frequency.

Another benefit is the RM10 to RM15 incentive for each incoming passenger after the period, depending on the performances of the air carriers.

Also included is a deferment of landing charges for three years and six-month rent-free office space for those setting up operations at the airport.

He also said the ministry would also consider AirAsia’s request to fly to six destinations in Indonesia once the governments of both countries concluded their air rights agreement.

Among the destinations AirAsia is looking at are Jakarta, Padang, Palembang, Pekan Baru, Medan and Denpasar.

Mohd Ali said Malaysia Airlines, its subsidiary Firefly and low-cost carriers from Indonesia and the Philippines had indicated interest in using the airport here.