KL offers free landing to lure airlines

KL offers free landing to lure airlines

KUALA LUMPUR (Reuters): Malaysia said on Friday foreign
carriers inaugurating flights or adding operations to Kuala
Lumpur will enjoy free landing and parking rights.

The concession is a bid by the Kuala Lumpur International
Airport (KLIA) to lure back international traffic after a recent
spate of pull-outs by several carriers.

But it could also mean less revenue for Malaysia Airports
Holdings Bhd, the country's largest airport operator which is
struggling to turn KLIA into a regional air hub.

British Airways and Japan's All Nippon Airways (ANA) last
month ended their unprofitable flights to Malaysia, the third and
fourth carrier to pull out since the billion-dollar KLIA opened
in mid-1998.

Transport Minister Ling Liong Sik said the new incentive,
which would take effect on May 1, would run for an unspecified
period.

However it would be extended only to passenger flights with a
minimum loading of 25 percent for flight, the national Bernama
news agency quoted Lim as saying.

"This is a major decision to encourage more airlines to come
here and bring more people to Malaysia. The 25 per cent minimum
loading is practical," he said.

BA abandoned its Kuala Lumpur-London route last month, saying
it was losing 12 million sterling ($17.28 million) annually.

Australia's Qantas Airways stopped flights in April 2000 after
consolidating with BA. German carrier Lufthansa AG ceased flying
to KLIA in September 1999.