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.