MAHB to gain from MAS

MAHB to gain from MAS

KUALA LUMPUR (Reuters): Malaysia Airports Holdings Bhd (MAHB) said on Thursday it would gain from an expected turnaround at national carrier Malaysian Airline System (MAS) and a tie-up with Dutch airport operator Schiphol International BV.

"An expected turnaround of MAS will contribute positively towards MAHB's financial performance," executive director Adnan Shamsuddin said at a company briefing.

Malaysia's biggest airport operator posted a net profit of 101.76 million ringgit (US$26.7 million) for the six months to end-June, barely changed from 103.56 million in the same period a year ago.

MAS unveiled in May a restructuring plan aimed at nursing the ailing carrier back to profitability by 2004.

The airline is set to post its fifth successive year in the red. For its first financial quarter to end-June, MAS reported a net loss of 413.8 million ringgit.

Adnan said state-controlled MAHB would also benefit from its strategic alliance with Schiphol.

The Malaysian government announced last month that it had signed a preliminary agreement to sell a 30 percent stake in MAHB to Schiphol.

"We hope to capitalize on their experience and turn KLIA into a major airport," Adnan said, referring to the new but under- utilized Kuala Lumpur International Airport.

Schiphol is Europe's fourth busiest airport.

The ultra-modern KLIA has been hit by a spate of pull-outs by foreign carriers since it opened its doors in June 1998.

Adnan said MAHB was also reviewing its non-core businesses, but he did not elaborate.