Malaysia Airports eying Schipol as partner

Malaysia Airports eying Schipol as partner

KUALA LUMPUR (AFP): Malaysia Airports Holdings said Wednesday it was in talks with the Netherlands' Schipol group and other airport operators for a possible tie-up to make the country a regional aviation hub.

Malaysia Airports, which operates the country's airports including Kuala Lumpur international airport (KLIA), however said it has not reached a deal with any party.

"Many proposals were reviewed and discussed including the sale of shares by the major shareholders. There has been no agreement with any party," it said in a statement to the stock exchange.

Malaysia Airports was replying to a query on a newspaper report that the government would sell up to 30 percent in the company to Schipol, which operates Amsterdam airport.

A sale and purchase agreement for the deal worth around one billion ringgit (US$263 million) was expected to be sealed by the end of June, the Star daily quoted sources as saying.

The report lifted Malaysia Airports' shares to close up 0.42 ringgit at 2.00.

Analysts welcomed the news, saying it would boost Malaysia Airports' revenue and boost efforts to turn KLIA into a regional hub after it was hit by the withdrawal of five airlines since it opened in June 1998.

"This is a good move. If it is true, it means that they (Schipol) will become our European hub," an aviation analyst with a local brokerage told AFX-Asia, an AFP-owned financial news wire.

Another senior analyst said Malaysia Airports could tap into the expertise and financial strength of the Schipol group.

The entrance of a foreign partner would also boost Malaysia Airports' corporate governance and expedite the streamlining of its business activities, he said.

"The company clearly needs a strong strategic partner to promote KLIA as a regional hub and capture market share from rival Singapore Changi airport," he added, noting that Thailand was also planning to build a new international airport.