MAHB | Annual Report 2020

Malaysia Airports Holdings Berhad 90 >> Our Performance Air Connectivity For Malaysia operations, at the end of 2020, a total of 34 airlines were operating global flights to 29 destinations in 21 countries from Malaysia. During the year, one new passenger airline began flying to Malaysia, namely STARLUX Airlines which commenced a Taipei-Penang route (IATA Code: TPEPEN). No airline had ceased operations in Malaysia in 2020, and although many had temporarily halted their operations in Malaysia, 70% of which had resumed by the end of the year albeit with reduced frequencies. For cargo, four new airlines commenced operations to KUL, namely YTO Airlines, Ethiopian Cargo, Cargolux Italia and My Jet Express Airlines. No new cargo routes were established as the four new airlines were operating existing routes. For operations in Turkey, a total of 38 airlines operate to and from SAW, comprising five local and 33 foreign carriers. Out of the 38 airlines, 32 are passenger airlines while the remaining six are cargo operators. The airport is linked to 35 domestic and 80 international destinations covering 38 different countries. During the year, Pegasus launched a new service to Madinah, Saudi Arabia in January and Karachi, Pakistan in September as well as a new domestic route, Igdır from July. In addition, Anadolujet launched a new service to Cologne, Germany from June onwards. Ma n a g e m e n t D i s c u s s i o n a n d A n a ly s i s Six key priorities for aeronautical business 1 Work with airlines to maintain air connectivity 2 Maintain public confidence in the safety of air travel 3 Improve airport experience to attract and retain passengers 4 Enhance airport infrastructure to build future capacity 5 Leverage on stakeholders to increase passenger numbers 6 Boost cargo business 1. Work with airlines to maintain air connectivity Air connectivity is a critical pillar for the sustainability of our aeronautical business, and one of the key factors is the decision of foreign airlines to resume flying to Malaysia and for local carriers to resume their routes. Malaysia Airports announced three programmes designed to incentivise airlines to resume flights to and from our airports, as well as to ease their cash flow as they too had been impacted by the pandemic. Network Reconnecting Programme Therefore, in July, Malaysia Airports launched the Network Reconnecting Programme (NRP) to facilitate and assist airlines in resuming their services to and from Malaysia. The NRP is a temporary measure and will run for 18 months from 1 July 2020 till the end of 2021. Its primary aim is to secure the commitment of airlines to resume international flights to and from Malaysia as soon as it is practically possible and to position Malaysia as a top-of-mind destination. The NRP helps to recover the network that had been lost as a result of COVID-19. Foreign airlines are given an incentive in the form of a 50% waiver on landing charges for 12 months from the date of the resumption of flights to Malaysia. Strategies, key programmes for 2020 For our aeronautical business to survive the pandemic and grow robustly thereafter, the following were our priorities for the year.

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