87 Our Performance S0 S1 S2 S3 S4 S5 ANNUAL REPORT 2021 MANAGEMENT DISCUSSION AND ANALYSIS AIRPORT OPERATIONS Malaysia Airports’ business operations comprises airport as well as non-airport operations. Airport operations cover the two major revenue streams derived from aeronautical business and non-aeronautical business. These two revenue streams form the bulk of the Group’s revenues. Non-airport businesses comprise the hotel, agriculture and horticulture as well as project and repair maintenance businesses. Beyond that, there are landside development activities relating to the use of our landbank around the airports which we operate primarily around KUL, SZB and PEN. The aeronautical business derives its revenues from airlines and passengers who use our airports, as well as cargo which is transported through our airports. The main categories of revenues are passenger service charges, aircraft landing and parking charges and charges for use of airport facilities. These aeronautical revenues are strongly correlated with the volume of airlines, passenger numbers (in particular, a higher proportion of international passengers) and cargo handled using our facilities. In 2021, while travel restrictions on international and domestic travel affected airport operations in Malaysia causing a decline in passenger numbers by 58.3% YoY, the operating environment in Türkiye enabled SAW to make a commendable recovery with passenger movements growing 47.4% YoY. As a result, passenger movements for the Group declined by 16.0% YoY. Aeronautical revenues amounted to RM798.1 million, a YoY decline of 9.9%. Operations in Malaysia contributed RM239.5 million, a YoY decline of 53.9% while aeronautical revenues from Türkiye operations contributed RM558.6 million, a YoY increase of 52.1%. OPERATIONS REVIEW AERONAUTICAL BUSINESS Primed to Reconnect The highlight of our aeronautical business was KUL and LGK winning Best Airports awards in the Asia Pacific in Airports Council International’s rankings for service quality. Our aeronautical business activities focused on increasing capacity and to ensure that our airports are primed for the resumption of travel.
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