MALAYSIA AIRPORTS HOLDINGS BERHAD ANNUAL REPORT 2022 SEC 01 03 02 04 05 06 26 Driving network connectivity and international routes Malaysia reopened its international borders in April to international travellers with testing requirements in place, and in the following month, relaxed travel requirements for fully vaccinated travellers, before dropping the remaining travel restrictions in August. In anticipation of the reopening Malaysia’s borders, the Group had accelerated efforts to restore pre-pandemic network connectivity. Focusing primarily on returning current airlines, we established partnerships with strategic airlines to accelerate their operational plans and extended the Network Reconnecting Programme for airlines which had yet to resume operations into our network of airports. The focus remained on markets such as ASEAN, India, the Middle East, Europe and North Asia as China, which was one of our main markets pre-pandemic, remained largely closed for international travel for most of 2022. As a result, a total of 17 airlines had resumed operations into Malaysia as at end-2022, serving 32 cities around the globe. This includes new foreign services by three airlines – Lanmei Airlines, Kuwait Airways and Spring Airlines. In addition, two new local carriers were launched in the year – SKS Airways and MYAirline. By end2022, there were 59 airlines operating to 84 international and 35 domestic destinations at all airportsmanaged by Malaysia Airports in Malaysia, compared to 48 airlines to 51 internationals and 32 domestic destinations in 2021. At SAW, two new airlines – Iraqi Airways and Air Arabia Abu Dhabi – began operations in 2022 while four new international destinations were added to SAW’s connections. In addition, the airport’s major MANAGING DIRECTOR’S MESSAGE airline partners – Pegasus and Anadolu Jet – are utilising bigger A321Neo aircraft with an additional 20% capacity and are utilising their existing landing slots for international routes. The airport is well connected to 110 international and 39 domestic destinations and served by 44 airlines. Greater cost and operational efficiency While the recovery of the aeronautical business was a key driver for Malaysia Airports’ return to profitability, the unsung heroes were the enhanced cost and operational efficiencies that the Group had achieved. Therefore as revenues grew, the Group continued to sustain significant cost efficiencies from initiatives implemented in the previous financial year together with fresh initiatives to improve processes and workflows. Together with improving revenues, this sped up the Group’s recovery in 2022. First, Malaysia Airports continued to sustain cost efficiencies from prior initiatives. For example, the joint venture with TNB Engineering Corporation Sdn Bhd has enabled the Group to reduce its cooling costs by 37.8% YoY, with chilled water costs reducing by RM36.3 million to RM59.8 million in 2022 from RM96.1 million in 2021. This reduces the per unit cost (RM/kwhR) for chilled water by almost half to RM0.190 in 2022 from RM0.375 in 2021, a 49.3% savings.
RkJQdWJsaXNoZXIy NTkwNzg=