Our Value Creation Strategy Our Performance Our Governance Additional Information 47 Catalysed traffic recovery and enhance network connectivity through strategic collaboration with airlines and other stakeholders • Collaborative efforts with stakeholders to enhance Malaysia’s appeal as a destination: - B ecame a member of the Matching Grant Evaluation Committee (Penilai Geran Sepadan Penerbangan Antarabangsa dan Charter - GSPC) under Tourism Malaysia to evaluate proposals by airlines to ensure tourism promotion strategies are aligned. - J oint pursuit and strategic collaboration with State Tourism Offices i.e. Penang Global Tourism to attract Qatar Airways to resume their services into PEN by showcasing the market potential and demand for air travel. - T he creation of the National Air Connectivity Development Committee (NACDC) spearheaded by the Ministry of Transport (MOT) in collaboration with key industry stakeholders aimed at bolstering connectivity into Malaysia. • The Group network of airports has seen encouraging signs of increasing air travel demand with annual passenger traffic and capacity recovery in FY2023 reaching 84.6% and 88.5% of 2019 levels respectively: - C ommencement of ten new international services into KUL (Shenzhen Airlines, Super Air Jet, TransNusa, SalamAir, Sichuan Airlines, Xiamen Air, Air China), BKI (T’way Air), KCH (Indonesia AirAsia) as well as PEN (Xiamen Air). - Resumption of daily services by Qatar Airways into PEN and several Chinese carriers into Malaysia i.e. Air China into KUL, China Southern Airlines into BKI and PEN, following relaxation of travel restrictions by the Chinese government. • To foster traffic rebound and growth, two incentive programmes are in place: - L aunch of the new Airline X-celeration Programme in January 2023 aimed to incentivise airline partners to diversify their network offerings by introducing new services. - C ontinuation of the Special Incentive Programme introduced in July 2022, geared towards expediting airlines’ operational plans and enhancing hub capabilities through collaborative efforts. Key Activities that Created Value in 2023 Attract reputable carriers to operate into Malaysia, enhance accessibility, and strengthen connectivity to the West, West Asia and India to support KUL’s growth as a regional hub. OUR STRATEGY 1) Strengthen Western Connectivity by leveraging on KUL’s strategic location and actively engaging key oneworld carriers to establish operations into KUL. This effort will be supported by an enhanced incentive programme to attract and retain these carriers. 2) Enhance West Asia Network Expansion from Malaysia by capitalising on the growth of West Asian and Middle Eastern carriers’ mega hub network. 3) Pursuit of India-based carriers into the Group's airports, leveraging on India’s promising market potential. 4) Continuous collaboration with Tourism Malaysia and State Tourism offices by actively engaging key airlines along with NACDC's support. 5) Hosted Routes Asia 2024 in LGK in February 2024 together with Tourism Malaysia. This event brings together airlines, airports and tourism authorities to drive Asia Pacific's air service development and continue to fuel the region's aviation recovery. Besides serving as a networking and knowledge sharing platform, we believe that we will be able to enhance our visibility, strengthen our relationship with key industry partners and position ourselves as a leader within the industry. Short to Medium Term Focus ENHANCING AIRLINE AND HUB CONNECTIVITY
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