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Malaysia airports company to roll out incentives for airlines 

Malaysian airport operator Malaysia Airports Holdings Bhd (MAHB) is expected this week to offer a new set of financial incentives for airlines that fly out of the 39 airports it operates in the country, which will include rewarding those that show growth in passenger numbers, reported local daily Business Times.

MAHB managing director Tan Sri Bashir Ahmad at a Board of Airline Representatives (BAR-Malaysia), which represents the majority of airlines operating at the KL International Airport (KLIA) in Sepang, said that the company will announce a new incentive programme for airlines this week, but did not give details," an airline source told Business Times.

The expected incentive programme is long overdue and will replace the current scheme, which expired in May 2007 but has since been extended. According to industry sources, new foreign airlines and existing airlines that add new destinations or frequencies to KLIA and other airports in the country will continue to enjoy a waiver on landing fees under the new incentive programme.

"However, the duration of the waiver, whether it is three years or five years, is still being deliberated on, after which discounts on landing fees will be given ," one source said. The current full waiver on parking fees will also likely to be withdrawn.

"Parking will be free for the first three hours, after which airlines will be charged based on the amount of time that their planes spend waiting to take off," the source added.

It was reported that for 2009, MAHB expects passenger numbers passing through its airports in the country to fall by up to 5 percent from 47.45 million last year.

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