Skypark wants to redevelop Terminal 2

Subang SkyPark Sdn Bhd, the manager of Terminal 3 of the Sultan Abdul Aziz Shah Airport in Subang, is in talks with Malaysia Airports Holdings Bhd (MAHB) to redevelop Terminal 2, which has been vacant since November 2009 after the airport operator relocated its corporate headquarters to Sepang.

We want to redevelop Terminal 2 like what we did with Terminal 3 (now known as SulDang SkyPark) to meet the increased need for aircraft parking space. Already, there is a shortage of aircraft parking space at Subang SkyPark as Firefly continues to add new ATRs to its fleet,” Subang SkyPark executive director Tan Sri Ravindran Menon told SunBiz in an interview.

Firefly and Berjaya Air currently fly out of Subang SkyPark, operating turboprop aircraft like the ATR 72-500 and DeHavilland Dash 7.

“We have been in talks with MAHB for a while now. It recognised the increasing shortage of parking space for commercial aircraft at Subang SkyPark as

Firefly takes delivery of new aircraft and adds more flights, and that it needs to do something about it. We would be the ideal choice for MAHB (to redevelop and manage Terminal 2),” said Ravindr.

Under a separate plan by MAHB, it also intends to relocate Eurocopter Malaysia’s current facility at Terminal 2 airSide to the new Helicopter Centre nearby, which will provide Subang SkyPark with more parking space.

The company expects to get MAHB’s approval this year, and for refurbishment work to take 12 months.

“Plans have been submitted to MAHB for the redevelopment of Terminal 2. We have also been talking to food and beverage (F&B) consultants to ensure that the terminal is turned into a vibrant and thriving place… where people would visit even when they’re not flying. We want to position ourselves as one of the best, if not the best, city airports in the region,” he added.

Ravindran declined to reveal the cost of redeveloping Terminal 2, but according to a source familiar with the matter, it could be some RM2o million.

Subang SkyPark expects revenue to grow 20% this year, as it sees increased aircraft traffic from fixed base operators (FB0s) and a rise in non-aeronautical income earned through the rental of shops and offices and advertising.

“We conduct a rental review every two years. The first review is due this year and we expect an average rent hike of 20%,” said Ravindran.

Subang SkyPark, yet to turn a net profit, expects to do so in io years. It exceeded its revenue target to achieve RM6 -7 million in its first year of operation, to record some R1\49 million last year. The fully refurbished terminal reopened to traffic in October 2009.

“Ninety per cent of our revenue comes from rental of the office and retail lots and advertising. The terminal is currently about 90% occupied.

“The remaining io% is from the fixed base operation business which involves offering services for private and business jets (such as fueling, repairs, parking, tie-down and hangar storage),” he said. A private or business jet typically seats up to 15 people, while a commercial aircraft like the ATR seats 72 people.

Subang SkyPark is now handling an average of too FBO aircraft movements per month.

The company is set to receive a boost in its FBO earnings following the opening of the Customs Inspection Quarantine Complex (CIQ) on May 5. That’s because under a new government ruling, all corporate and private jets must use Subang SkyPark in order to use the CIQ “We have spent R1\42oo,000 on the CIQto ensure that it meets government standards. In addition, we plan to spend some RM8o million this year to develop a regional aviation centre comprising two maintenance, repair and overhaul facilities and ro hangars, which will have a positive impact on our FBO business,” said Ravindran, adding that funding will come from internal funds and bank borrowings.

By Kang Siew Li
sunbiz@thesundaily.com

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