Zambry Has Gone Quiet On Subang Airport All Of A Sudden Is Something Brewing Again


Question mark also on who the MAHB Chairman really wants KLIA's lucrative but necessary aerotrain deal to go to
Puchong, Sunday: Since May, Zambry Abd Kadir has publicly said NO more than once to a proposal by WCT to take over the operations of Subang Airport from the Malaysia Airports Holdings Bhd. Read here and here.
The Malaysian Reserve's report last week Tell us whether the Subang Airport deal is on or off - Both WCT and the Govt have been silent on the proposal, which technically is still on the table does make one wonder, though. 
We know that Zambry is under pressure from people at the top, including from within Muhyiddin's Cabinet, who are clearly supportive of the takeover by WCT, the company led by property tycoon Desmond Lim.
Is Zambry making - or has he made - a U-turn? 
Those close to him say never, he's too seasoned a politician to be bullied. But for the same reason the airport unions are having reservations. They are still waiting to have the first meeting with their Chairman over the matter.
In the meantime, does anyone know if MAHB has awarded the aerotrain project for the KLIA? Talk was that the last Board meeting had agreed to issue a Letter of Intent to Pestech International Bhd and its partner Bombardier for the design, supply, installation, testing and commissioning for contract. 
The MAHB has said the tender process for the aerotrain project has not been concluded. However, it was learnt that the original bank drafts deposited by the companies at the start of the aerotrain tender process have been returned to sender. 
Which means a decision has been made on who the project will be awarded to. Question is, why isn't Zambry making the announcement yet?


p.s Soon after the article on Subang Airport in TMR, my favourite business blogging DJ nuclearmanbursa sent out series of articles on why it doesn't make sense for the Government to allow WCT to take over lucrative Subang. The latest posting H E R E chides the Minority Shareholders Watchdog Group for going M.I.A.


Aren't  you supposed  to be the think-tank and resource centre for minority interest and corporate governance matters in Malaysia.
Please show yourself or will you only appear once the damage is done. 
Do tell us hypothetically, is it  good corporate governance from the eye of  minority  shareholders, if a third party is given a concession  to operate  the Subang Airport. Do take into account the following:
1.  From out of the blue a rival will be created  to compete  with  Malaysia Airports,. Compete for business as well as compete for investors attention  in the capital markets.
2. Overnight, Malaysia Airports,  which operates 39  airports in the country will lose 12.5 per cent of the profitable airports under its control.
Basically  there are less than 8  airports in the country  which are profitable, and Malaysia Airports uses part of this profit to manage  some 30 airports in the country which are losing  money.
3. Malaysia Airports will also lose some eight  routes that Subang Airport manages.   Some 30 airports in Malaysia  serve less than 8 routes.
4 . Considering that the Subang  Airport is and has the potential to earn non capital intensive income,  which analyst term as non aeronautical revenue.  READ; Airport International Council World says non-aeronautical revenues are the major sources of funds for airports to invest in infrastructure and service. Report states 39.9 per cent non-aeronautical revenue? What can minorities do to protect their interest?
5. Is  non aeronautical revenue, similar to RENT SEEKERS,  considering retail  concessions  make up the largest  source of non-aeronautical revenue for airports at 30.2 per cent. Car parking revenue and property revenue/rent are the second and third largest sources of non-aeronautical revenues at 20.1 per cent and 15.0 per cent respectively..
6. Let us  not go into possibilities  or probabilities  of thr  income that may or may not be realized once Subang Airport is given a face  lift . Let us only stick to the facts. 
Is it not factually, correct to state by taking Subang Airport away from Malaysia Airports,  effectively it will  lead to  Malaysia Airports  paying an EXTRA RM60 million a year to finance its debts?


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