MAHB : Introducing Air Recovery Programme

Outperform

News Update

- MAHB will offer new perks in the form of cash to airlines under its new incentive package, Airline Recovery Programme from 1 Jan 2010.

- Under the programme, new airlines flying into KLIA, LCCT and Sultan Abdul Aziz Shah Airport in Subang will receive a cash incentive of RM10/inbound pax for the first twelve months.

- Existing airlines will also benefit as they will be entitled to incentive payments under the new programme.

- While it is unsure how the new incentive would affect MAHB’s revenue and bottomline, we believe additional expenses arising from cash incentives given out to new airlines will likely be offset by additional airport tax revenue brought in by both the existing and new airlines.

- Indicative fair value is RM4.68 based on 12.5x FY12/10 EPS of 32.3 sen.