Malaysia Airports Signs MoU With GHIAL To Further Expand Commercial Opportunities
Malaysia Airports Consultancy Services Sdn. Bhd. ("MACS"), a wholly owned subsidiary of Malaysia Airports Holdings Berhad has entered into a Memorandum of Understanding (MoU) with GMR Hyderabad International Airport Limited ("GHIAL") to provide technical services to GHIAL for commercial projects to be developed by GHIAL
CHENNAI, 25 January - Malaysia Airports Consultancy Services Sdn. Bhd. ("MACS"), a wholly owned subsidiary of Malaysia Airports Holdings Berhad has entered into a Memorandum of Understanding (MoU) with GMR Hyderabad International Airport Limited ("GHIAL") to provide technical services to GHIAL for commercial projects to be developed by GHIAL.
Upon the identification of a commercial project, both parties will negotiate and enter into an independent agreement which will define the scope of technical services, payment of fee, obligations and responsibilities of each party in the respective commercial project.
At the signing ceremony held on 22 January, Malaysia Airports was represented by its Managing Director, Tan Sri Bashir Ahmad while Mr. Kiran Kumar Grandhi, Business Chairman Airports of the GMR Group signed on behalf of GHIAL, in the presence of YAB Dato' Sri Mohd Najib Bin Tun Hj Abd Razak, the Prime Minister of Malaysia.
Tan Sri Bashir Ahmad said: "This agreement will enable Malaysia Airports, through our subsidiary MACS to further explore and venture in commercial opportunities with GHIAL particularly for the Rajiv Gandhi International Airport in Hyderabad."
He added: "One of the most important benefits from this project is the ability to further expand our consultancy expertise in the area of commercial activities. Commercial activities at the airport comprise operation of retail outlets, food and beverage outlets, advertising, parking facilities and hotel management."
Tan Sri Bashir also said: "This agreement augurs well with our target to enhance revenue from non-aeronautical activities. More importantly, the agreement allows us to exercise our expertise in the commercial field."
GHIAL and Malaysia Airports have established good relationship since 2002 when Malaysia Airports and GMR partnered for the development and operation of the Hyderabad International airport. This MoU will further enhance the collaboration between the two companies.
Mr G.M. Rao, Group Chairman of GMR Group said: "The GMR Group cherishes the wonderful relationship with MAHB that has been built over the years, and we are very confident that in the coming years, this bond will be further strengthened. Tan Sri Bashir's role in furthering this association over the last eight years has been admirable".
MACS was established as a private limited company to provide management, maintenance and technical services in airport operation, development and services. Currently, MACS provides consultancy service to Delhi International Airport Limited (DIAL), and also to Sabiha Gokcen International Airport, Turkey, where Malaysia Airports has 10% and 20% equity respectively.
GMR Hyderabad International Airport Limited is a company incorporated in India to develop, operate and manage the Rajiv Gandhi International Airport in Hyderabad. Malaysia Airports has 11% equity in GHIAL through MAHB Mauritius Pte. Ltd, while other shareholders are GMR Infrastructure, Airport Authority of India and The State Government of Andhra Pradesh.
Malaysia Airports' involvement in GHIAL for the Rajiv Gandhi International Airport, Hyderabad is for 30 + 30 years concession period, which runs until 2038.