R E G I O N F O C U S
Currently, Subang Airport
Regeneration is at the master
planning stage, which is expected
to complete by mid-2020. The
development plan is expected to
commence following the completion
of the masterplan. It is hoped that the
business aviation hub will become a regional
hub with a full suite of value chain and services linked to
the business aviation sector, connecting high net worth
individuals and attracting investments along the way.
“To grow further, the airport infrastructure needs to be
upgraded and marketed as business aviation friendly,”
says Ivan Lim, vice president at ExecuJet MRO Services
Malaysia. “It is encouraging to note that Malaysia Airports
has already started to embark on this via its Subang Airport
Regeneration development plan. The focus is currently on
Subang Airport due to the fact that it is the business aviation
hub of Malaysia, but in due time other airports in Malaysia
will be considered as well.
“We are moving in the right direction. The government is
supportive of the aviation industry as the country positions
itself to be an aviation hub in the region. From an industry
perspective, more business aviation operators are now
significantly experienced compared with recent years. The
presence of a few major business aviation players in the
country certainly helps,” adds Lim.
Facing challenges
Despite the positive action being taken to transform
Malaysia’s business aviation offering, the mission isn’t
without its challenges. These include slot unavailability,
parking congestion, high parking charges and inadequate
space for infrastructure development.
28 | BU S INE S S A I R P O RT INT E RNAT I ONA L O C TO B E R 2 0 1 9
Skypark FBO, the country’s
busiest and dominant FBO,
has handled 40 to 50
arriving and departing
flights each month this
year. Despite the repeat
clients, key issues are
stunting faster growth.
“The key obstacles are
a decline in the number of
movements due to the global
economic crisis, increasing
competition around the region
offering hangar parking space, and
pressure from escalating fuel prices, foreign
exchange volatility and overcapacity in the
domestic market,” says Hariss Abdullah,
general manager at Skypark FBO.
“To combat this, there needs to be a
focus on improving yield through better
pricing strategies, especially on premium
segments of chartering a private jet. There
should be a reconsidering of the permit
approval period for a private jet and all
parties and organizations must offer support
to Malaysian operators. With full support
from all agencies such as the government,
tourism, the private sector in addition to
economic growth, the business aviation
market in Malaysia will be successful,”
he adds.
The Asian Business Aviation Association
(AsBAA) acknowledges its role in
accelerating the industry and is involved with
the Subang Airport Regeneration program.
“Malaysia is very business aviation
friendly,” comments Emil Pope, member of
the AsBAA board of governors. “The country
offers the perks of nearby countries such as
Singapore, Indonesia and Thailand without
the congestion, restrictions or limitations.
“Malaysia needs more FBOs in principal
cities such as Penang, Johor Baru, Ipoh,
Melaka, Kota Kinabalu and Kuching, all with
additional parking, MRO and other popular
incentives for the industry. There is great
potential and significant room for growth.”
Looking forward
There is clear potential for a boom in
Malaysia’s business aviation sector if these
challenges can be overcome.
“The key success factors for the
promotion of business aviation in Malaysia
would be 24 hour operational flexibility
so that scheduled flights cannot hamper
private and charter operations,” says Frost
& Sullivan’s De.
“In addition, landing and parking permits
that have extensive documentation and
long lead times are areas which could use
digitalization. Enabling real time booking
and online approval for landing requests
and permits is crucial. Long term parking
and hangar options for private aircraft
owners are also necessary.
“At the same time, business aviation
users prefer a dedicated and private
terminal, including CIQ facilities away
from commercial airline operations.
Strict enforcement of rules, regulations
and contracts in the airport to maintain
discipline is a key requirement. Customs
clearances for aircraft parts without any
delays in clearance would support MROs to
reduce their turnaround time for repairs and
maintenance activities.
“If Malaysia does not act in time, the
Philippines is next in the queue as a key
business aviation hub, as the country is
advancing its supporting infrastructure and
policies at a rapid rate,” concludes De.
Subang’s Sultan
Abdul Aziz Shah
Airport has around
3,200 business jet
movements per year
Below & right: Execujet MRO
Services at Subang Airport
operate in a 64,000ft2 facility