MAHB targets Ebitda RM773.4m, ROE 10.73%, top 5 global ranking under 2011 headline KPIs

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is targeting earnings before interest, tax, depreciation and amortisation (Ebitda) of RM773.4 million; return on equity (ROE) of 10.73% and a top 5 worldwide ranking for KLIA in 2011. Announcing its Headline Key Performance Indicators (Headline KPIs) for the financial year ending Dec 31, 2011 (FY2011) on Monday, Dec 27, MAHB said these should not be construed as forecasts, projections or estimates or representation of future performance. "Headline KPIs are set based on MAHB's strategic plans and long term targets that were developed under MAHB's Five Year Business Direction (2010-2014) planning initiative ' with emphasis on the broader internal initiatives that are put in place for FY2011. "It is also based on the assumption that there will be no significant changes in the prevailing economic and political conditions, present legislation and/or government regulations, as well as with the expectation that the businesses of the MAHB group will continue to grow as expected," it said. On the outlook for the aviation industry, MAHB said following 2009 achievement, the passenger growth momentum at the MAHB operated airports continued with vigour in 2010. "We believe that 2010 will end with a double digit passenger and cargo growth as compared to 8.2% achieved for passengers in 2009. "The sustained 2010 growth indeed lays the foundation for further growth in 2011," it said. MAHB said that globally, there were fears of economic weakening especially in Europe and to a certain extent in the United States, as their governments were increasingly adopting austerity measures to rein in deficit spending and debt. Oil price is also seeing an uptrend, it added. However, MAHB said that airlines' profitability had picked up and was expected to improve further which would encourage more capacity, cheaper fares and more travel. Airports Council International (ACI) has estimated 2011 global passenger growth at 4.9% while the International Air Transport Association (IATA) has estimated both passenger and cargo tonne kilometers growth to be 6.1% globally, it said. MAHB said the growth was expected to be driven mainly by Asia Pacific Region, adding that its passenger growth target approximately 8% for its airports was achievable. "MAHB expects a challenging year ahead with major ongoing development work in the CONSTRUCTION [] of KLIA2 and Penang International Airport. "The Airline Recovery Programme (ARP) will continue to its third year and we foresee more airlines benefiting from the programme in 2011," it said.