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Malaysia Country Report 2014
Country Reports

Senai Airport takes stage as premier business aviation hub

After witnessing generations of aircraft come and go for nearly 40 years, Senai International Airport is finally ready to take-off on its own as Malaysia's premier business aviation hub.

Supported by:Discovery Reports
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Safuan Basir, deputy CEO

After witnessing generations of aircraft come and go for nearly 40 years, Senai International Airport is finally ready to take-off on its own as Malaysia's premier business aviation hub.

The gateway to Peninsular Malaysia, Senai International Airport is situated in Iskandar Malaysia Johor, one of the most strategic development zones in the country. It was run by Malaysia Airport Holdings as Sultan Ismail International Airport until about a decade ago, when it was privatised under Senai Airport Terminal Services Sdn Bhd (SATSSB). Since then, the airport has evolved nearly beyond recognition - and beyond its perceived potential.

"We are proud to mark our first decade with a series of enhancements and new infrastructure that position us not only as a truly international airport, but also as a premier destination for aviation services," says Safuan Basir, SATSSB deputy CEO.

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Over the years, SATSSB has invested more than US$122.56 million in infrastructure and facilities, among other value-added features. Recognised as the Best Emerging Airport in Asia by the Asian Freight & Supply Chain Awards 2011, the airport boasts an expanded runway. Previously limited to aircraft no larger than a Boeing 737, it can now accommodate bigger planes such as the Boeing 747 and 777, and Airbus A380.

Complementing the new runway are enhanced taxiways and aerodrome facilities; an upgraded passenger terminal building that supports 3.5 million passengers annually; and a new cargo complex that can handle as much as 80,000 tonnes of cargo volume annually.

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The airport's biggest innovation, however, is the Senai Airport Aviation Park, which is aimed at putting not only Johor but the entire country on the global aviation map.

The park, which began construction last year, is SATSSB's response to the rising demand for maintenance, repair and operations (MRO) services, particularly in Asia. Driven by booming economies such as China and Malaysia, the MRO market in Asia is forecast to rival that of the United States and Europe within the next 10 years.

"Asia, especially China, is the centre for growth - from passengers to aircraft movement to wealth and business travels," Safuan says.

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"The more aircraft we have flying in the sky, the bigger the need is for sufficient land and capable hands to service them."

Valued at about US$459.17 million, the development of the Senai Airport Aviation Park is also projected to complement Singapore's increasingly crowded Changi Airport under the "twin airport" concept proposed by Iskandar Malaysia.

"We will not compete with Singapore's Changi Airport or Malaysia's own Kuala Lumpur International Airport - which both excel in commercial aviation," Safuan says. "Senai International Airport and the upcoming Aviation Park aim to complement them, instead, as the two increasingly crowded airports face the challenge of running out of hangar space."

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Apart from the aviation park, another project that SATSSB is looking forward to unveil is Senai Airport City - an integrated free zone and mixed-industries development right next to the airport. Spanning more than 1,100 hectares, the airport city is envisioned to welcome investors with ready-built factories, offices, laboratories and other world-class facilities.

United States-based confectionery giant Hershey's is among the airport city's earliest tenants, having invested more than US$250 million in a production facility at the Senai Free Trade Zone. The factory will be one of the biggest manufacturing plants for Hershey's worldwide, and is expected to boost local employment and generate as much as US$300 million within its first three years.

"With an integrated work-live-develop-meet-play environment in mind, Senai Airport City is designed to be the best of its kind to house the best of the world," Safuan says. "We are thrilled to grow with more iconic and catalytic partners, such as Hershey's, which bring foreign direct investment and added value to the airport, the country and its people."

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Senai Airport Terminal Services
www.senaiairport.com
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