Malaysia plans to double Kuala Lumpur cargo traffic via an 'aerotropolis', while MAS restructures

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Interesting news out of Malaysia. First, the struggling national carrier has set up Malaysia Aviation Group for its new corporate structure. It will house four separate business units: air transport; ground services; aircraft leasing; and talent and development. Within air transport will be the MAB Kargo division, which is to apply for its own AOC and operate as a separate company from 2017.

But it is not just the national carrier getting a new look. The country announced this morning it would transform the empty land around Kuala Lumpur International Airport into an “aerotropolis” for air cargo, logistics and aviation services. The hub is forecast to contribute RM30bn ($7.3bn) to the country’s economic growth over the next 15 years. Although officials said the airport was not trying to compete with Changi, they did note that the Singapore airport has a land constraint – and they announced that in the next five years they want to catch up with cargo volumes that go through Changi, which handles 1.8m tonnes, compared with KLIA’s current 726,000 tonnes.