PETALING JAYA: Malaysia Airlines (MAS) expects between RM60 million and RM100 million in annual revenue contribution from the move to make the Kota Kinabalu International Airport a second hub.

Its Managing Director and Chief Executive Officer, Tengku Datuk Azmil Zahruddin, said the geographical location of Kota Kinabalu made it a natural gateway to Borneo for traffic from China, Taiwan, North Asia, Indonesia and Autralia.

“There is room for growth. The airport is capable of handling 12 million passengers annually,” he told reporters announcing the airline’s second-quarter financial results here, Monday.

He said new routes will be added from the Kota Kinabalu International Airport in order to match capacity and demand for better economics.

Tengku Azmil said there will be more opportunities to increase yield as Malaysia Airlines started to receive new planes.

The airline has ordered up to 55 B737-800s and 25 A330-300s, with a total of three B737-800s to be received in 2010, comprising one each in October, November and December.

“We have also completed our discussions with Airbus and will be taking the six A380s. The first will be delivered in April 2012,” he said.

Tengku Azmil said MASkargo will also increase its fleet size from five to seven by September to cope with the surge in air freight demand.

The additional aircraft will allow MASkargo to offer new twice weekly services into New York via Amsterdam beginning the second week of September, he said.

To support MASkargo’s expansion plans, the first two A330-200F will be received in September and November 2011.

“Discussions are also underway to get the other two freighters delivered by the first half of 2012,” he said, adding that MASkargo had earlier placed a firm order for two A380-200F with option for another two.

As for Firefly, Tengku Azmil said: “We are ordering three additional ATRs. Currently, Firefly has seven ATRs. The three ATRs will be delivered by end of this year.”

On compensation for the delayed A380s, he said: “I would still prefer to get the aircraft rather than the compensation. The cost of delay is higher than the compensation.”

Malaysia Airlines has chosen four financial institutions to finance its 14 B737-800 aircraft which will be received from 2010 to 2011.

Tengku Azmil said the airline was currently in final discussion with few potential lenders for its A330 aircraft which will be delivered from 2011 to 2012.-Bernama

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