Tuesday, June 18th, 2019

 

Germany’s Siemens says to cut 2,700 jobs worldwide

FRANKFURT, June 18 — Industrial conglomerate Siemens said today it would slash 2,700 jobs worldwide at its gas and power unit, including 1,400 in its home country Germany, “over several years”. The division — set for a stock market flotation…


US Fed meet opens as markets eye shift in course

WASHINGTON, June 18 — Under intense scrutiny from the White House, the US central bank opened its two-day policy meeting today to decide the course of interest rates. The Federal Reserve’s policy panel — the Federal Open Market Committee —…


IAG signals intent to buy 200 Boeing 737 MAX aircraft

PARIS, June 18 — US aircraft giant Boeing and British Airways owner International Airlines Group have signed a letter of intent for delivery of 200 planes of the 737 MAX type, the companies said today. Boeing’s MAX aircraft have been grounded…


Wall St climbs on trade optimism, dovish Fed bets

NEW YORK, June 18 — US stocks rallied today, with the S&P 500 closing in on record levels, as President Donald Trump’s comments on the United States and China restarting trade talks added to optimism over the prospect of a more accommodative…


Trump says US, Chinese teams to restart trade talks ahead of G20

WASHINGTON, June 18 — President Donald Trump said today he had spoken to Chinese President Xi Jinping and that the two leaders’ teams would restart trade talks after a long lull in order to prepare for a meeting at the G20 summit later this…


MAHB proposes transfer fee, revised passenger service charges

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has proposed a passenger service charge (PSC) of between RM35 and RM60 for international flights out of Malaysia, depending on the airport of departure.

Currently, the PSC for flights to Asean destinations is RM35 and beyond RM73, while the domestic PSC is RM11. The current rates are the same for flights departing from all Malaysian airports.

MAHB proposed to increase the PSC for domestic destinations to RM14, from RM11 currently.

In addition, it proposed to introduce a transfer PSC of RM3 and RM17 for domestic and international flights respectively.

The transfer PSC is for all passengers on transit and transfer for up to 24 hours. Transfer/transit passengers departing more than 24 hours after arrival at the airport are to be considered as originating passengers who will be required to pay the relevant PSC in full.

In its second consultation paper on aeronautical charges framework released yesterday, the Malaysian Aviation Commission (Mavcom) said the airport operator proposed to equalise the PSC for Asean and beyond Asean flights, combining all such flights into one international category.

The rates for international flights vary, depending on which Malaysian airport the passenger departs from. The proposed PSCs are RM60 for flights from Kuala Lumpur, RM59 from Penang and RM55 from Langkawi, Subang, Kota Kinabalu and Kuching.

For flights departing from Miri, Sibu and other airports, the PSC has been proposed to be RM35.

MAHB also submitted two other options for the proposed tariffs. For all three options, MAHB is proposing for total landing and parking regulated revenues to increase by 16% in 2020.

However, MAHB noted that the proposed PSC of RM35 to RM60 for international passengers and RM14 for domestic passengers is the only option that will result in tariffs for other airports being lower than Kuala Lumpur.

The other options include international PSCs of between RM35 and RM114 while maintaining the domestic PSC at RM11. Under this option, the PSC for international flights departing from Kuching would be a whopping RM114, higher than RM62 for flights departing from Kuala Lumpur.

Meanwhile, the third option includes keeping the three-tier PSCs of domestic, Asean and beyond Asean. Under this option, the PSC for Asean destinations would range from RM35 to RM56 while for destinations beyond Asean, the PSC would range from RM35 to RM80. The PSC for domestic flights would be increased to RM14.

The third option would result in the PSC for flights to Asean destinations departing from Penang set at RM56 and that for flights departing from Kota Kinabalu and Kuching at RM53, which are higher than RM38 for flights from Kuala Lumpur.

Mavcom will carry out a consultation process to provide stakeholders the opportunity to provide additional information before announcing its final decision in October. Stakeholders have four weeks up till July 18 to provide written responses.


MAHB proposes revised passenger service charges, puts transfer fee on radar

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has proposed a passenger service charge (PSC) of between RM35 and RM60 for international flights out of Malaysia, depending on the airport of departure.

Currently, the PSC for flights to Asean destinations is RM35 and beyond RM73, while the domestic PSC is RM11. The current rates are the same for flights departing from all Malaysian airports.

MAHB proposed to increase the PSC for domestic destinations to RM14, from RM11 currently.

In addition, it proposed to introduce a transfer PSC of RM3 and RM17 for domestic and international flights respectively.

The transfer PSC is for all passengers on transit and transfer for up to 24 hours. Transfer/transit passengers departing more than 24 hours after arrival at the airport are to be considered as originating passengers who will be required to pay the relevant PSC in full.

In its second consultation paper on aeronautical charges framework released yesterday, the Malaysian Aviation Commission (Mavcom) said the airport operator proposed to equalise the PSC for Asean and beyond Asean flights, combining all such flights into one international category.

The rates for international flights vary, depending on which Malaysian airport the passenger departs from. The proposed PSCs are RM60 for flights from Kuala Lumpur, RM59 from Penang and RM55 from Langkawi, Subang, Kota Kinabalu and Kuching.

For flights departing from Miri, Sibu and other airports, the PSC has been proposed to be RM35.

MAHB also submitted two other options for the proposed tariffs. For all three options, MAHB is proposing for total landing and parking regulated revenues to increase by 16% in 2020.

However, MAHB noted that the proposed PSC of RM35 to RM60 for international passengers and RM14 for domestic passengers is the only option that will result in tariffs for other airports being lower than Kuala Lumpur.

The other options include international PSCs of between RM35 and RM114 while maintaining the domestic PSC at RM11. Under this option, the PSC for international flights departing from Kuching would be a whopping RM114, higher than RM62 for flights departing from Kuala Lumpur.

Meanwhile, the third option includes keeping the three-tier PSCs of domestic, Asean and beyond Asean. Under this option, the PSC for Asean destinations would range from RM35 to RM56 while for destinations beyond Asean, the PSC would range from RM35 to RM80. The PSC for domestic flights would be increased to RM14.

The third option would result in the PSC for flights to Asean destinations departing from Penang set at RM56 and that for flights departing from Kota Kinabalu and Kuching at RM53, which are higher than RM38 for flights from Kuala Lumpur.

Mavcom will carry out a consultation process to provide stakeholders the opportunity to provide additional information before announcing its final decision in October. Stakeholders have four weeks up till July 18 to provide written responses.


Berjaya Sports Toto’s Q4 net profit doubles, 4.5 sen dividend proposed

PETALING JAYA: Berjaya Sports Toto Bhd’s (BToto) net profit for the fourth quarter ended April 30, 2019 doubled to RM70.18 million from RM35.18 million a year ago, attributed to higher profits attained by Sports Toto Malaysia Sdn Bhd.

The group registered a 7.7% increase in revenue to RM1.51 billion compared with RM1.40 billion in the previous year’s corresponding quarter, contributed by HR Owen Plc and Sports Toto.

The board has declared a fourth interim dividend of 4.5 sen per share for the quarter under review amounting to RM60.6 million, bringing the total dividend distribution to 16 sen or RM215.5 million for the financial period ending June 30, 2019.

For the 12-month period, BToto’s net profit grew 20.4% to RM276.42 million from RM229.66 million a year ago, while revenue increased 1.1% to RM5.72 billion from RM5.66 billion.

Looking ahead, the group anticipates that the performance of the number forecast operation business of Sports Toto will be satisfactory and is confident that the group will continue to maintain its market share in the number forecast operation business for the remaining two months of the financial period ending June 30, 2019.

BToto has changed its financial year-end from April 30 to June 30 so as to coincide with the new financial year-end of its holding company, Berjaya Land Bhd.

Thus, the next set of financial statements with the new financial year-end will be prepared for the period from May 1, 2018 to June 30, 2019 covering a period of 14 months. Thereafter, the financial year-end will end on June 30 for each subsequent year.


French 10-year government bond yield turns negative after Draghi remarks

PARIS, June 18 — The yield on the French government’s benchmark 10-year bond turned negative today for the first time after ECB chief Mario Draghi hinted at rate cuts. In mid-afternoon European bond trading, the issue yielded 0.01 per cent,…


US housing starts fall in May, but trend improving

WASHINGTON, June 18 — US homebuilding unexpectedly fell in May, but data for the prior two months was revised higher and building permits increased, suggesting that the housing market was drawing some support from a sharp decline in mortgage…