In yet another attempt to boost business at Kuala Lumpur International Airport, the government has unveiled a new RM10 million ringgit incentive scheme for airlines.

New carriers flying into the four-year-old KLIA will be paid RM1 for every ringgit spent on promotional activities such as advertising in Malaysia, said Transport Minister Dr Ling Liong Sik.

"Each airline is entitled to claim up to RM500,000 and that has to be done within a period of three years from the day they commence flights to KLIA," Ling was quoted as saying by today's The Star .

The incentive would be in place for the next five years and was a part of a campaign to turn KLIA into a regional hub and promote tourism, he added.

The scheme was in addition to a RM10 million marketing campaign by the airport operator to promote KLIA this year, officials said.

The under-utilised RM9 billion KLIA, located south of Kuala Lumpur, handled only 14.6 million passengers last year, well below its 25 million capacity.

Hit by withdrawal

The government has waived parking and landing fees for the next five years for new flights launched by carriers to KLIA as it seeks to compete with neighbouring Singapore.

Since its launch in 1998, the KLIA has been hit by the withdrawal of several top airlines, including British Airways, Qantas and Lufthansa.

The three airlines earlier this month said they had rejected strong overtures to relocate their regional hubs in Malaysia.