The new operator of Senai airport in Johor said it expects passenger numbers to grow by 50 percent to 1.5 million by June next year.

Senai Airport Terminal Services (Sats), the country's only independent airport operator, said the anticipated increase was due to plans to sharply increase airport usage through its new partnership with budget airline AirAsia and national carrier Malaysia Airlines.

"We see the initial jump to 1.5 million passengers by mid-next year as a good beginning for Senai Airport. For starters, we were able to clinch a deal for AirAsia to open up a second hub here and it shows Johor's potential to be an air logistics hub for both passengers and cargo," Sats director Mohamad Sidik Shaik Osman said in a statement.

AirAsia commenced direct flights last month from Kuala Lumpur to Senai and planned to later expand to cover other parts of Malaysia. This enabled Singaporeans to fly to the Malaysian capital for less than RM20.

Johor is just across a short causeway from Singapore's northern border.

Cargo hub

The statement said Sats planned to expand its parking area by three-fold to 1,200 bays to cope with traffic growth.

Sats, controlled by low-profile tycoon Syed Mokhtar Albukhary, acquired the airport last month for RM80 million from Malaysia Airports Holdings Bhd.

Under a one-billion-ringgit expansion program, it aims to develop Senai into Asia's air and cargo hub to complement the nearby Port of Tanjung Pelepas, which the businessman also controls.

Singapore, which has lost two big clients, Danish liner Maersk and Taiwan's Evergreen, to PTP, is watching closely developments in Johor and said last month it could withstand rising competition from Malaysia. - AFP