Airports Development Limited

Airports Development Limited (ADL) was set up as a limited liability company in 1977 under the Companies Act Chapter 46.03 of the Laws of Malawi.

The Mandate of ADL is to operate and manage the infrastructure, facilities and services of Kamuzu International Airport (KIA) and all other aerodromes elsewhere in the Republic of Malawi on a commercial basis and to generate revenue that would support continuous maintenance and expansion of the airports.

In order to efficiently execute its mandate, ADL undertook several reforms as part of the Malawi Public Sector Reforms Programme that was launched by His Excellency President Professor Arthur Peter Mutharika in February 2015. ADL is undertaking the following reforms:

Installation of Common Use Terminal Equipment (CUTE) at Kamuzu International Airport (KIA)
This is a system where airlines can physically share computers, check-in counters and boarding gates at set fees. The reform was fully installed at KIA to help bring about uniformity in passenger checking in by all airlines, reduce con-gestion, improve the safety of passengers and their luggage and enhance CUTE revenues.

Through the CUTE System, ADL’s revenue collection has increased over the years. During the 2015/16 Financial Year (FY), a total of MK 46,383,602.92 was collected; during the 2016/17 FY, revenue amounting MK 110, 213,484.59 was collected and during the 2017/18 FY, revenue amounting MK134, 633,092.89 was collected.

Expansion of ADL Mandate to manage and operate both the landside and airside of all key airports in Malawi
This reform was undertaken to capacitate ADL to manage both the Land and Air side of all airports in Malawi and not just the land side of a select few. The reform ensures reduced management costs since the same managers oversee operations of all airports but also provides room for enjoyment of economies of scale through bulk purchases.

Draft Articles, Memorandum of Association, Organogram, Mission, Vision, and Functions for new set up were completed including inspection tours of Chileka, Karonga, Mzuzu and Likoma Airports. ADL commenced revenue collection for aircraft parking and landing fees on 1st October 2016.

During the 2016/17 and 2017/18 Financial Years, total revenue amounting MK 2,197,764.37 and MK 2,598,597.22 respectively was collected from Landing and Parking fees. Also during the 2016/17 and 2017/18 Financial Years, total revenue amounting MK 1,785,157.83 and MK 3,143,401.96 respectively was collected through Passenger Fees.

Introduction of Airport Development and Baggage Fees
This reform aims at improving ADL revenue streams to support improvement of infrastructure and equipment in airports. A Board Paper on proposed fees was submitted and approved in June, 2016.

The implementation of this reform has resulted in ADL increasing its revenue from MK 27.5 million collected before the reform in 2014/15 to MK 72.7 million after the reform in 2015/16 thus realising an increase of MK 45.3 million.

Feedback: opcreforms@gmail.com