'KLIA East @ Labu’

[M. Sofian H. 0]

for me, depends on to AK to continue the project (dah gatal sangat)

don't forget to pay hutang with MAHB... DUIT RAKYAT!!!!...

HARAM MAKAN DUIT RAKYAT BUTA-BUTA

[T Azahan 1]

Mr Wong of the STAR hopes that the public or those who not in favor of the new airport to look at a bigger picture.

 

In my humble opinion, we are looking at a much bigger picture than him!

[kevin garnett 0]

Mr Wong of the STAR hopes that the public or those who not in favor of the new airport to look at a bigger picture.

 

In my humble opinion, we are looking at a much bigger picture than him!

 

He's correct. He's looking at the bigger pocket actually

[Phil M. 0]

If they really go ahead with this project is max sial selfish !These people can only think their pockets not the malaysia long term interest!!Where in the world?would they built a new airport 7 km from each other better still the present LCCt is 20 km from MTB???I think this what happens when u let politicians make decisions for us what next??Air asia move to labu then mas move to the present lcct then turned the mtb into a cargo terminal??At the rate they going anything is possible!!!Ultimately if your the bank loaning these clowns the money would u ??

[Sri Ramani K. 0]

"Clowns" get the nod.. :angry:

 

New low-cost carrier terminal project gets government nod

Bernama

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KUALA LUMPUR, Mon.:

 

Sime Darby Bhd has obtained government approval to develop a private low-cost carrier terminal (LCCT) project in Negri Sembilan.

In a statement to Bursa Malaysia today, Sime said the project was an integral part of the development plan for its Negri Sembilan Vision City (NSVC).

 

Sime said the NSVC was part of its Central Vision Valley property development project spanning Selangor and Negri Sembilan.

 

On Dec 23, 2008 Sime announced that it and AirAsia Bhd had jointly expressed an interest to the government to develop and operate the LCCT project on its land in Negri Sembilan.

 

Sime said the project was in the initial planning phase as both parties were engaged in preliminary discussions with state and federal authorities.

 

http://www.nst.com.my/Current_News/NST/Mon...icle/index_html

[Azri M. 0]

The war with MAHB is on!

 

 

Malaysia Airports says it can build low-cost terminal at KLIA

Bernama

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KUALA LUMPUR, Mon.:

Malaysia Airports Holdings Bhd (MAHB) has implied that it is more logical for the Low Cost Carrier Terminal (LCCT) to be at the Kuala Lumpur International Airport (KLIA).

 

In a statement today, the airport operator said it is now in a position to undertake the project with its own funds, thanks to the government’s approved restructuring plan.

 

The National Airport Master Plan study, after considering several locations, has identified a site for the permanent LCCT at KLIA, MAHB said.

 

“The new LCCT location was selected as it would provide excellent connectivity for both landside and airside transfers for passengers as well as baggage,” it said.

 

The study, which was recently completed, took into account the development of low fare travel in Malaysia, it added.

With the support of the Transport Ministry and Finance Ministry, MAHB initiated the development of the study in July 2007.

 

“This study is to set the direction for the future development of airports and aviation infrastructure in the country,” it said.

 

MAHB said that besides its involvement, the formulation of the National Airport Master Plan involved all relevant government agencies, Malaysia Airlines, AirAsia as well as representatives of foreign airlines.

 

“This master plan can be used as a basis for the orderly construction and development of all airports, including permanent LCCTs in Malaysia,” it said.

 

Based on the study, the existing Express Rail Link (ERL) will be extended for an additional 1.5 kilometres to connect the new LCCT to the existing Main Terminal.

 

The LCCT will be built via a multi-modular design, with each module being able to handle 15 million passengers, MAHB said.

 

The first phase of the permanent LCCT’s development will encompass two modules and a parking apron capable of accommodating at least 60 aircraft of various sizes and configurations, it said.

 

According to MAHB, the design of the airport terminal will focus on passenger comfort as well as operational efficiency for the low-cost carriers.

 

“The new terminal will be seamlessly integrated into KLIA’s current infrastructure via ERL immediately and via AeroTrain when the second satellite building is constructed,” it said.

 

MAHB said pending government’s approval, the first phase of this project could be ready by the end of 2011 and could be built at reasonable cost due to the availability of existing infrastructure.

 

“When the need arises, in line with KLIA’s master plan, a third runway can be built parallel to the second runway as aircraft movements and passenger traffic increases,” it said.

 

“This would offer efficient and quick turnaround for low-cost carriers as there would then be two runways that would be of equal distance from the new permanent LCCT and its parking apron,” it added.

 

On undertaking the project with its own funds, MAHB said self-funding from its own cash reserves was not new to the company.

 

“Over the last 15 years, MAHB has spent over RM1 billion from its own cash reserves for the building and upgrading of airports such as KLIA for A380 readiness, development of apron and a cargo complex in Penang, and the development of new terminal buildings in Alor Star, Langkawi and Kota Baru just to name a few,” it said.

 

MAHB said as had been done in the past, it continued to cross-subsidise several loss-making domestic airports and rural services airports.

 

“This proposal for the new LCCT to be completed in three years’ time will provide excellent connectivity with construction at reasonable cost and can be self-funded by MAHB,” it said.

 

So the proposed MAHB LCCT will be in between 2nd and the new 3rd runway. Interesting. Now we can sorta estimate where the new LCCT will be.

Edited January 5, 2009 by Azri M.

[jani 0]

good news, I guess TF's plan to push MAHB has worked.

[Mushrif A 3]

The war with MAHB is on!

 

 

 

 

So the proposed MAHB LCCT will be in between 2nd and the new 3rd runway. Interesting. Now we can sorta estimate where the new LCCT will be.

 

It seems to be at the swampy area where the weather station is. Note the future link to the second satellite building and the 1.5km only link from where ERL currently ends.

 

[KK Lee 5]

 

Has anyone experience or visit any award winning international airport where pax are waiting outside in the foyer?

 

From the pax experience and treatment by MAHB at LCCT, it is more appropriate and better for another company to operate the new LCCT.

 

 

[Naim 6]

New LCC terminal to be built with private funds

Frequent Flyer | Jan 5, 09 6:01pm

 

I refer to the letter Is there really a need for another LCCT?

 

Being a frequent flyer with AirAsia, I'm sure the government's decision to allow the private construction of a new LCCT at Labu was given very in-depth consideration before approval was granted by the cabinet.

 

All aspects of convenience and connectivity for passengers were obviously utmost on the government's mind, as was the need to accommodate AirAsia's tremendous growth.

 

The writer mentioned the potential of bad connectivity (travellers having to take a bus or ERL from one terminal to another) once the new LCCT is up and running. What's the difference now? I don't recall walking to the KLIA main terminal to get a connecting flight. I still need to get a bus, taxi or ERL to get there.

 

So, what's the fuss all about? I understand that a link road will be built between the main terminal and the new LCCT, while the KTM Komuter service will be extended to the new terminal. Also the distance from KL city centre to Labu is only about 50 km compared to 78 km to KLIA.

 

Besides, given AirAsia's impressive frequency of flights and connectivity of routes, I suspect most of its passengers will be flying the budget airline all the way anyway, rather than switching from AirAsia to a full-service carrier at KLIA's main terminal.

 

I read in a local daily that the present LCCT was only meant as a temporary terminal, and never meant for long-term use. It is constantly overcrowded and the facilities are poor. Even plans to expand it to accommodate 15 million passengers a year would not help AirAsia much, given that the airline expects to carry 30 million passengers a year by 2013.

 

As a frequent user of AirAsia and seeing how full its planes are, I can personally attest to how fast the airline is growing. It's ridiculous that there are people trying to blame AirAsia for wanting a terminal that fits its needs – and the needs of its growing number of passengers. Many people blame AirAsia for the conditions at the LCCT, presumably unaware that the airport is operated not by AirAsia but by Malaysia Airports Holdings Bhd.

 

I don't think MAHB is helping much to ease the problem. To build a new LCCT by 2014? I believe that will be too late. The Malaysian economy needs all the help it can get at this time. AirAsia contributes enormously to our tourism industry and anything that enables the airline to continue helping our country should be praised, not criticised.

 

As for the argument that AirAsia use the KLIA Main Terminal, come on. AirAsia operates on a low cost carrier (LCC) model and a lavish airport terminal like KLIA would not be suitable for its operations. The extra features and fittings at the KLIA main terminal would mean extra costs for the LCC and defeat AirAsia's whole purpose and its business model.

 

The writer mentioned about an 'All-In-One' model with regards to the charges to be imposed on full-service carriers and LCCs, which is achievable with a good business plan. Looking at the KLIA main terminal and the LCCT, one could get a clear indication of which has the so-called 'good business plan'. The writer’s recommendation looks good on paper but would not fare too well in its implementation in the real world. .

 

AirAsia obviously did not come easily to its decision to want to relocate to a new LCCT that it can operate much more efficiently and at much lower costs. Perhaps there is some shortchanging somewhere, hence the airline decided to go away.

 

Lastly, let's keep in mind a very important fact: The new LCCT at Labu will be built and operated completely with private funds. Not a single sen in government subsidies has been sought, and none granted. Isn't this an example of a genuine win-win situation for all – the government, the private sector and, most important, Malaysian consumers?

 

http://www1.malaysiakini.com/letters/95838

 

[Ryan Soh 3]

LOL... I have always maintained that TF and gang were just joking about Labu and it was all a ploy to get MAHB up and running to get their wishes fulfilled. So now looks like it worked.

 

 

[Attan 0]

Well written, Naim

 

MAHB has missed a good opportunity to make money on AK's rapid expansion. If they had been far-sighted and worked with AK to speedily set up a suitable LCC terminal, there would have been no need to get Sime Darby into the picture.

 

Nevertheless, I still think the huge resources (whether public or private) needed to set up the new terminal and associated infrastructure in Labu would have been better spent elsewhere IF ONLY MAHB, AK and the Government had put their heads together to upgrade the existing facilities in a visionary, carefully planned and well executed manner. But maybe there are other reasons why this is not to be.

 

New LCC terminal to be built with private funds

Frequent Flyer | Jan 5, 09 6:01pm

 

I refer to the letter Is there really a need for another LCCT?

 

Being a frequent flyer with AirAsia, I'm sure the government's decision to allow the private construction of a new LCCT at Labu was given very in-depth consideration before approval was granted by the cabinet.

 

All aspects of convenience and connectivity for passengers were obviously utmost on the government's mind, as was the need to accommodate AirAsia's tremendous growth.

 

The writer mentioned the potential of bad connectivity (travellers having to take a bus or ERL from one terminal to another) once the new LCCT is up and running. What's the difference now? I don't recall walking to the KLIA main terminal to get a connecting flight. I still need to get a bus, taxi or ERL to get there.

 

So, what's the fuss all about? I understand that a link road will be built between the main terminal and the new LCCT, while the KTM Komuter service will be extended to the new terminal. Also the distance from KL city centre to Labu is only about 50 km compared to 78 km to KLIA.

 

Besides, given AirAsia's impressive frequency of flights and connectivity of routes, I suspect most of its passengers will be flying the budget airline all the way anyway, rather than switching from AirAsia to a full-service carrier at KLIA's main terminal.

 

I read in a local daily that the present LCCT was only meant as a temporary terminal, and never meant for long-term use. It is constantly overcrowded and the facilities are poor. Even plans to expand it to accommodate 15 million passengers a year would not help AirAsia much, given that the airline expects to carry 30 million passengers a year by 2013.

 

As a frequent user of AirAsia and seeing how full its planes are, I can personally attest to how fast the airline is growing. It's ridiculous that there are people trying to blame AirAsia for wanting a terminal that fits its needs – and the needs of its growing number of passengers. Many people blame AirAsia for the conditions at the LCCT, presumably unaware that the airport is operated not by AirAsia but by Malaysia Airports Holdings Bhd.

 

I don't think MAHB is helping much to ease the problem. To build a new LCCT by 2014? I believe that will be too late. The Malaysian economy needs all the help it can get at this time. AirAsia contributes enormously to our tourism industry and anything that enables the airline to continue helping our country should be praised, not criticised.

 

As for the argument that AirAsia use the KLIA Main Terminal, come on. AirAsia operates on a low cost carrier (LCC) model and a lavish airport terminal like KLIA would not be suitable for its operations. The extra features and fittings at the KLIA main terminal would mean extra costs for the LCC and defeat AirAsia's whole purpose and its business model.

 

The writer mentioned about an 'All-In-One' model with regards to the charges to be imposed on full-service carriers and LCCs, which is achievable with a good business plan. Looking at the KLIA main terminal and the LCCT, one could get a clear indication of which has the so-called 'good business plan'. The writer’s recommendation looks good on paper but would not fare too well in its implementation in the real world. .

 

AirAsia obviously did not come easily to its decision to want to relocate to a new LCCT that it can operate much more efficiently and at much lower costs. Perhaps there is some shortchanging somewhere, hence the airline decided to go away.

 

Lastly, let's keep in mind a very important fact: The new LCCT at Labu will be built and operated completely with private funds. Not a single sen in government subsidies has been sought, and none granted. Isn't this an example of a genuine win-win situation for all – the government, the private sector and, most important, Malaysian consumers?

 

http://www1.malaysiakini.com/letters/95838

Edited January 6, 2009 by Attan

[V Wong 0]

the malaysiakini letter smells fishy - as if ghost written by someone from Air Asia... maybe uncle TF

Edited January 6, 2009 by V Wong

[BC Tam 2]

The whole episode smells of something ......... (no, roses don't immediately come to mind ) right from the beginning

I have never ever seen all parties concerned, count in the gahmen, AK, MAHB, Sime Darby - all stressing in one accord that everything will be privately funded and no public money will be spent. Must be some paradigm shift in gahmen's PR approach

Edited January 6, 2009 by BC Tam

[Naim 6]

Well written, Naim

...

 

Ahem, bro, but I didn't 'write' the letter - filched it off the malaysiakini.com website. I'm just not patient enough to write that long, but then I'm also an AK FF, so to me as long as I keep getting those kind of great fares, I don't care if their planes take-off from Labu or from Banting!

[Victor A. 2]

just curious, isn't SIME DARBY a GLC where the immediate shareholders are..(well, try and guess who?) and the biggest shareholders are..(well, guess again?). to me it looks more like a PUBLICLY funded project rather than a PRIVATE funded project. anyway, its just my 2 cents....

[Mushrif A 3]

LOL... I have always maintained that TF and gang were just joking about Labu and it was all a ploy to get MAHB up and running to get their wishes fulfilled. So now looks like it worked.

 

 

That was the impression that I had too. All a ruse. A wayang kulit to get the other party - the incumbent MAHB - to bend over backwards and hurry up, and stop behaving and thinking like a government agency.

[V Wong 0]

Hotly debated topic by netizen but the gahmen seemed to be deaf. Below is a response, also from malaysiakini:

 

Decision for new LCCT completely off the mark

 

Frequent Flyer 2 | Jan 6, 09 4:02pm

 

There has been a ‘cabinet decision’ to approve a new Low Cost Carrier Terminal near Labu. Reportedly this terminal is to be built by Sime Darby and AirAsia, two entities which are not only struggling to run their own businesses but also know next to nothing about building, maintaining and operating airports.

 

In contrast, the current LCCT operator, which is 50km away from Labu, Malaysia Airports has been winning global Best Airport awards for years in running now and also manages to run a profitable and shareholder value building business despite government controls on the rates it can charge, which are among, if not, the cheapest in the world.

 

The decision to build a new LCCT at Labu is so wrong on so many counts that it bewilders one's mind as to how the government ministers arrive at such a decision in such haste. Is there no real concern and care for the nation at all? The involved stakeholders have made statements supporting the construction of this new LCCT which will cost RM1.6 billion. I will now outline why the new LCCT decision is completely off the mark.

 

1. The Negeri Sembilan MB said that the new LCCT will catalyse the development of the eastern part of the state – but there is no need for an expensive airport to catalyse development as Negeri Sembilan is so small that describing part of it as ‘eastern’ is laughable.

 

The current LCCT is only 50km from state capital of Seremban and perhaps equidistant to Labu as well. So the proposed new airport will be only 50km away from current airport. What logic is there here? Let us not forget history. Negeri Sembilan was once part of Selangor and carved out as a separate state due to local chieftains' constant warring.

 

This small geographical appendage called Negeri Sembilan does not need an airport. It already has two airports within 50km distance (LCCT and KLIA). Had the cabinet approved a RM1.6 billion upgrade of the tourist town Port Dickson, I would applaud the move but not another LCCT.

 

2. The MB mentioned that AirAsia had to move as it desperately requires a bigger LCCT, more state- of-th-art facilities and aerobridges – but this cannot be further from truth. AirAsia, does not want state of-the-art facilities.

 

It definitely does not want aerobridges. When Malaysia Airports recommended that AirAsia use the facilities at KLIA, which is voted every year by international bodies as being among the best in the world, AirAsia refused. AirAsia wanted a cheap and low-tech facility and that is why Malaysia Airports built the LCCT.

 

If now AirAsia suddenly wants all those facilities which are not available at the current LCCT, it is most welcome to use KLIA - not go build another airport.

 

3. The minister of transport said that there is no question of redundancy – but this is again highly debatable. AirAsia's refusal to use KLIA citing expense and slow plane turnaround forced Malaysia Airports to build the present LCCT.

 

That made KLIA quite redundant as at present, about 10 million passengers are being channeled through LCCT while KLIA is underutilised. We have a RM10 billion airport (KLIA) which has to ‘give away’ 10 million passengers to a new airport 20km away for nebulous reasons. Why nebulous?

 

Because KLIA charges are already about the cheapest in the entire world, even when compared to some of the African airports. KLIA's aerobridge charges are so cheap that when foreign airlines find out, they do a double take and ask whether the number quoted to them is in US$ or RM and when told it is in RM, they shake they heads in wonder as to how it can be that cheap.

 

AirAsia does not want to use KLIA and AirAsia did not want to use theaerobridges for two reasons. The first, is it believed, is that they caused slow plane turnaround times despite the fact that not using aerobridges inconveniences the passengers.

 

But MAS, which uses aerobridges, is able to turn a plane around in 25 minutes, similar to AirAsia. The second reason is that AirAsia does not want to pay for the aerobridge fee, which at RM65 per docking or only 50 sen per passenger for a typical Boeing 737 load.

 

So to save 50 sen, passengers have to brave the scorching sun and torrential rain to board AirAsia planes at LCCT instead of the comfort of the air-conditioned aerobridges at KLIA.

 

Remember the furor regarding handicapped passenger? That would have never been an issue had AirAsia chosen the aerobridges at KLIA instead of saving 50 sen per passenger.

 

4. AirAsia says it can give better deal with their own airport – this is highly questionable. If AirAsia thinks the current fees at the present LCCT, which was built at the cost of RM300 million, are too

 

high, how can it afford to give better deal at a completely new airport which costs RM1.6 billion to build?

 

What will happen when MAS succeeds in its aim to be 5-Star Value Airline? MAS will be using KLIA and the passenger flow will be shared, enabling neither airport to bring in reasonable returns.

 

5. AirAsia says Malaysia Airports (MAHB) is charging too much, MAHB is charging RM6 per passenger on a local flight, only one way, not two ways. This charge is mandated by the government, not MAHB. Can we digest the significance of this? You, as a passenger at the LCCT, will have to pay RM6 to use the airport.

 

That is about what you will pay for parking your car for two hours in the city or even less for a meal at McDonalds. For international passengers, MAHB is mandated by the government to charge RM25 per passenger, again one way only, not two ways.

 

In comparison, AirAsia pays RM50 to Singapore and RM75 to Bangkok airports. How can the LCCT charges be ‘too much’? KLIA is capable to handle up to 100 million passengers based on its development plan. We (the people of Malaysia) have already invested RM10 billion into this KLIA facility.

 

It is most sensible to use KLIA to the maximum and not throw more money around. Furthermore, we have again invested RM300 million in the present LCCT, which can handle up to 15 million passengers though it is only handling 10 million passengers right now.

 

We, in times of economic insecurity, cannot afford to waste existing facilities by allowing new ones to be built especially when the current facilities are the envy of people around of the world in terms of operating and financial performance.

 

KLIA and the present LCCT are jewels in the crown for Malaysia. They are owned by the people of Malaysia (via Khazanah Nasional) and operated to world class standards by Malaysians. To prove it, I welcome your readers to investigate what sort of awards MAHB has been winning over the years and how it has performed financially despite the constraints placed upon it. A quick read of its annual report would suffice.

 

On the other hand AirAsia is struggling to find financing for the airplanes it has ordered and recently announced a financial loss for the third quarter. Up to recently, it owed MAHB money. Sime Darby is also struggling to see the benefits of its synergies arising from its merger with Guthrie and Golden Hope.

 

Both companies should focus on their core business activities and make them better and not try to shore up their performances by coveting the crown jewels of the nation eg LCCT or the IJN).

 

The government must focus on catalysing economic growth in the right location and segments and not allow actions detrimental to citizens by allowing irrelevant development that damages past investments.

 

The justifications given for the new LCCT at Labu is all rhetoric and is relatively free of factual analysis. Please stop this nonsense.

 

 

 

 

Another take on this issue by Dr M, from malaysiakini. You can also access it from his blog ( http://www.chedet.cc/)

 

Dr M hears voices on 'another great Pak Lah idea'

 

Jan 6, 09 5:19pm

His detractors and critics have long argued that Dr Mahathir Mohamad has lost his marbles and the 82-year-old former prime minister today admitted that he 'hears voices'.

 

MCPXHowever, there is no cause for alarm as he assured: "No, I am not mad yet."

 

According to Mahathir, the voices he hears concerns the possible construction of a new airport in the country.

 

"We have three airports in and around the capital city, Kuala Lumpur. One in Sungai Besi, one in Subang and one in Sepang.

 

"Sepang was designed for 125 million passengers a year. It can have two terminals, four satellites and five runways," he said in a posting on his blog Che Det, entitled 'I hear voices'.

 

"Right now, the voices tell me we are handling only 25 million passengers. So we have capacity for another 100 million passengers more.

 

"But the voices said we will be building a new airport (the whole caboodle) at Labu in Negri Sembilan. It is to be exclusively for the low-cost airlines, eg AirAsia," he added.

 

'Enlighten' the public

 

Delving into the financial archives, Mahathir said the government forked out RM8 billion for the Kuala Lumpur International Airport in Sepang.

 

Even a small airport at today's prices, he pointed out, would be near to RM2 billion.

 

"The distance to Kuala Lumpur (from this airport) would be longer but of course it would be nearer to Seremban and other parts in Negri Sembilan.

 

"But that's all right as you don't pay any fare for the flights, only for the fares to the airport," he said.

 

With his trademark wit and sarcasm, Mahathir stressed that the building of the new airport would also help stimulate the nation's economy.

 

"Somebody can make quite a bit selling land. A government-linked company will get the job and contract it out to some lucky bloke. There will be a whole lot of other contracts to look forward to. It could even help with the coming recession," he said.

 

The government has last month approved plans by budget carrier AirAsia and conglomerate Sime Darby to build a new low-cost terminal, to be called "KLIA East @ Labu".

 

It will be built on a 2,800 hectare site (6,919 acres) under a private finance initiative, costing RM1.6 billion.

 

The project will also anchor Sime Darby's developments in nearby Labu, which include five new townships that will offer education, health, sports, high technology, recreation and entertainment services

 

Transport Minister Ong Tee Keat said that plans to expand an existing low-cost terminal were insufficient to handle the projected 30 million passengers by 2014.

 

Yet another great idea from Pak Lah

 

Nevertheless, Mahathir noted that these were 'only voices' and called on the government to 'enlighten' the public as to why Sepang or even Subang were not suitable.

 

"Has the Sepang Formula One circuit taken up all the land so we cannot build any more facilities in Sepang?

 

"What happens to the low-cost terminal at KLIA we have built only recently with such great speed? Do we close it down or do we transport the whole lot to Labu?" he asked.

 

As for the customary swipe at his handpicked successor Abdullah Ahmad Badawi, the former premier ended his posting by saying, "After thinking up about raising buffalos in Langkawi, Abdullah must be congratulated for yet another great idea."

 

 

Edited January 7, 2009 by V Wong

[jani 0]

The other day Dr Madey spoke of his disapproval of the IJN privatization, Sime Darby pulled out.. Hopefully the same happens with this plan.

[KK Lee 5]

KLIA and the present LCCT are jewels in the crown for Malaysia. They are owned by the people of Malaysia (via Khazanah Nasional) and operated to world class standards by Malaysians.

 

Wow! Guess we know what to expect from MAHB’s new LCCT

 

 

 

[Naim 6]

Malaysia: Airasia Expects New LCCT To Ready By 2011

Business 2009-01-08 14:55

 

SEPANG, MALAYSIA: Budget airline, AirAsia Bhd expects KLIA East, the proposed low cost carrier terminal in Labu, Negeri Sembilan, to be ready by March 2011, its chief executive officer Datuk SerI Tony Fernandes said Thursday (8 Jan).

 

However, he said that it was still premature to detail out owning and funding plans of the new airport that for now was estimated to cost RM1.6 billion.

 

He said it was imperative for AirAsia and AirAsia X to have the new facility by 2011 as the current LCCT was built for 10 million passengers and they were already crossing 11 million passengers.

 

Although the current expansion plans for the existing LCCT would increase capacity to 15 million passengers this year, no further expansion is possible due to its size constraints, he told reporters here.

 

Even with the extension, he said the group was still short of two parking bays.

 

"In two years' time, this airline will go bust if we do not have the facility," he said.

 

"The key thing is we cannot slow down our growth because we have bought planes," he said.

 

Fernandes said it was estimated that by 2013, the combined annual traffic flown by both AirAsia and AirAsiaX would be 60 million passengers per annum, more than SIA and Thai combined.

 

He added that by then, AirAsia would have 159 narrowbody aircraft and AirAsiaX would have 25 widebody aircraft, of which a combined total would be 184 aircrafts compared to Malaysia Airline's estimated fleet of 125 aircrafts.

 

"By 2013, only Japan Airlines would be bigger than us in terms of passengers. We could be the second biggest airline in Asia by 2030," he said. (Bernama)

 

http://www.mysinchew.com/node/19957

 

[BC Tam 2]

"In two years' time, this airline will go bust if we do not have the facility," he said.

[KK Lee 5]

AirAsia says KLIA not suitable for growing operations

By Lee Wei Lian

 

SEPANG, Jan 8 - Low-cost carrier AirAsia says it is in talks with several international and domestic investors to fund the construction of the proposed KLIA-East in Labu, Negri Sembilan, the new dedicated low-cost carrier airport it is jointly developing with Sime Darby Bhd with an estimated cost of RM1.6 billion.

 

The government has already given the nod for the project despite objections from Malaysia Airports Berhad (MAB), who also want to build a new permanent Low-Cost Carrier Terminal (LCCT) to replace the current facility which is bursting at the seams.

 

Making the case for KLIA-East today, AirAsia boss Datuk Tony Fernandes said there were concerns that KLIA's new LCCT would not be ready until 2014.

 

A new extension to the existing LCCT was supposed to have been completed on September 2007 but so far only the international arrival hall has been completed. Fernandes says that the earliest it can be finished is by Chinese New Year but the official completion date is in March.

 

"The delay from 2007 to 2009 has caused us numerous problems," says Fernandez.

 

MAB had promised several alternative sites for a new terminal and the most recent one is a terminal near the Bunga Raya VIP complex which was supposed to have been ready by 2014 which MAB now says can be ready by 2011.

 

Fernandez said, however, that the soil at the MAB's proposed site is too marshy.

 

He also emphasized that this is a privately funded initiative.

 

"Not one sen is going to come from the government," he says. He stressed that Air Asia is not going into the airport business but is willing to take the lead in arranging the financing and operating the airport.

 

"The worst case scenario is that Air Asia takes the lead in arranging the financing. The best case scenario is an investor owns the terminal assets and we just lease it from them. We have talked to many local and foreign investors who want to finance it."

 

He says there is no problem for MAB to have a stake in the new private terminal.

 

However, at this time, the terminal would serve only Air Asia planes and would not be open to competition. He is confident that he can reduce the cost to below RM1.6 billion and that the purpose built low cost terminal will allow him to reduce operational costs to up to 20 per cent.

 

The RM1.6bil is an estimate of the cost of structures and the runway but did not include the cost of the 3,000-acre plot of land where it would be constructed.

 

"Moving airports is not fun," he says. "We were forced to move from Subang to the KLIA main terminal and then to the LCCT. This new terminal is our initiative. If we fail, the consequences of failing will fall on us."

 

Fernandez later took the media for a tour of the Labu site, currently about 30 minutes away from the LCCT via winding country roads past plantations, cowboy towns, grazing cattle and sculptures of pumpkins. A dedicated highway from KLIA is being planned and discussions are undergoing for the ERL to be extended to the new terminal, now to be called KLIA East.

 

KLIA East proper is sited within an undulating Sime Darby owned oil palm plantation. From there, planes can be seen landing and taking off from KLIA in the distance.

 

The plans are for one terminal and one runway to be built at the site to serve thirty million passengers. If need be a second runway can be built to expand the capacity to 50 million. And after that? "I don't think we will exceed that number," says Fernandez.

 

But what if MAB goes ahead with its plans for terminal near the Bunga Raya complex? "It's all a game isn't it?" says Fernandez. "But since this is going ahead, I don't think they will proceed."

 

But does the need for Air Asia to move to Labu indicate a flaw in the KLIA master plan which was supposed to cater for 100 million passengers? "To be fair, nobody could have foreseen the rise of Air Asia which grew so quickly and with its unique requirements for lower costs," he replied.

 

The KLIA East project is an integral part of Sime Darby's development plan for its property development project spanning Selangor and Negeri Sembilan.

 

http://www.themalaysianinsider.com/index.p...ing-operations-

 

 

 

[Naim 6]

Jan 8, 2009

 

AirAsia to have own airport

AirAsia announces plans for own airport outside Malaysian capital

 

KUALA LUMPUR - BUDGET carrier AirAsia said on Thursday it will shift to its own US$460 million (S$681.4 million) airport outside Kuala Lumpur, and abandon its overcrowded terminal next to the main international airport.

 

The move has thrown into doubt the national airport operator's plans to build a new Low Cost Carrier Terminal next to Kuala Lumpur International Airport (KLIA), to replace the existing facility that opened in 2006.

 

'We believe in lowering our business costs, it is the key to our success,' AirAsia founder Tony Fernandes told a press conference.

 

'The new airport which will be known as KLIA East will provide more capacity for aircraft and passengers, and enable us to bring down fares,' he said, adding that costs could be lowered by 30 per cent.

 

Mr Fernandes rejected criticism that KLIA has more than enough capacity to handle AirAsia's growth plans, and that the sprawling city has no need for what would be its fourth airport.

 

'I think we know what we need, we are not silly,' he said. 'There is nothing here (at the old terminal) to add value to our passengers. Allow us to take our destiny in our own hands.' Mr Fernandes said the new airport would be exclusively for AirAsia, and designed to handle up to 30 million passengers annually. Construction could begin within six months with a completion date of March 2011.

 

The new airport would be linked by new train and road links, and be about 30 minutes' drive from the city centre - less than the journey to KLIA.

 

Malaysian conglomerate Sime Darby had said it has won government approval to begin the project, which is to be the centrepiece of its new development at Labu in Negri Sembilan state.

 

'We have a fantastic partner, it will enhance tourism. We will also have a theme park, it will be like Orlando airport where Disneyland is located,' Mr Fernandes said.

 

AirAsia has dramatically outgrown its rough-and-ready terminal adjoining KLIA, which has no rail links with the city or the main airport, and has become increasingly crowded and unpleasant for passengers.

 

The terminal was completed in just nine months, with a capacity for 10 million passengers and a provision for expansion to 15 million passengers.

 

The expansion of the current low-cost terminal is due to be completed by March, but by then AirAsia will already have exceeded its enlarged capacity with some 15.7 million passengers a year. -- AFP

 

http://www.straitstimes.com/print/Breaking...ory_323533.html

[Yusoff 1]

Wah wah wah... the small wound has become a skin cancer now!

 

And someone's head has blown up as big as the Doppler radar dome!