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Alan B.

'KLIA East @ Labu’

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Rejection of Labu LCCT is firm, says Najib

 

PHUKET, Feb 22 – The government is firm in its decision to reject the proposal by AirAsia Bhd and Sime Darby to build a RM1.6 billion low-cost carrier terminal (LCCT) Labu, Negeri Sembilan, Deputy Prime Minister Datuk Seri Najib Tun Razak said today.

 

He said the project could not be continued according to the original plan as Sime Darby would not contribute towards the RM800 million construction cost.

 

“They will only sell the land to the party that is building the infrastructures. If it’s Airport Malaysia (Malaysia Airports Holdings Bhd (MAHB), it means sell to Airports Malaysia ... they (Sime Darby) will not pay for the RM800 million infrastructure cost,” he told Malaysian journalists covering the Special Asean+3 Finance Ministers’ Meeting in this tourist resort here Sunday.

 

Najib, who is also Finance Minister said he had received confirmation in “black and white” from Sime Darby on the matter.

 

“If they (Sime Darby) do not contribute, there is no basis for the project to be considered,” he said. – Bernama

 

There you go :)

Funny how (quoted) construction cost now spiralled down to half already

Perhaps terminal building design has been modified to "canopy rental" ala PDRM @KT specifications :)

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There you go :)

Funny how (quoted) construction cost now spiralled down to half already

Perhaps terminal building design has been modified to "canopy rental" ala PDRM @KT specifications :)

 

 

Hmm I think construction cost still the same.... The construction cost is expected to be 50-50 between AirAsia and Sime Darby. So 800M for AK and 800M for Sime Darby.

 

so it's not that the construction cost spiralled down to half.

 

This is actually will save AK. I don't think with current economics climate AK can afford to get loan for another 1.6Bill. with A320 coming in... another 1.6Bill will blow AK's budget to pieces and it will downgrade AK's credit rating..

Furthermore it will take like maybe more than 50 year to repay the loan.

 

Yes A320 is new now. but in next 10years to 15 years or so... AK will definitely want to renew its fleet. With low credit rating AK won't get new loan for their fleet replacement. So AK will stuck with old A320 just like MH stuck with B734 now.

 

 

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This is actually will save AK. I don't think with current economics climate AK can afford to get loan for another 1.6Bill. with A320 coming in... another 1.6Bill will blow AK's budget to pieces and it will downgrade AK's credit rating..

Furthermore it will take like maybe more than 50 year to repay the loan.

 

Yes A320 is new now. but in next 10years to 15 years or so... AK will definitely want to renew its fleet. With low credit rating AK won't get new loan for their fleet replacement. So AK will stuck with old A320 just like MH stuck with B734 now.

 

From another thread http://www.malaysianwings.net/forum/index....showtopic=11627, AK just secured about USD600m of finance from Barclay Capital for 15 minibus.

 

Local banking system is filled with surplus cash. As long as AK can convince banks that Labu is a viable project and AK will give guarantee, believe it won’t be a problem for AK to secure bank loan, issue bond or have REIT to finance the project.

 

Although MH is a listed plc but is implicitly guaranteed by GOM, has a credit rating similar to GOM or at worst only one grade lower. MH won’t have trouble in raising fund from either domestic or foreign market for aircraft purchase even in this difficult time.

 

Curious to know, how you derive AK will has a low credit rating even in 10 to 15 years time? May be your unerring wisdom can tell us what stock to buy and hold for the next few years.

 

:drinks:

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Curious to know, how you derive AK will has a low credit rating even in 10 to 15 years time?

 

:drinks:

 

 

I said if

again IF AK were to take a loan of MYR1.6 Bill for the airport. plus may be much more to operate the airport. then another loan for purchasing A320.

 

Which hopefully AK will not. Point to be noted.. AK share price currently traded at below its IPO.

 

Thus I said the cancelation of Labu LCCT might actually saves AK.

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I said if

again IF AK were to take a loan of MYR1.6 Bill for the airport. plus may be much more to operate the airport. then another loan for purchasing A320.

 

Which hopefully AK will not. Point to be noted.. AK share price currently traded at below its IPO.

 

Thus I said the cancelation of Labu LCCT might actually saves AK.

 

Airport operation is a profitable business. One Asean capital airport, the investment was recovered in less than 3 years! This is a lot more profitable than airline business.

 

:drinks:

 

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Airport operation is a profitable business.

 

Not if AK restricted Labu to AK only planes as per the rumour.

For the record Senai is still struggling to stay in black.

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Fly or ride, or neither, taxpayers still pay ERL

By Shannon Teoh

 

KUALA LUMPUR, Feb 24 – Malaysians have been subsidising the Express Rail Link (ERL) service since last April, it was revealed in Parliament today

 

Transport Minister Datuk Seri Ong Tee Keat said that YTL Corporation’s ERL Sdn Bhd, the operator of the high-speed rail service from here to the Kuala Lumpur International Airport, had been indirectly subsidised since last April because the company is unable to cover costs due to poor sales.

 

Answering a question from PKR’s Azmin Ali, the minister said that under a concession agreement for the rail service, Malaysia Airports Holdings Berhad (MAHB), the operator of KLIA, is required to pay ERL a portion of service charges it levies on all passengers.

 

But since April 1 last year, the finance ministry has been reimbursing MAHB for the money it pays ERL.

Ong said this arrangement was a result of a restructuring exercise in MAHB under a “marginal cost support scheme.”

 

He did not, however, reveal how much has been paid indirectly to ERL under the scheme.

 

Ong told Parliament that ERL was not being given any allocation from airport taxes, but under the concession agreement, an allocation from passenger service charges levied by MAHB was due to ERL since 2002.

 

“For example, if RM51 is collected from an international flight, RM5 is allocated to ERL,” he said.

 

Later, he told reporters that the Finance Ministry has been reimbursing this amount to MAHB since April 2008 but insisted that “ERL gets no monetary support from the government.”

 

However, the fact that the government-linked company is reimbursed for whatever it pays ERL by the government, effectively makes it an indirect subsidy.

 

Ong justified the allocation to ERL by pointing out that there had been a massive capital outlay to operate the rail line but that ticket sales “cannot cover the cost of the outlay and maintenance.”

 

He added that the allocation was agreed upon based on projected traffic before the ERL had begun operations.

 

“With the inception of the low-cost carrier terminal two years ago, (ERL) takings have further deteriorated,” he said.

 

Ong also revealed that the government has collected RM1.86 billion in airport taxes since 2004.

 

In 2008, RM446.4 million was collected, with RM292 million from KLIA.

 

http://www.themalaysianinsider.com/index.p...-still-pay-erl-

 

 

 

 

 

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Not surprising if you compare the KLIA express and those second hand train used by the other companies. Plus it's linked to a under-achieved airport.

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The ERL is proof that charging high price will not necessarily means getting big profit. It is the opposite in fact.

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agreed. they should revise the price of the ERL to below RM50 for a return ticket.

 

Even the Heathrow express is 21pounds for a return journey. (Let's not forget its London, where everything costs much much more)

 

 

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"agreed. they should revise the price of the ERL to below RM50 for a return ticket.

 

Even the Heathrow express is 21pounds for a return journey. (Let's not forget its London, where everything costs much much more) ""

 

Well....come to Sydney. Round trip to international terminal from the central train station is AUD26. This is for 7km journey one way and it takes 20minutes for travel this distance. You would also have to put up with old packed smelly commuter train. So you can imagine taking a train to the airport during morning rush hours. Yup… not fun at all.

Not forgetting, there is no trolley allowed on the train platform, so you would have to carry your bag and walk some distance to and from the platform.

Compared to KLIA express, clean, specious and you pay MYR 35 for a 60 odd km journey and it only takes about 30 minutes.

 

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I think you should only compare the KLIA ERL with comparable dedicated airport rail service, like LHR Express, HKG express...not a commuter service, which happens to have a station at the airport.

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MAHB Q4 net profit down 46% on higher costs

Thursday February 26, 2009

http://biz.thestar.com.my/news/story.asp?s...iness%2F3350950

 

SUBANG: Malaysia Airports Holdings Bhd’s (MAHB) net profit dropped 46% to RM57.2mil for the fourth quarter ended Dec 31 compared with RM106mil in the previous corresponding period. Its revenue rose 1.5% to RM364.1mil from RM358.7mil a year ago.

 

Managing director Datuk Seri Bashir Ahmad Abdul Majid told a press conference the drop in net profit for the fourth quarter was due to higher utility costs as well as expenses incurred for the airport’s Route 2008 event last year.

 

“The performance of 2007 was higher due to a write-back in the provision for pension fund amounting to RM34mil,” he added. MAHB’s full year net profit rose 5.7% to RM305.2mil while revenue grew 9.7% to RM1.51bil.

 

On the company’s outlook this year, Bashir said it was looking at a slower growth of 2.8% in passenger traffic compared with 5% last year. “We might revise the growth due to the current tough environment but the growth for January was still positive at around 2%,” he added.

 

MAHB is aiming for its non-aeronautical revenue to surpass aeronautical revenue and contribute 65% to group revenue in two to three years, Bashir said. The non-aeronautical business, which includes rental advertising, rental space and retail business, contributed 48.99% to revenue last year. “The higher contribution will come from our continuous expansion in the retail business in the airports,” he said.

 

Bashir said two foreign airlines were interested to fly into Malaysia and that discussions were ongoing. About 50 airlines fly to Malaysia currently. He also revealed that MAHB was currently in talks with two airports from the Middle East and Africa for operations and management deals and that the deals might be finalised in a couple of months.

 

Meanwhile, Bashir said the company had allocated RM430mil for capital expenditure (capex) in the financial year 2009 (FY09) against RM250mil last year. “The capex is mainly for re-servicing runways, renovation works for the KL International Airport and the building cost for our new head office,” he said.

 

He added that MAHB would continue to embark on cost-cutting measures this year, noting that it managed to save about RM50mil through value management programme last year.

 

* * * * *

So, based on the information on MAHB's capex for FY09, the permanent LCCT is still not going to be constructed, but instead a new MAHB head office? Please tell me this is a joke.

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New MAHB head office is being constructed next to the KLIA mosque.

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Quite honestly, they DO need a new office as the old one at SZB T2 is quite unsightly.

 

However, the location whould be withing the available space at KLIA... This will be easier for staff to travel via the ERL... building it at the mosque is a little strange to me...

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Radzi if iam not mistaken i heard tabung haji is also building their new building there too which also includes a hotel!

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Radzi if iam not mistaken i heard tabung haji is also building their new building there too which also includes a hotel!

Heard about it since they first open KLIA. There is a vacant plot next to the mosque / police station which is very suitable for a Tabung Haji complex. Sadly nothing yet.

 

I'm really hoping TH will build ther KLIA complex soon. Then the pilgrims can check in / check out at the complex. No problem with current check-in procedure, but check-out is another story. The welcoming crowd is too crowding.

 

Sorry for being O/T.

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Ong: New LCCT to handle excess passenger load by 2011

 

 

THE passenger load at the KL International Airport will exceed 20 million by 2011 and the new Low-Cost Carrier Terminal (LCCT) will cater to this increasing capacity, said Transport Minister Datuk Seri Ong Tee Keat.

 

He said the design capacity for the new LCCT would be around 30 million but the entire project would consist of various phases, which would allow room for further development.

 

“This is crucial because by 2011, we anticipate the delivery of bigger aircraft, including the Airbus A380 by Malaysia Airlines,” he said, adding that the present LCCT would not be able to handle the growing passenger load.

 

Ong said the new LCCT would be ready by 2011 and the total cost was estimated at RM2bil.

 

More from http://thestar.com.my/news/story.asp?file=...;sec=minibudget

 

KL International Airport =LCCT? :pardon: :blink:

 

Completely new airport by AK for $1.6bn and new terminal, apron, taxiway by MAB for $2.0bn?!! :sorry:

 

:drinks:

 

 

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..... This is crucial because by 2011, we anticipate the delivery of bigger aircraft, including the Airbus A380 by Malaysia Airlines,” he said, adding that the present LCCT would not be able to handle the growing passenger load.

 

 

Completely new airport by AK for $1.6bn and new terminal, apron, taxiway by MAB for $2.0bn?!! :sorry:

Sir,

There is RM60bn already publicly announced and need to be "spent" ;)

And it's all for the good of you and me :)

 

btw, someone should remind OTK (I presume) MAS' to be delivered dugongs are not likely to make use of the to be built new LCCT - sort of irrelevant association there ! Unless the chap knows and let slip about some impending merger of AK and MH :p

Edited by BC Tam

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A new budget airline terminal by 2011

Mar 13, 09 1:16pm

 

A new RM2 billion budget airline terminal by ready by 2011, replacing the existing facility which is bursting at the seams, authorities said today.

 

 

The current low-cost carrier terminal which opened in 2006 with annual capacity for just 10 million passengers has become overcrowded, and lacks rail links with the city or the main airport which is 10 minutes away by car.

 

Malaysia Airports Holdings CEO Bashir Ahmad said the new facility will be located next to the Kuala Lumpur International Airport (KLIA) and will be able to handle 30 million passengers annually.

 

"The new low-cost terminal and a third runway will cost (up to) RM2 billion and we believe we can do it for less," he told a press conference, adding it would be completed by the third quarter of 2011.

 

He said that the express rail link which runs from Kuala Lumpur will be extended from KLIA to the new facility.

 

"The terminal will be more comfortable and there will be more space for passengers, immigration facilities for foreign workers, and even a car park for 6,000 vehicles," Bashir said.

 

"There is also space for expansion with another terminal for about 25 million passengers that could be built in the future."

Key Features of new LCCT:

 

- Estimated Cost: RM2 billion

 

- Completion Date: Third quarter 2011

 

- Size: 150,000 square meters (sqm)

 

- Capacity: 30 million passengers per annum (mppa) with capacity to expand to 45 mppa

 

- Comfort level: 15-20 sqm per passenger

 

- Multi storey car park with 6,000 parking bays

 

- Landside connection to KLIA main terminal building

 

- Aircraft parking apron with 70 bays

 

- New 4km 3rd runway

 

- Full parallel taxiways for runway 2 and runway 3 for quick turnaround

 

- Integrated transport hub for bus and taxis.

 

- Efficient layout of concession areas for retail and food and beverage outlets.

 

- Transfer areas to facilitate ease of connections

 

 

 

http://www.malaysiakini.com/news/100161

 

http://www.themalaysianinsider.com/index.p...art-by-mid-2009

 

Edited by KK Lee

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