KLIA2 - New Mega Low Cost Carriers Terminal

[MERLINA 0]

congrats to our fellow members for contracted for some multi mil packages.hint hint

Both Husband n Wife departed for Haj on last Sunday.

[flee 5]

KLIA2 to cost more than RM2.5b?

 

KUALA LUMPUR: In the midst of the war of words between Transport Minister Datuk Seri Kong Cho Ha and AirAsia Bhd co-founder Tan Sri Tony Fernandes over the recent rise in airport charges, speculation is rife that the cost of KLIA2 has increased significantly from the initial estimates of between RM2 billion and RM2.5 billion.

 

Officials from Malaysia Airports Holdings Bhd (MAHB) declined to comment on the cost of the project, emphasing that even if there was an increase in expenditure in constructing the KLIA2, it would not affect the passengers nor the airlines.

 

“The only avenue for us to recoup the costs is from non-aeronautical revenue such as the retail segment,” said an official.

 

The official was commenting on speculation that the cost of completing the KLIA2, the new low-cost carrier terminal (LCCT), has escalated to more than RM4 billion and a costlier airport would mean MAHB has to increase its charges — including airline parking and landing fees and airport taxes — to recoup its investment.

 

The MAHB official said these concerns are unfounded because aeronautical charges are regulated.

 

“It’s already set in stone and subject to review every five years. It should not matter if the cost is above RM2.5 billion because MAHB will account for all costs. It is not the government or any airline’s concern as we can’t simply raise charges.

 

“Be mindful that aeronautical charges, particularly PSC (passenger service charge), are never based on the cost of building MAHB’s airports. Airports are never built on ROI (return on investment). It’s very unlike the models they have in the UK ... the ROI for MAHB on KLIA2 is only based on non-aeronautical income,” said the official.

 

It has been reported recently that the KLIA2 retail space, which takes up about 20% of the terminal area, will generate some RM1.2 billion in revenue.

 

The official also said MAHB is a well-run company and the stock is favoured by analysts for its performance and governance.

 

“It would only be sensible for it to be accountable for what it builds and ensure that it will recoup every cent it invests.”

 

The Transport Ministry was dragged into the ongoing dispute between AirAsia and MAHB after the airport operator obtained the green light to increase landing and parking charges and

airport tax from Nov 10 this year. This is the first increase in charges after 17 years.

 

The Transport Ministry approved a RM14 increase in airport tax to RM65 per passenger in most of its international airports while the LCCT in KLIA and the Terminal 2 in Kota Kinabalu saw charges go up by RM7 to RM32 per international passenger. Landing and parking charges will rise in three stages over three years — landing charges will be 9% while parking charges will be increased by 18% per year.

 

Fernandes, when contacted by The Edge Financial Daily, defended the need for low airport charges and raised questions on the efficiency of MAHB. He was also disappointed that the Transport Ministry has not given attention to AirAsia’s requests.

 

“It is the poor decision making of MAHB that made me disappointed. When they were building the KLIA2, they say it will cost RM1.2 billion, but now, the airport won’t only cost more but probably will not be ready by 2012 as initially planned,” he said.

 

Fernandes also responded to Kong’s statement in an interview with Sin Chew daily over the weekend that PSC at airports operated by MAHB were subsidised by the government.

 

He argued that the passengers at the LCCT were not subsidised by the government and that although MAHB had not raised charges for 17 years, the existing terminal to cater for low-cost travellers was new and did not exist for that long a period.

 

Kong had told the Chinese daily that the recent increase in airport charges was to lift the government’s burden of subsidising the airport operator to the tune of RM180 million per annum in PSC and it was mainly enjoyed by passengers going abroad.

 

It is understood that the subsidy was part of an operating agreement between the government and MAHB in 2009.

 

Fernandes pointed out that the cost of building the existing LCCT was RM300 million and that the airport operator was able to recover the costs within one year based on the previous airport charges.

 

He also argued that it is not fair for MAHB and the government to compare the cost of KLIA and LCCT to Singapore’s Changi Airport.

 

“Malaysians aren’t paid Singapore salaries. Our advantage is cost, so, let’s have volume instead of cost,” he said.

 

Another matter that Fernandes has touched on is the appointment of high-position Transport Ministry officials to the board of MAHB and claimed that it was unfair as the ministry was also the regulator of the aviation industry.

 

However, Kong refuted the claims made by Fernandes, stating that the appointment was before his tenure in the ministry.

 

Kong also said that the recent increase in airport charges was not made by the Transport Ministry but came about as a result of negotiations between the Finance Ministry and MAHB. He said the Transport Ministry was only responsible for implementing it.

 

Kong said the agreement with MAHB was to allow an increase as long as the charges remain competitive in the region.

 

He said as a Malaysian, he is proud of AirAsia’s success, but highlighted that the government has been supportive of the airline’s growth.

 

“Of course, I do not deny the airline also has merit, it is important that the government has never prevented the development of AirAsia,” he added.

 

 

This article appeared in The Edge Financial Daily, November 22, 2011.

[Mike P 0]

low cost or high cost?

[KK Lee 5]

KLIA2 to cost more than RM2.5b?

“It’s already set in stone and subject to review every five years. It should not matter if the cost is above RM2.5 billion because MAHB will account for all costs. It is not the government or any airline’s concern as we can’t simply raise charges.

 

Typical glc, when the time is good it is their responsibility; if time is bad, is rakyat.

[Kee Hooi Yen 0]

KUB shares jump on MAHB deal

 

KUB MALAYSIA Bhd's share price surged more than 12 per cent after the company won a contract from Malaysia Airports Holdings Bhd (MAHB).

 

KUB told Bursa Malaysia that it landed a RM268.79 million contract from MAHB for a runway job at the new low-cost terminal, KL International Airport 2 (KLIA2) in Sepang.

 

KUB shares surged to an intraday high of 64 sen a share, before ending the trading day 6.5 sen higher at 61.5 sen a share.

 

KUB's unit, KUB Builders, yesterday accepted the contract build a new 3.96km third runway, its parallel and connecting taxiways, and other associated works at KLIA2.

 

 

RM269M for 4km runway & parallel taxiway... 8km in total length --> RM33.6M/km

Say average runway & taxiway is 60m wide --> RM560/m2

 

Don't forget the earthwork is already done...

[flee 5]

RM269M for 4km runway & parallel taxiway... 8km in total length --> RM33.6M/km

Say average runway & taxiway is 60m wide --> RM560/m2

 

Don't forget the earthwork is already done...

Shouldn't the taxiway be slightly narrower than the runway?

 

Fernandes mocks Malaysia Airports over KLIA2

 

KUALA LUMPUR, Nov 23 — Main airports operator Malaysia Airports Holdings Berhad (MAHB) became a target of Tan Sri Tony Fernandes’ ire yesterday following reports that the new low cost carrier terminal near here may have blown its budget.

 

The AirAsia CEO said MAHB was “laughable” and that the reported comments of one of their officials were “a joke”.

 

The Edge Financial Daily reported yesterday that the cost of the new lost carrier terminal, dubbed KLIA2, is speculated to have increased significantly over its original estimate of RM2 to 2.5 billion.

 

The report also quoted MAHB officials as saying that additional cost would not immediately mean higher airport fees as these were regulated by the Transport Ministry and MAHB could recoup the costs from non-aeronautical revenues such as airport retail.

 

The official also said the airport charges are not based on the cost of building the airport and that the return on investment (ROI) for KLIA2 is based solely on non-aeronautical income.

 

Fernandes questioned the rationale behind MAHB’s comments and pointed out that MAHB recently raised its airport charges.

 

“They said that they won’t raise charges because of non-aeronautical revenue, then why have it raised it now,” the airline chief posted on the Twitter microblogging service. “It’s a joke and very sad.”

 

“They haven’t admitted the cost of the terminal (KLIA2) or delivery,” he added. “But to say that the cost of the terminal makes no difference to airlines and passengers is a joke.”

 

Requests for comment sent to MAHB did not elicit a response by the time of publication.

 

MAHB’s main shareholder Khazanah Nasional Berhad is also the biggest shareholder in flag carrier Malaysia Airlines, where Fernandes’ Tune Air has a 20.5 per cent stake.

 

The Transport Ministry recently gave the green light for MAHB to raise airport tax by RM14 at most of its international airports and by RM7 per international passenger at the existing low cost carrier terminal (LCCT) at KLIA.

 

Aircraft landing and parking charges will rise by nine and 18 per cent respectively over three years.

 

Fernandes and MAHB had battled over the lack of capacity at the current LCCT, and the AirAsia chief had mooted building a private terminal in nearby Labu, Negri Sembilan due to his frustrations with the airport operator.

 

MAHB, however, convinced the government to disallow the Labu proposal and to opt for KLIA2 instead.

 

When first announced in 2009, KLIA2 was to cost RM2 billion and be completed by the third quarter of 2011.

 

The new date for start of commercial operations has since been shifted to October 2012, but there is speculation that it would only be ready by 2013.

 

Source

[flee 5]

Many Have Wrong Picture Of MAHB, Says Its Chairman

By Sharifah Hunaini Syed Ismail

 

KUALA TERENGGANU, Nov 23 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) says it has been misunderstood by several parties to the point of having a completely wrong picture of the airport operator company.

 

Its Chairman, Tan Sri Dr Aris Othman, said the misunderstandings also involved the issue of sky bridge facility at the new low cost carrier terminal (KLIA2) with the airport being termed as not being friendly to the disabled or senior citizens.

 

As a services provider, MAHB did have the intention of providing sky bridges at the airport in line with the company's concept of safe and convenient service, he said.

 

"We were actually ready to put in the facility, but our main user of KLIA2, Air Asia, said they would not be using it.

 

"If they do not use what had been prepared, there would be no returns from that as nobody would be using it, while in terms of investments, the cost is not a small amount. For all the routes, it would amount to more than RM120 million," he told Bernama here Wednesday.

 

Dr Aris said this when asked to comment on statements by several parties requesting MAHB to be more considerate and build the sky bridges at the KLIA2 for the use of the disabled and senior citizens.

 

As a service provider, MAHB is also prepared to provide the bridge if Air Asia, which will be the main tenant of KLIA2, changes its mind and wants to use the sky bridge, Dr Aris said.

 

"If there is a demand, we would provide the service, but we would not be able to provide it if the people do not want to use it.

 

"If Air Asia agrees, we are ready (to build it). Even if they do not agree, truth is the foundation for building the sky bridge is already there," he said.

 

He also said airline companies in the country were lucky as they could say no to several things while in other countries, "if the airport says use (a facility) the airlines would have to use them."

 

He also called on parties that saw the importance of the sky bridges and requesting that they be built, send their feedback to the low cost airline company.

 

Malaysia Airports Holdings, known as one of the largest private sector companies in the world, manages 39 airports in Malaysia including the KL International Airport (KLIA).

 

It has also established its position in several other countries such as with the Delhi Airport and Hyderabad International Airport in India, as well as with the airports in Turkey and Maldives.

 

The company is also the leading airport operator company in Asia and the sixth in the world and is listed on the Main Market of Bursa Malaysia.

[Mohd Azizul Ramli 2]

Grave jurno error by the journalist - it's AEROBRIDGE not sky bridge. Skybridge is a fixed structure like the one that connects the Petronas Towers or the one that will be linking KLIA2 MTB with its Satellite.

[dean hizudy 0]

Many Have Wrong Picture Of MAHB, Says Its Chairman

 

 

 

 

 

 

He also said airline companies in the country were lucky as they could say no to several things while in other countries, "if the airport says use (a facility) the airlines would have to use them."

 

 

 

 

 

This is SO TRUE! only in malaysia....

[flee 5]

Well LCCTs are supposed to be low cost, that is why the Budget Terminal in Singapore and the T2 in BKI also do not feature aerobridges too. In KCH, they have an apron that also does not have them. At Tokyo Haneda, airlines can choose to use remote stands and have their pax bussed to the planes.

 

MAHB has decided to build a luxurious LCCT. Why?

[Ikman Ikreza 0]

Well LCCTs are supposed to be low cost, that is why the Budget Terminal in Singapore and the T2 in BKI also do not feature aerobridges too. In KCH, they have an apron that also does not have them. At Tokyo Haneda, airlines can choose to use remote stands and have their pax bussed to the planes.

 

MAHB has decided to build a luxurious LCCT. Why?

 

Is that aerobridges can consider as luxurious? For example even condo and flat both got lift because for peoples convenience and I think same for aerobridges at airport. Maybe luxurious can categories based on fee chargeable. I think if MAHB build to many Premium Lounge at new LCCT so we can consider as a luxurious.

Edited November 24, 2011 by Ikman Ikreza

[BC Tam 2]

Well LCCTs are supposed to be low cost, that is why the Budget Terminal in Singapore and the T2 in BKI also do not feature aerobridges too

Wasn't it you who first queried why AK uses the more 'luxurious' T2 at SIN instead of budget (read low cost) terminal ?!

 

At Tokyo Haneda, airlines can choose to use remote stands and have their pax bussed to the planes.

Do you know if the airlines are charged differently (between aerobridge and bussed transfer) ?

[Ikman Ikreza 0]

I was thinking why MAHB named our new LCCT as KLIA2 not LCCT2

[Mike P 0]

I was thinking why MAHB named our new LCCT as KLIA2 not LCCT2

 

Because the current LCCT is going to be converted to cargo.

 

Anyway, KLIA 2 seems very luxurious. Perhaps another temporary terminal for LCCT which if later there are more premium airlines coming in... says RedQ's operation coming in... KLIA 2 will be utilised and new LCCT will be built again. Oh yeah! <_>

[flee 5]

Is that aerobridges can consider as luxurious? For example even condo and flat both got lift because for peoples convenience and I think same for aerobridges at airport. Maybe luxurious can categories based on fee chargeable. I think if MAHB build to many Premium Lounge at new LCCT so we can consider as a luxurious.

Sorry if I did not make it clearer. What I am saying is that the current RM 2.5+b KLIA2 is already luxurious for an LCCT, despite the fact that it does not have aerobridges.

 

Wasn't it you who first queried why AK uses the more 'luxurious' T2 at SIN instead of budget (read low cost) terminal ?!

Don't think I did. In fact, I understood the reasons why the AirAsia group airlines used T2. This is to facilite easy transfers for pax coming in to SIN on other carriers. A sound business move to attract more pax traffic onto their services. I don't think people would be so attracted to flights from the budget terminal as it would be less convenient.

[Waiping 12]

The original plan for T@ at BKI was to be converted into cargo complex too from what I understand.

[alberttky 0]

Don't think I did. In fact, I understood the reasons why the AirAsia group airlines used T2. This is to facilite easy transfers for pax coming in to SIN on other carriers. A sound business move to attract more pax traffic onto their services. I don't think people would be so attracted to flights from the budget terminal as it would be less convenient.

 

AirAsia group airlines use T1 in SIN.

[BC Tam 2]

Don't think I did.

My apologies

[dean hizudy 0]

talking about BKI, MAHB once asked AK to move to BKI terminal 1 but they do not need to use the aerobridges right? because some gates at terminal 1 are dedicated for carriers which do not using aerobridges such as maswings. Still, AK refused to move to terminal 1.

[Mohd Azizul Ramli 2]

It's because even if AK don't use the aerobridge at BKI T1, MAHB will still impose the non LCCT airport taxes to AK's passengers. The airport taxes which is payable by the consumers is based on the terminal, not the facilities used at the terminal. The airline, in this instance AK, that will pay the necessary fees to MAHB for facilities it used at the terminal it chooses.

 

Hence the refusal to move to T1 so that:

1. Passengers do not have to pay excessive airport taxes (thus AK can maintain its low fares)

2. AK does not have to pay higher fees at T1 for facilities it had to use - office rental, check-in counters, aerobridge et al.

[Mike P 0]

AirAsia group airlines use T1 in SIN.

 

That's because SIN budget terminal is as small as BKI T2, just enough for TR and unable to accommodate other carriers anymore.

[flee 5]

KLIA2 cost overrun poser to be answered on Tuesday

 

PETALING JAYA: The billion dollar question as to whether the construction of KLIA2 has incurred significant cost overruns will be answered this Tuesday by Malaysia Airports Holdings Bhd, sources close to the matter told StarBizWeek.

 

MAHB issued a statement yesterday stating that it would conduct a media conference and preview of KLIA2.

 

“All will be revealed as to what has transpired,” said a source. The media will also be offered a “walkabout” at KLIA2 on Tuesday, according to the advisory note.

 

Some reports have suggested that the cost of building KLIA2 has escalated to RM4bil and that would mean a huge cost overrun for the airport operator in constructing Asia’s biggest low cost air terminal.

 

Recently, when an MAHB official was asked to comment on the recent reports suggesting the RM4bil cost overrun, he had said that “the only avenue for us to recoup the costs is from non-aeronautical revenue such as the retail segment.’’

 

This comment gave AirAsia boss Tan Sri Tony Fernandes enough ammunition to poke fun at the airport operator.

 

Fernandes has been the airport operator’s biggest critic in recent times. He had been unhappy about the raising of the passenger service charge by MAHB.

 

He had also questioned the need to have a third runway. (The third runway was not part of the initial plans but was added on later by MAHB at the request of airlines and to cater to both KLIA and KLIA2.)

 

Fernandes had also expressed his displeasure over the RM7 hike in passenger service charge (PSC) from RM25 to RM32 for the LCCT. (MAHB had not increased its PSC charges for the last nine years and Malaysia’s charges are one of the lowest in the region.)

 

Fernandes also had a “war of words” with Transport Minister Datuk Seri Kong Cho Ha over the PSC issue where AirAsia initially did not want to collect on behalf of MAHB. Since then, AirAsia has conceded, and has agreed to collect the PSC as part of their ticket pricing.

 

Hence industry observers say MAHB would do itself a favour by revealing the whole story about the cost it has been incurring in putting up KLIA2.

 

Sources said that a key aspect of Tuesday’s explanation by MAHB would involve the airport operator explaining how they had bumped up the size of KLIA2 from what was originally envisaged.

 

KLIA2 was initially conceptualised as a low cost terminal which would have an area of 150,000 sqm, but to accommodate regulatory requirements it will now be a much bigger airport with 255,000 sqm and that would mean the cost would also be higher.

 

“There was a need for a new design to be done and to also include the government’s security requirement for the full separation of arriving and departing international passengers and segregation of domestic and international passengers.

 

“If the terminal building is bigger, the apron also has to be bigger and the cost will surely rise from the original amount,’’ said the source.

 

The entire development will comprise a 3-storey main terminal building, a satellite building and domestic and international contact piers.

 

The superstructure’s initial cost was bandied at RM2bil for 150,000 sqm but could have swelled to RM2.8bil or over RM3bil because the plans had been changed and the airport is much bigger than originally planned.

 

It is meant for over 30 million passengers.

 

In support of MAHB have been calls by some quarters for the operator to go ahead with having features such as aerobridges which is something that low cost carriers may not want. “MAHB should not be subjected entirely to the demands of certain airlines,” said an industry observer, adding that it would defeat the purpose of having an ultra modern superstructure without basic facilities like aerobridges.

 

Incidently, RAM Ratings reaffirmed the respective long- and short-term ratings of AAA and P1 for Malaysia Airports Capital Berhad (MACB) RM3.10bil Islamic Medium-Term Notes Programme (2010/2025) and RM1.00bil Islamic Commercial Paper Programme (2010/2017); both facilities have a combined limit of RM3.10 billion in nominal value and are collectively referred to as “the Sukuk”. The long-term rating has a stable outlook.

 

It said MACB was a special-purpose vehicle set up by MAHB to undertake the issuance of the Sukuk for the latter. MAHB is the exclusive 25-year concession holder that operates, manages and maintains KLIA and 39 other airports in the country.

 

Source

[alberttky 0]

 

“There was a need for a new design to be done and to also include the government’s security requirement for the full separation of arriving and departing international passengers and segregation of domestic and international passengers.

 

 

The rule doesn't apply to PEN and KCH??

[Mike P 0]

The rule doesn't apply to PEN and KCH??

 

There's one good thing for passengers departing INT flights from KCH. Since the screening area doesn't separate passengers travelling outside Sarawak & INT, so passengers are allowed to carry liquid items on board.

[alberttky 0]

There's one good thing for passengers departing INT flights from KCH. Since the screening area doesn't separate passengers travelling outside Sarawak & INT, so passengers are allowed to carry liquid items on board.

 

As with anything with Malaysian aviation... consistently inconsistent.