KLIA2 - New Mega Low Cost Carriers Terminal

[Ikman Ikreza 0]

Meeting on 1st June 2001??

 

I think typing error by AirAsia, it should be 1st June 2011 because date of head letter on 16th June 2011.

Edited December 6, 2011 by Ikman Ikreza

[flee 5]

TF tweet:

The BHS baggage letter was a fake argument. Not the letter. You need to see all the letters in sequence. Letter was not fake argument is misleading.

[flee 5]

AirAsia wants tenancy contract for KLIA2

 

SEPANG, Dec 6 — AirAsia says it wants a contract from Malaysia Airports Holdings Bhd (MAHB) for KLIA2 to ensure a minimum level of service from the airport operator and to avoid arbitrary airport charge hikes in future.

 

AirAsia commercial director Jasmine Lee said a service level agreement (SLA) would ensure MAHB was accountable for service quality at the new terminal and allow the airline to make more accurate cost projections.

 

She pointed out that there was no SLA in place at the current LCCT, just conditions of use.

 

“It’s like renting a house and the landlord is not giving you a tenancy agreement,” she told reporters at the airline’s office here.

 

“AirAsia is the victim here because we can be charged anything, anytime they want... We can’t hold them accountable for anything at all so we’re at their mercy.”

 

Source

[flee 5]

AirAsia says KLIA2 cost spike due to lack of input

 

SEPANG, Dec 6 — AirAsia today blamed Malaysia Airports Holdings Bhd (MAHB) for all the delays and additional costs to KLIA2, claiming they could be put down to the airport operator’s failure to set up a joint panel to decide on the new terminal’s ideal specifications.

 

“No joint action committee was set up to get all the right requirements from Day One,” AirAsia commercial director Jasmine Lee told reporters at the airline’s office here.

 

She pointed out this was despite then-Deputy Prime Minister Datuk Seri Najib Razak’s recommendation in November 2008 to set up the panel after meeting with both parties.

 

Without the joint committee, AirAsia had no direct control over the design and construction of the new low-cost carrier terminal as it could only make requests and suggestions to MAHB, Lee said.

 

She pointed out that AirAsia had never wanted the new terminal to be built to the west of the existing KLIA as the soil there was too soft to support a runway and would require the construction of an additional runway.

 

“It’s nothing to do with aerobridges or no aerobridges or the baggage handling system. The core problem is with the site itself,” she stressed.

 

AirAsia was responding to MAHB’s claims that the higher cost of KLIA2 was due to requests from the carrier for additional capacity.

 

The estimated cost of the project has nearly doubled to RM3.9 billion from RM2 billion following the airport operator’s decision to boost passenger per annum (PPA) capacity to 45 million from 30 million previously.

 

MAHB had also said AirAsia’s decision in June to switch from a semi-automated baggage handling system (BHS) to one that was fully automated had pushed back the terminal’s completion date by six months.

 

KLIA2 is now expected to be completed only in April 2013.

 

AirAsia, MAHB’s biggest customer, has denied asking for a larger terminal and more powerful baggage system in line with the airline’s projections that 45.3 million PPA would be using KLIA2 by 2020.

 

Lee today reiterated that the decision to go with a fully-automated BHS was made unilaterally by MAHB without consulting AirAsia.

 

MAHB went ahead with the budget carrier’s original request in June this year for a fully-automated BHS despite AirAsia settling for a modified semi-automated system subsequent to that, she said.

 

MAHB said its board of directors made the decision on July 4 to proceed with a fully-automated BHS on concerns that AirAsia would change its mind again in future, when it would be too difficult to accommodate such changes.

 

The public finger-pointing between the two parties began when AirAsia boss Tan Sri Tony Fernandes rubbished MAHB’s justifications for the increased cost of KLIA2 on micro-blogging site Twitter on November 29.

 

He said increasing the terminal capacity to 45 million PPA from 30 million made little sense as that would make it larger than “the whole of Singapore’s Changi Airport”.

 

But MAHB shot back with a rebuttal yesterday, pointing out that AirAsia had been the one to estimate that passenger traffic at the new terminal would reach 28.7 million by 2015, 45.3 million by 2020 and 60.3 million by 2025.

 

Source

[JingKai Seah 0]

Latest TF Tweet:

http://lockerz.com/s/162471726 Walking round the airport. People all sitting on the floor. No space for seats. And they are all paying 7 ringgit more. 33 ringgit for passenger service charges.

[Waiping 12]

I thought sitting on the floor, maybe sleeping on it is part and parcel of traveling budget style?

[flee 5]

I thought sitting on the floor, maybe sleeping on it is part and parcel of traveling budget style?

Maybe at RM 25 Airport Tax it is. But TF expects pax to have chairs to sit on at RM 32 Airport Tax.

[Cheng Long 0]

TF likes to exaggerate.. Wheregot everyone sitting on floor.. Didn't see that also each time I was at LCCT.. The most maybe a few..

[Ikman Ikreza 0]

TF likes to exaggerate.. Wheregot everyone sitting on floor.. Didn't see that also each time I was at LCCT.. The most maybe a few..

 

Yup, just a few we can see and more of them sitting on the floor because of sometimes AirAsia flight delayed.

Edited December 6, 2011 by Ikman Ikreza

[flee 5]

MAHB says door to AirAsia SLA open

 

KUALA LUMPUR, Dec 6 — Malaysia Airports (MAHB) says it is willing to give AirAsia a service level agreement (SLA) for KLIA2 even though the conditions of use (CoU) agreement currently in force is common practice in the industry.

 

“The CoU provides guidance on the use of airport facilities particularly in regard to the safe and secure use of the airport, as well as a schedule of applicable airport charges. This is very much in line with the common industry practice,” it said in a statement today.

 

“In regard to AirAsia’s request for a specific service level agreement and its claim of having SLAs at airports abroad, we have indicated our willingness to have an SLA and are awaiting AirAsia’s proposal on the SLA for further study and consideration.”

 

AirAsia said today it wants an SLA from MAHB for KLIA2 to guarantee a minimum level of service from the airport operator and to avoid arbitrary airport charge hikes in future.

 

AirAsia commercial director Jasmine Lee likened the present CoU arrangement to renting a house without first securing a tenancy agreement from the landlord.

 

“AirAsia is the victim here because we can be charged anything, anytime they want ... We can’t hold them accountable for anything at all so we’re at their mercy,” she told reporters.

 

MAHB, however, reminded AirAsia today that all airport charges are regulated by the government, and that mechanisms for future hikes were clearly defined in MAHB’s operating agreement with Putrajaya.

 

The public finger-pointing between the two parties began when AirAsia boss Tan Sri Tony Fernandes rubbished MAHB’s justifications for the increased cost of KLIA2 on micro-blogging site Twitter on November 29.

 

He said the airport operator’s decision to increase the new terminal’s capacity to 45 million passengers per annum (PPA) from 30 million made little sense as that would make it larger than “the whole of Singapore’s Changi Airport”.

 

MAHB then claimed capacity expansion was done at AirAsia’s request, in line with the budget carrier’s own projections for future growth.

 

But AirAsia reiterated again today it did not ask for a larger terminal to be built now despite projecting that PPA will hit 45.3 million by 2020, noting that it had only asked MAHB to ensure KLIA2 could be expanded if needed.

 

KLIA2 will be the world’s largest LCCT when it is completed in April 2013, six months later than originally scheduled.

 

The cost of the terminal has nearly doubled to RM3.9 billion from RM2 billion since the project began in 2009.

 

Source

 

TF Tweets:

Just been told by TV 3 that malaysia airports is willing to sit down and discuss a contract and an SLA. Great news. Here's hoping. Win win for all. Great way to start our 10 year celebration. Thank you Tan Sri Bashir.

[Abdul Qayyum 0]

sometimes airport are flooded not only with travelers but also relatives/friend that come to send off..

[Azrin A 2]

AirAsia wants tenancy contract for KLIA2

 

SEPANG, Dec 6 — AirAsia says it wants a contract from Malaysia Airports Holdings Bhd (MAHB) for KLIA2 to ensure a minimum level of service from the airport operator and to avoid arbitrary airport charge hikes in future.

 

AirAsia commercial director Jasmine Lee said a service level agreement (SLA) would ensure MAHB was accountable for service quality at the new terminal and allow the airline to make more accurate cost projections.

 

She pointed out that there was no SLA in place at the current LCCT, just conditions of use.

 

“It’s like renting a house and the landlord is not giving you a tenancy agreement,” she told reporters at the airline’s office here.

 

“AirAsia is the victim here because we can be charged anything, anytime they want... We can’t hold them accountable for anything at all so we’re at their mercy.”

 

Source

 

If only AirAsia were given the Labu airport as they (with others) as originally planned, and if it materialise, going by the same logic, then can I say that we the consumers are at AirAsia's mercy since MAHB will never get involved with the running of Labu airport?

 

Personally I think they will be even worse than MAHB. My 2 cents worth.

[flee 5]

We will never know because AirAsia has now said that building airports is no longer on their radar. They are now focused on running LCCs.

[Nik H. 3]

Now TF is calling for truce when Kantoi Belit over the MAHB spat. But he is really good and this is what its all about. the ability to push and knowing the ability to pull back without admitting defeat. Or having to apologise. Or admitting a mistake but denying liability.

 

I can only look in admiration.

[Cire 0]

I thought today there's a press conference to clarifies the issues with MAHB..?

[flee 5]

I think AirAsia is right in calling for SLA. There are many things that can become unsatisfactory at the new mega LCCT.

 

e.g. it would not be good for an aircraft arrival or departure to be delayed because the MAHB aerobridge operator is late reporting for his duties. That will compromise the 25 minute turnaround time. I think many people think that turnaround time is when the aerobridge docks to when the aerobridge pulls back. But this is not the case. It is the total time the aircraft spends on the apron.

[alberttky 0]

I think AirAsia is right in calling for SLA. There are many things that can become unsatisfactory at the new mega LCCT.

 

e.g. it would not be good for an aircraft arrival or departure to be delayed because the MAHB aerobridge operator is late reporting for his duties. That will compromise the 25 minute turnaround time. I think many people think that turnaround time is when the aerobridge docks to when the aerobridge pulls back. But this is not the case. It is the total time the aircraft spends on the apron.

 

Currently who operates the aerobridges in KLIA? Here in SIN the aerobridges are operated by ground handlers. So if the same is happening in KUL then there's no case.

[Waiping 12]

Currently without using aerobridge AK's 25-minutes turnaround time is already compromised.

[flee 5]

CIMB Research: MAHB may have to raise funds for KLIA2

 

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has highlighted the likelihood of the company resorting to raising funds through equity next year for its capital expenditure (capex) on the development of KLIA2, according to CIMB Research.

 

In its follow-up report for a recent conference call with MAHB and 20 investors, CIMB Research said the airport management company was looking to place up to 10% of its issued capital.

 

“We have assumed in our model that MAHB will issue an additional RM600mil in equity via a 10% private placement of its shares at around RM5.50 per share,” it said.

 

Pointing out that MAHB would need cash by the second half of 2012, it said it expected the fund-raising process to start in the first half of next year.

 

“MAHB will draw down its remaining RM600mil debt facility, bringing its total debt to RM3.1bil. The remaining capex will be funded through its internal-generated funds of about RM50mil to RM60mil monthly. However, the management admitted that this would leave it in a tight position and it was likely to have to raise equity,” CIMB Research wrote.

 

“On a positive note, MAHB reiterated that it would maintain its 50% dividend payout ratio,” it added.

 

MAHB last month revealed that the total investment for KLIA2 would balloon to between RM3.4bil and RM3.9bil from the initially planned RM2bil due to the expansion of the size of the project. The project was expected to commence operations in 2013.

 

The higher cost of KLIA2 prompted CIMB Research to downgrade its call on MAHB to “neutral” with a target price of RM6.40, compared with RM6.90 previously.

 

The research house said while it was now slightly more positive on MAHB's expansion plan for KLIA2 following the recent conference call that it had with the company's management team, it remained cautious on the global economic outlook and its impact on MAHB's earnings.

 

“While MAHB believes that its expansion plan is justified over the long term, we think its near-term performance may be affected by low initial utilisation,” it said. “

 

We have reservations about MAHB's projection of 30 million passengers for KLIA2 in 2017 as we expect it to hit that mark only in 2020. On opening, KLIA2 will only be 47% utilised, rising to just 67% by 2020.”

 

Quoting MAHB chief financial officer Faizal Mansor, CIMB Research highlighted that global uncertainties would make 2012 a very challenging year for MAHB despite a seemingly “unchallenging” set of key performance indicators.

 

The company was expecting a 6.6% passenger growth and a target EBITDA (earnings before interest, tax, depreciation and amortisation) of RM822mil in 2012, compared with RM773.4mil for 2011.

 

“Unless the economy sinks into a recession, we think MAHB will have no problems meeting its target. Our forecast entails 7% passenger growth and an EBITDA of RM940mil,” CIMB Research noted.

 

It had previously projected an 8% passenger growth rate for 2012.

 

The revision, it said, took into account AirAsia Bhd's slower pace of capacity growth in its Malaysian operations compared with previous years, due to the relative maturity of the market, and as the low-cost carrier focused more on growth in other new markets such as Japan and the Philippines.

 

It added that Malaysian Airlines' plan to streamline its routes to turn around the company could have an impact on MAHB's earnings through fewer passengers travelling through KLIA's main terminal building over the next few years.

 

“However, we are comforted by the strong demand for its retail space for KLIA2; MAHB should have no problems attracting quality tenants and will be able to get revenue streams such as lease rental and advertising income by funding the government assets. Despite the high initial capex, MAHB could recoup its investment in probably 10 years,” it said on the outlook for MAHB's bottomline going forward.

 

Source

[Naim 6]

“So you have two control towers within two km of each other, the only modern airport in the world... with two control towers." - Tony Pua

 

Pua blames KLIA2 cost bloat on site shift

 

http://www.themalaysianinsider.com/malaysia/article/pua-blames-klia2-cost-bloat-on-site-shift/

 

===

[alberttky 0]

“So you have two control towers within two km of each other, the only modern airport in the world... with two control towers." - Tony Pua

 

Pua blames KLIA2 cost bloat on site shift

 

http://www.themalaysianinsider.com/malaysia/article/pua-blames-klia2-cost-bloat-on-site-shift/

 

===

 

Too expensive to install CCTVs! So need 2 control towers!

[Kee Hooi Yen 0]

any skybridge linking the two towers ?

Edited December 14, 2011 by Kee Hooi Yen

[Mike P 0]

Why do they need two control towers? silly....

[Sandeep G 1]

actually, there are a few sprawling airports that have more than 1 tower.

 

In this case, the second tower is required for Runway 3 as perhaps the original tower is not able to see as far. Furthermore, the new apron will require visual acquisition by tower personnel operating the 'ground' or 'apron' frequency - much like the mini-tower between the present SAT A and LCCT.

[alberttky 0]

How many runways are there in the KLIA grand masterplan?? Therefore how many towers are they gonna build?