KLIA2 - New Mega Low Cost Carriers Terminal

[leon t 0]

imagine TF can spent over few HUNDRED million by sponsoring and buying foreign sports team! - hence even he recover rm2 mil from use of aerobridge would costs a dollar or two for every single pax that he can recover from its ancillary sales - like the recent increase in baggage purchase fees, rm10 in counter check-in! and the quiet increase in inflight food n drinks sale and most importantly the overall increase in fares and "admin fees"!

And aerobridge does not really affect theturnaround time - as with 13 daily flights into SIN and have seen their planes turnaround even in under 30 mins!

[Johan Z 0]

They can only use an aerobridge if they are pregnant women, disabled or oldies or during raining period. I don't believe they have this pax all the time.

[flee 5]

And yet he uses Terminal 1 in CHangi. Not the budget terminal.

I think this comes up everytime there is a discussion on aerobridges and the AK group airlines.

 

In Changi, they can see the "value added" in using T1 - they can pick up pax from airlines serving in Changi if they are there. Remember, Changi is a far superior hub for connections than KLIA MTB. So the extra cost of services at T1 will yield returns. That is why they keep increasing their KUL-SIN flights. There is clearly a demand on this route as operated from T1.

 

And as alberttky has said, the Changi Budget Terminal just isn't big enough for all of AK Group airlines' flights.

 

when i was in norway recently, norwegian.no 737 planes managed 30min turnaround, aerobridges and all.

The flip side is also true - TF was raving about US Air using stairs at Boston. I guess it all boils down to whether he wants to use the aerobridges or not.

 

imagine TF can spent over few HUNDRED million by sponsoring and buying foreign sports team! - hence even he recover rm2 mil from use of aerobridge would costs a dollar or two for every single pax that he can recover from its ancillary sales - like the recent increase in baggage purchase fees, rm10 in counter check-in! and the quiet increase in inflight food n drinks sale and most importantly the overall increase in fares and "admin fees"!

And aerobridge does not really affect theturnaround time - as with 13 daily flights into SIN and have seen their planes turnaround even in under 30 mins!

You hit the nail on the head - every RM 1 paid by the pax to MAHB is RM 1 lost ancillary revenue for AK Group airlines. Paying more to MAHB means pax got fewer RMs to spend with AK Group airlines. He is really looking at the big picture while everyone else is bitching about smaller things.

[Cheng Long 0]

Brief summary..

We will have KLIA2 which can handle more pax than KLIA, comes with a third runway, aerobridge, advanced baggage handling system, moving walkways, fancy designs with a bridge, large retails area, premium lounge, hotels and etc.

 

But significantly cheaper airport tax than KLIA..What more with AirAsia refusing to pay for the hike.. I think MAS should move to KLIA2 also to cut cost.

 

My linkhttp://www.themalaysianinsider.com/malaysia/article/dap-asks-why-klia2-must-cater-for-a380s/

[Mike P 0]

I was thinking if QF ever shifts their hub from SIN to KUL and even forms up the RedQ based in KUL, does KLIA is big enough to accommodate? Perhaps KLIA 2 is really meant for the "Red Operators"? Who knows. MAHB has been very crafty all this while.

[alberttky 0]

I was thinking if QF ever shifts their hub from SIN to KUL and even forms up the RedQ based in KUL, does KLIA is big enough to accommodate? Perhaps KLIA 2 is really meant for the "Red Operators"? Who knows. MAHB has been very crafty all this while.

 

Maybe... Never know what Alan and Tony have up their sleeves.

[Mike P 0]

Maybe... Never know what Alan and Tony have up their sleeves.

 

I think it's MAHB being up to something... Setting up some Feng Shui to lure the operators from BKK and SIN to here?

[Mohd Azizul Ramli 2]

He is really looking at the big picture while everyone else is bitching about smaller things.

Exactly my point. People, we should be bitching about why MAHB burst their budget by 100%, successfully delaying the completion of KLIA2 by 1 year, spending lavishly on non pertinent items for KLIA2 some of which have zero ROI (e.g. the aerobridge), have analysts mentioned the company as having no business sense, not listening to what its no. 1 client wants, have the no. 1 client in KLIA2 publicly denounced them as the worst running company in Malaysia, sabotaging D7's growth, taking their own sweet time while Scoot is up and running ready to take on D7's lead - yet we are bitching about using the aerobridge as if it is the last boat on Titanic. WTH???

 

Personally I am very ashamed of how MAHB is running. Some Malays out there are working their asses trying to prove to the world that they are worthy but a Malay majority run company led by a Malay CEO like MAHB (whose stake is >50% owned by Khazanah which indirectly means it is mingling with public fund) proves that accountability means nothing and that all the faults in what almost everyone said as a very bad project management is tak apa and forgettable. There I said it!

[KK Lee 5]

DAP asks why KLIA2 must cater for A380s

By Shannon Teoh

November 30, 2011

 

KUALA LUMPUR, Nov 30 — DAP said today the new low-cost carrier terminal (KLIA2) was fast looking like a replacement for the full service main terminal following upgrades that have doubled its cost to RM3.9 billion.

 

Publicity chief Tony Pua said provisions to cater for Airbus A380s, the world’s largest passenger aircraft, along with moving walkways, an automated baggage system, shopping mall, premium lounge and four hotels were unnecessary for a low-cost terminal.

 

“Which low-cost carrier is going to use an A380? This gives the impression that KLIA2 is a replacement for the main terminal.

 

“The Transport Ministry and Malaysia Airports Holdings Berhad (MAHB) appear to have gotten the concept of a low-cost terminal upside down,” the Petaling Jaya Utara MP told a press conference.

 

MAHB revealed yesterday that the cost of KLIA2 had ballooned from an initial RM2 billion to RM3.9 billion after moves to enlarge the terminal’s floor space and lengthen the runway so that “even Malaysia Airlines with their 747 can use the runway.”

 

Managing director Tan Sri Bashir Ahmad Abdul Majid also said it will only be operational in April 2013 instead of earlier plans to be completed in the third quarter of this year.

 

Pua further criticised the expansion to cater to 45 million passengers per year instead of 30 million, saying this meant “MAHB is building a terminal 80 per cent larger than the main terminal”, which has a capacity of 25 million passengers.

 

He noted that the passenger traffic at the current low-cost carrier terminal (LCCT) was only 15.4 million, and when combined with the main terminal, this only totalled 34 million.

 

He said that MAHB was falling into the trap of being obsessed with “everything big” given that Dubai, “one of the busiest hubs in the world today, served 47 million passengers while Changi (Singapore) served 42 million in 2010”.

 

One market analyst has since downgraded MAHB shares over the delay and increased cost of the project.

 

http://www.themalaysianinsider.com/malaysia/article/dap-asks-why-klia2-must-cater-for-a380s/

[Mike P 0]

DAP asks why KLIA2 must cater for A380s

By Shannon Teoh

November 30, 2011

 

KUALA LUMPUR, Nov 30 — DAP said today the new low-cost carrier terminal (KLIA2) was fast looking like a replacement for the full service main terminal following upgrades that have doubled its cost to RM3.9 billion.

 

Publicity chief Tony Pua said provisions to cater for Airbus A380s, the world’s largest passenger aircraft, along with moving walkways, an automated baggage system, shopping mall, premium lounge and four hotels were unnecessary for a low-cost terminal.

 

“Which low-cost carrier is going to use an A380? This gives the impression that KLIA2 is a replacement for the main terminal.

 

“The Transport Ministry and Malaysia Airports Holdings Berhad (MAHB) appear to have gotten the concept of a low-cost terminal upside down,” the Petaling Jaya Utara MP told a press conference.

 

MAHB revealed yesterday that the cost of KLIA2 had ballooned from an initial RM2 billion to RM3.9 billion after moves to enlarge the terminal’s floor space and lengthen the runway so that “even Malaysia Airlines with their 747 can use the runway.”

 

Managing director Tan Sri Bashir Ahmad Abdul Majid also said it will only be operational in April 2013 instead of earlier plans to be completed in the third quarter of this year.

 

Pua further criticised the expansion to cater to 45 million passengers per year instead of 30 million, saying this meant “MAHB is building a terminal 80 per cent larger than the main terminal”, which has a capacity of 25 million passengers.

 

He noted that the passenger traffic at the current low-cost carrier terminal (LCCT) was only 15.4 million, and when combined with the main terminal, this only totalled 34 million.

 

He said that MAHB was falling into the trap of being obsessed with “everything big” given that Dubai, “one of the busiest hubs in the world today, served 47 million passengers while Changi (Singapore) served 42 million in 2010”.

 

One market analyst has since downgraded MAHB shares over the delay and increased cost of the project.

 

http://www.themalaysianinsider.com/malaysia/article/dap-asks-why-klia2-must-cater-for-a380s/

 

Like what I said in the previous post.

[Kaquah 0]

The main aim of high investment to get recognition and best award in LCC airport category for first few years where KLIA still below full capacity. Malaysia boleh spirit. Could consider as ADVERTISEMENT COST recorded in Malaysia Boleh book?

 

When completed KLIA2 it seems like more sophisticated then KLIA.

 

They never mentioned return period when they expected to get back their INVESTMENT costs.

 

At the end taxpayer's will taken up the loss and written off in the BOOK.

 

I am frequent LCC user's definitely I am welcoming KLIA2

Edited November 30, 2011 by Kaquah

[Mike P 0]

The main aim of high investment to get recognition and best award in LCC airport category for first few years where KLIA still below full capacity. Malaysia boleh spirit. Could consider as ADVERTISEMENT COST recorded in Malaysia Boleh book?

 

When completed KLIA2 it seems like more sophisticated then KLIA.

 

They never mentioned return period when they expected to get back their INVESTMENT costs.

 

At the end taxpayer's will taken up the loss and written off in the BOOK.

 

Never heard of LCC Airport Category in Skytrax. Just in general. I think if Brunei is going to build one LCC to compete, they will always win. With extremely low charges and toilet rolls holder made in Gold, why won't he win?

[flee 5]

I think D7 has to be very worried.

 

2011 is a year of zero growth (as far as new aircraft deliveries are concerned) and now, 2012 may be the same as they have to think how they are going to deploy the new aircraft that will be arriving in a capacity constrained LCCT. Maybe MAHB should offer them free parking and landing fees as compensation for the delays.

 

Like it or not, D7's flight schedules will be severely compromised by the MAHB's poor project planning and management. KLIA2 is now about 3 years too late.

 

D7 really need to consider flying from SIN/BKK/CGK and offer their pax a free AK connecting flight to catch their plane at at these airports! Either that or D7 should consider setting up in Japan or Australia.

 

D7 must really look to revise its business model in light of MAHB's total incompetence. Otherwise, its survival might even be threatened.

[alberttky 0]

I think D7 has to be very worried.

 

2011 is a year of zero growth (as far as new aircraft deliveries are concerned) and now, 2012 may be the same as they have to think how they are going to deploy the new aircraft that will be arriving in a capacity constrained LCCT. Maybe MAHB should offer them free parking and landing fees as compensation for the delays.

 

Like it or not, D7's flight schedules will be severely compromised by the MAHB's poor project planning and management. KLIA2 is now about 3 years too late.

 

D7 really need to consider flying from SIN/BKK/CGK and offer their pax a free AK connecting flight to catch their plane at at these airports! Either that or D7 should consider setting up in Japan or Australia.

 

D7 must really look to revise its business model in light of MAHB's total incompetence. Otherwise, its survival might even be threatened.

 

Yes I also hope that D7 start to base some of their aircraft outside KUL. They might just find new business segments by doing so.

[flee 5]

Fernandes, Malaysia Airports in standoff over KLIA2 cost rise

 

KUALA LUMPUR, Nov 30 — A leading local entrepreneur and one of the country’s top GLCs are now locked in a face-off over the ballooning cost of the new low-cost carrier terminal (KLIA2) that could threaten Malaysia’s ambitions to be a regional transport hub.

 

Also at stake is whether the bad blood brewing between the two parties could affect the overseas growth of both Malaysia Airports Holdings Berhad (MAHB) and one of its biggest customers and what is now Asia’s fourth-largest airline, AirAsia.

 

AirAsia CEO Tan Sri Tony Fernandes yesterday rubbished MAHB’s justifications for the doubling of the cost of KLIA2 from the original estimate of RM2 billion in 2009 to RM3.9 billion currently.

 

He said on Twitter that increasing the terminal capacity from 30 million to 45 million passengers made little sense as it would make it larger than “the whole of Singapore’s Changi Airport” and suggested that the cost would likely inflate even further.

 

“American Airlines just gone into bankruptcy. And Malaysian Airports spend 3.9 billion. I’m sure that’s not the final figure,” he tweeted, referring to the news that the US airlines’ parent company — AMR Corp — filed for bankruptcy yesterday.

 

MAHB maintains, however, that it needs to plan for future capacity as other airports are doing and expects KLIA2 traffic to hit 30 million as early as 2017.

 

A check on Changi Airports International’s website also shows that Changi Airport has a capacity of about 70 million.

 

The price-sensitive airline magnate also told The Malaysian Insider that he doubted MAHB managing director Tan Sri Bashir Ahmad’s assurances yesterday that the increased cost will not result in higher passenger fees and other airport related charges, adding that he lost faith in the airport operator after it allegedly failed to live up to a previous “guarantee” to not increase in airport fees.

 

“I am very disappointed in MAHB. They guaranteed no increases even at the present terminal,” he said via text message, referring to the fact that MAHB recently started charging an extra RM7 per international passenger at the existing low cost carrier terminal (LCCT).

 

Bashir had pointed out yesterday that the airport charges and fees were regulated by the government and said that the fees for KLIA2 when it opens for business in April 2013 would be the same as that of the LCCT, at least until the next government review.

 

The MAHB managing director, whose contract reportedly ends in June next year, also touched a nerve when he announced yesterday that 80 aerobridges will be installed at KLIA2 despite much lobbying by Fernandes to omit the facility to help keep down costs. Bashir said that aerobridges would help the elderly, infirm and others who suffer restricted movement and said that the average extra cost per passenger was a negligible 25 sen.

 

Fernandes, however, seized on MAHB’s apparent defiance as an example of a breakdown in private-public co-operation.

 

“Look across the Causeway and look at Singapore,” he said. “They listen to their airlines. Their budget terminal has no aerobridges.”

 

He also noted on Twitter that his flight to Boston, US where he is meeting investors also did not utilise an aerobridge.

 

“Came off US Airways on steps just like AirAsia. Hahahahaa. Can’t believe how Malaysian Airports gets away. Worst run Malaysian company. Full of empty promises,” he tweeted.

 

Some MAHB executive, however, expressed private fears that the public spat between the two entities could harm the GLC’s image abroad where it is trying to expand its airport business.

 

Fernandes has built his business around keeping costs down and has often complained that the claimed lack of responsiveness of MAHB could threaten to derail AirAsia’s expansion plans to become the second largest carrier in Asia after Japan Airlines.

 

With AirAsia expected to be the largest budget airline flying out of KLIA2 by far, Fernandes’ response that he will not use the aerobridges despite Bashir’s public plea for support means this is a stalemate that could determine if KLIA2 takes off or simply crashes and burns.

 

Source

[chookyan 0]

I think it's MAHB being up to something... Setting up some Feng Shui to lure the operators from BKK and SIN to here?

 

No way this will happen! Connectivity is KLIA is so poor, why should airlines take the risk of moving from BKK and SIN? The question is how can MAHB keep increasing the cost after construction started. Where is the planning? Just because it is tax payers $$$$, they are running it like having a undated and no amount filled pre signed cheque. Even the KLIA website is totally carp. Flights information totally useless.

[BC Tam 2]

With all this (seemingly) bad blood between AK group and MAHB, are we in any danger of seeing a BKI T1 fiasco redone for KLIA2 ?

What is just one more white elephant to add to the already impressive list anyway ?!

[flee 5]

With all this (seemingly) bad blood between AK group and MAHB, are we in any danger of seeing a BKI T1 fiasco redone for KLIA2 ?

What is just one more white elephant to add to the already impressive list anyway ?!

TF is going to Japan tomorrow. No doubt he will be discussing plans for AirAsia Japan again. Everyone in Japan are gung ho about their plans. Maybe AirAsia Japan will scale up and D7 may actually lease their A330s to them since they cannot make use of them in KUL.

 

TF needs a long term strategy now that MAHB is really compromising their growth plans. In a recession (which many people seem to think is coming soon), LCCs tend to fare better as people downgrade to lower cost travel. It would be a shame if the AK group airlines are not able to make a killing because their HQ has no more capacity.

 

‘World class’ KLIA2 may make KLIA irrelevant, says Maybank IB

 

KUALA LUMPUR, Nov 30 — The new low cost carrier terminal being built by Malaysia Airports Holdings Berhad (MAHB) conforms to such high specifications that it risks making the main KLIA terminal redundant, Maybank Investment Bank said today.

 

The research house noted in a report today that now any airline can land at KLIA2, which is equipped to cater for even the world’s largest passenger plane — the A380 — and that it is not exclusive to budget airlines like AirAsia.

 

“We are concerned that if KLIA2 turns out to be as good as according to plans, airlines executives may then question the premium at the KLIA main terminal,” said Maybank.

 

It estimated that by moving from the main terminal to KLIA2, international passengers will only pay RM32 PSC (passenger service charges) as opposed to RM65 at the main terminal, or the equivalent of 51 per cent cost savings.

 

“This may potentially dilute MAHB’s earnings as KLIA2’s charges are lower than the main terminal,” said the report.

 

KLIA2, which was originally conceived as a terminal for low cost carriers, grew sizeably in scope including the construction of facilities that will make the terminal a back-up for the main terminal, almost doubling the cost to RM3.9 billion in the process.

 

MAHB also decided to bring forward capital expenditure in an attempt to future proof the airport — the terminal features a runway capable of handling A380s and 747s and also a higher capacity of 45 million passengers per annum, or three times that of the present low cost carrier terminal and three million more passengers than what Singapore’s Changi Airport handled in 2010.

 

It also made a publicly popular decision to install aerobridges, a decision which earned the ire of AirAsia which has been against the concept as it would mean longer aircraft turnaround times and additional charges, although MAHB insists the cost to passengers is negligible.

 

AirAsia chief, Tan Sri Tony Fernandes, who built his empire by focusing on cost-cutting measures, said he feared that the ballooning price tag of KLIA2 would translate to higher airport taxes and fees in the future despite assurances from MAHB that it would not.

 

Maybank said in its report that it agrees with MAHB that KLIA2 will have an internal rate of return of more than 10 per cent but that was premised on an additional RM2-3 billion in non-aeronautical revenue to be derived from the expanded terminal over the concession period.

 

When it opens for business in April 2013 after a 17-month delay, KLIA2 will feature amenities that will rival those of most full featured airports including a huge shopping mall, premium and VIP lounges, hotels and Asia’s first airport skybridge measuring about 300 metres.

 

A Maybank analyst noted that MAHB appeared to be “going for broke” and by catering for 45 million passengers per year instead of the planned 30 million, it will have the single largest passenger terminal capacity in the world, surpassing the previous record holder, Dubai’s T3 which has a capacity of 43 million.

 

The analyst noted that while KLIA2 will earn MAHB bragging rights, the financial implications have changed.

 

“As an investor, the investment thesis for MAHB has now changed to a very long-term project. Big mammoth projects take time to grow and churn significant cash flow, the initial period will be a cash flow burden,” said the analyst.

 

The analyst concluded, however, that the new terminal was “very positive” for Malaysian aviation as the infrastructure will support uninterrupted growth for the next 10-15 years but the cash flow burden in the initial years will likely lower profit margins and undermine valuations.

 

Source

[Izanee 0]

agree with Doc Naim and Azizul, CIMB appears to be encouraging people to BUY air asia shares on top of all that. RM 85 per aircraft for the aerobridge is NOTHING compared to the ease and comfort of his passengers, especially the elderly and infirm. TF states that changi budget terminal does not have aerobridges. How is that relevant when AK flies into the normal terminal and uses aerobridges?

Yes, the costs of the terminal have overrun, but are we really surprised? Everywhere in the world building/major projects have cost overruns.

This terminal is now future proof, with a LARGE capacity and aerobridges plus an additional runway (you can argue again if that is necessary). As mentioned in the article above --> growth will then be uninterrupted for at least 10 years as the infrastructure is in place. It seems like TF is getting a good deal.

 

TF uses the KLIA2 delays as reasons for delaying aircraft delivery. I somehow think it has all got to do with LACK of money.

He can easily base aircraft in PEN, BKI, JHB etc etc if there is no apron space in KLIA. Seems like there is a LOT of space in KLIA, even now.

Its all bullshit. Tony, just be grateful you had so much help to get there, and stop being a pain in the ass.

Edited November 30, 2011 by Izanee

[S M Tang 0]

when i was in norway recently, norwegian.no 737 planes managed 30min turnaround, aerobridges and all.

 

 

They should send their management to Dallas and learn from the granddaddy of LCCs - Southwest. For years they've been using aerobridges and their turnaround time averages 23 minutes.

 

Maybe it just boils down to the Malaysian attitude once again. Was trying to think up reasons for TF to be so against aerobridges but I think I can't think of any already. I guess Tony is just being Tony. Thanks for pointing out that even with aerobridges, turnaround time of less than 30 minutes is possible. I always thought it was rather hard to achieve that.

[flee 5]

I recalled D7 had to defer 6 A333s this year due to space constraint at KUL. Many people has said about sending D7's aircrafts to other JVs to solve the problem but I don't think it can be done that easily. First of all, D7 is just an associate company of AK which means D7 does not have any relationship whatsoever with FD and QZ other than common directors. This will result in things have to be done in normal ways between 3rd parties, not as inter company transactions. Then we have issues about manpower (no. of staff and crew training) to operate a different type of aircraft than the standard A320s. Then we have another issue, while the market may indicated that there is a strong long haul demand from BKK and CGK, the associates there simply may not have the financial muscle to acquire the aircraft.

I strongly suspect that they will do something in Japan. Azran has just arrived on the inaugural flight at KIX and TF will be going to Japan today. So they may be pow wowing with the partners ANA to devise a strategy to overcome to stupidity and over exuberance of MAHB...

 

even with aerobridges, turnaround time of less than 30 minutes is possible. I always thought it was rather hard to achieve that.

I think TF is already wise to MAHB's frequent u-turns and breach of promise. MAHB may be baiting him with the RM 85 charge for aerobridges. But as soon as they start using them, what makes you think MAHB will not increase the price, like they bull dozed their Airport Tax and other fee increases? Being a GLC, there is no way to fight them. So its better to keep the aerobridges at bay before they start to hurt you with ever rising charges.

 

Whoa, TF is really furious! More tweets:

 

To all malaysians. Airasia has made flying affordable for all. Before it was just for the rich. We won't allow Malaysian airports to keep wasting money and increase charges for you. We will fight. Our campign starts tomorrow.

 

For someone in kuching airport tax is now 65 ringitt. That's half our airfare to singapore. How can we develop tourism in sarawak.

 

Langkawi is the same. 65 ringitt. There are only 2 international flights. We at airasia wanted to develop more. We asked for lower tax. What did MAB do. Raise it. So no one flies to Langkawi. Real smart.

 

Malaysia airports after the Prime minister intereved reduced tax from 55 to 25. We restarted a flight from miri to singapore. And soon starting miri bangkok. Who wins. Everyone.

[JuliusWong 0]

TF is starting a war.....

 

Facebook status:

Tony Fernandes

To all Malaysians. Airasia has made flying affordable for all. Before it was just for the rich. We won't allow Malaysian airports to keep wasting money and increase charges for you. We will fight. Our campaign starts tomorrow.

Like · · Share · 102 192 · 5 minutes ago via mobile ·

[Izanee 0]

'who wins? everyone!' hmmm.. i think its just you Tony. U start routes for a while and then pull out. Not really there for the people, are you?

[JuliusWong 0]

To be fair, you can't blame TF from pulling out certain route which were not making profit at all. Air Asia Group is a private entity that is answerable to all shareholders. Looking back on the list of terminated route ost of them are terminated due to commercial reasons.

 

Below are the list and reasoning we had have heard.

Asia

East Asia

People's Republic of China - Haikou, Xiamen-

Haikou: limited freqency.

XMN: High operating costs, limited load factor and a price war with Thai Airways International, shift aircraft to BKK-HCM and BKK-CGK, both have better economic propositions.

 

South Asia

Bangladesh - Dhaka- Yield was low due to intense competition. Worse off, AK fired their GSA as they didn't take their job seriously. AK searched for replacement but couldn't find any. Biman Bangladesh Airlines, GMG Airlines, Malaysia Airlines and United Airways all jostle with one another for a slice of the pie

India - Hyderabad, Thiruvanthapuram- Turnaround time and flight duration are too long for sustainable profit

 

Southeast Asia

Indonesia - Batam, Manado- Frequency is too low for profits. Both dropped to focus on more high yielding routes

Malaysia - Ipoh,Kuantan- Low yielding routes....who would go all the way to LCCT to take these flight? FY would be a better choice. KTMB or bus well.

Thailand - Bangkok - Don Mueang, Khon Kaen, Ranong- Again low yielding routes, DMK closed down

 

Southwest Asia

United Arab Emirates - Abu Dhabi- Who can fight EK, EY and QR nowadays??

 

Europe

United Kingdom - London-Stansted- Move over to Gatwick

 

Air Asia rather spend the money of routes that are churning big profit for them rather than wasting money on unprofitable route or route with low yield. Mistaken learnt, action taken.

 

Air Asia Group think fast, act fast....unlike MH, slow like garden snail...now dying a slow death.....even with Government bailing out time after time.

Edited November 30, 2011 by JuliusWong

[KK Lee 5]

Given new LCCT size, distance i.e. time for luggage and pax to travel from checkin counter to boarding gate will likely force AK to close the checkin window early.

 

Given MTB is the pride of MAHB, the new LCCT performance couldn't be better than MTB. Luggage delivery time is unlikely will be faster than MTB, it will be over stretched for D7 to operate fight transit at the new LCCT without extending transit time.

 

The new LCCT completion is almost certain will be further delayed by the ‘world class’ luggage system.

 

If TF has his way, AK will not shift the operation to the new LCCT, AK and D7 will focus their expansion in Indonesia.

 

By the time LCCT is in operation, most decision makers currently at MAHB are happily but unlikely to be around to take the heat.