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Waiping

Fernandes: Illogical to move us to KKIA

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KUALA LUMPUR: Sabah stands to lose millions of ringgit in tourist revenue should AirAsia be forced to relocate its operations to the main terminal at Kota Kinabalu International Airport (KKIA) from its current location at the low-cost terminal.

 

Datuk Seri Tony Fernandes, Group CEO of AirAsia Berhad, said that it did not make sense to move their operations as there were not enough facilities available at KKIA to cope.

 

He told reporters during a press conference last Friday that he was strongly against such a move as it would translate into higher fares and airport charges for passengers, and this would effectively limit the company’s ability to add new routes and new planes.

 

He suggested that Malaysia Airports Holdings Berhad (MAHB) should instead move the present cargo area and allow AirAsia to expand its operations.

 

Fernandes said by adding just two more planes, they could add up to 800,000 passengers per year.

 

“This works. Six planes, millions of passengers – let’s expand it. As opposed to forcing us to move to a terminal where the cost is going to go up to RM51 (airport tax), the charges are going to go up because of aerobridges, and we’re going to have no parking and not enough check-in desks. It’s illogical to me. So, of course we’re against it.”

 

Fernandes said that it was more viable to expand the existing low-cost terminal operations as Sabah had much potential to cater to lucrative regional markets such as Japan, Australia, South Korea and China.

 

The need to expand comes at a time when Sabah is facing increasing competition from the Philippines as a regional hub for air travel.

 

Fernandes said that he was grateful to Sabah as the state was one of the first to offer support to AirAsia when they were still a fledgling airline company.

 

“Sabah is really our home in many ways. We wouldn’t be where we are without Sabah.

 

“Yet, rather than develop the KK low cost terminal, they want to close it down. I don’t understand. It’s one of the success stories of Sabah.”

 

Fernandes cautioned that if they were forced to move, AirAsia would drop its Jakarta-KK route and may have to cancel other routes as well.

 

http://www.theborneopost.com/?p=93137

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At one end of the new KKIA is an area of open parking. The ATR will utilize this area. Any airline that don't want to use the aerobridge can also utilize that area.

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If you are in KL, would you prefer to travel to KLIA or LCCT? My choice goes to KLIA. Now if you are in KK, the obvious choice would be to go to T1 iso T2. Reason being the traffic at T2 surrounding area is really bad especially during peak hours. There is only a single route in and out of that area, compared with a few that you can use to and fro T1.

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they dun wan to move to t1 but still ask for expanding T2 :D

He is implying that T2 is already not big enough - moving to T1 will be even worse since he claims that there are not enough facilities like check in counters, etc. for AK's existing ops. Furthermore, Airport Tax will increase to RM 51. There is some logic in this but I think that the truth is somewhere in between...

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Shut up TF!! Just obediently move to T1, so that those of us from Lahad Datu, Labuan, Kudat, Brunei, Lawas, Limbang, Sibu, & Bintulu...etc... can easily connect to/from your flights!! Don't you like that?

 

And furthermore DSNR & his cabinet want to use T2 to park their Perdana 1,2,3,4.... & your passengers always jam up the road & terminal. Not enough space larr.. :p

Edited by Andi C

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he is just the man who goes around the procedures, law, protocols on the malaysian aviation industries. how did he can get away with all the under the table dealing, close eye situation. dca / mot , what happen to u people??

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I think let AK just stay at T2, if the company thought staying at T2 is good for them and the tourism industry in the state as a whole, let them stay at T2. Probably MAHB should start thinking about connecting between these two terminals using shuttle buses, free of charge would be better. :pardon:

 

Don't forget, the road leading to T2 is not only used by passengers alone, but also vehicles going in and out from the nearby school (SK Tanjung Aru I and II) especially during morning, midday and late afternoon.

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AK caters for price conscious customers, some will even scream and rant at a few ringgits difference.. Moving to the T1 will likely mean the same airport tax as their main rival, MH, this will take away some of their advantage.. So in that sense, it will not benefit them to move.

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I think it's illogical to expand T2 when T1 itself is still under-utilized. More wastage of public funds.

And I don't understand the crap he's saying that T1 has not enough check-in counters.. he can have islands C & D all to himself if he wants to.

Tourists arriving to KK through T2 will have a bad first impression of the airport. Poor security at the tarmac, congested and uncomfortable immigration room.. Third world mentality to think this is OK just to save a few bucks.

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Fernandes cautioned that if they were forced to move, AirAsia would drop its Jakarta-KK route and may have to cancel other routes as well

It's this sort of illogical scare/bully tactic that arrogance brings out in people I suppose - shame really, cause they genuinely looked good back in those early days :(

But I suppose life goes on - and we do have FireFly waiting on the sidelines nowadays

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More Tweets from TF:

 

cargo terminal is easy to move and is tiny.

 

MAB is not supporting us despite all we are doing. KK jakarta is losing money and moving to main terminal will be even worse.

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At one end of the new KKIA is an area of open parking. The ATR will utilize this area. Any airline that don't want to use the aerobridge can also utilize that area.

 

Yup, agreed. Gate A11-A13 at T1 now ready for any arline that don't want to use the aerobridge. So TF, please don't give any excuse reason. TF, if u don't want to move first why u suggest cargo terminal to move?

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I don't see how they should continue to maintain BKI-CGK if it continues to lose money. AK ain't that stupid. Not the first time AK would drop any route by the way.

 

I wonder if AK would be interested in joint venture to expand T2 if invited by the government. Currently T2 is really like LCCT at KLIA when the traffic started booming a couple of years back. There is hardly enough seats available especially during peak hours. On the other hand, the new wing at T1 is still severely under utilized.

Edited by Waiping

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BKI is an important hub for AK. So they are having a big headache trying to justify its existence. I really wonder why MAHB built an LCCT only to have it terminated less than 4 years after opening? Doesn't it show that it is flip flopping? Now u see it now you don't?

 

Here is some info on AK at BKI:

 

Kota Kinabalu is AirAsia's second and biggest hub after Kuala Lumpur and serves nine domestic routes including Penang, Kuching and Sibu while the international sectors are Macau, Shenzhen, Clark, Jakarta and Singapore.

 

I wonder if AK would be interested in joint venture to expand T2 if invited by the government. Currently T2 is really like LCCT at KLIA when the traffic started booming a couple of years back. There is hardly enough seats available especially during peak hours. On the other hand, the new wing at T1 is still severely under utilized.

I think that AK has given up on trying to become an airport operator. However, I can see that TF is anxious that moving to T1 will blunt AK's competitiveness and stunt its growth at BKI. Remember, AK's growth there only came about after the LCCT opened.

 

I flew to BKI just days after the LCCT opened (the apron concrete was still being laid!) and it was very quiet then. It is a different scenario now. I wonder if AK would have been able to expand so rapidly in BKI if there was no LCCT?

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The other thing about T2 is that there is hardly anymore room to expand and build new structure.

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The other thing about T2 is that there is hardly anymore room to expand and build new structure.

Well MAHB can tell him to shut up and move to T1 and still charge the lower T2 Airport Tax for LCCs. That will take the wind out of TF's arguments.

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If one is to believe wholly the story spun, BKI's T2 has always been earmarked as the cargo terminal, it was in a sense meant to be AK's temporary base awaiting completion/reconstruction of T1 (I cannot even begin to imagine the disastrous scenario had both AK and MH had to share T1 during the past few years)

If now the newly minted T1 is ready (at some considerable expense) and some party deigns it inappropriate to shift over due to some very cleverly crafted excuses (albeit somewhat shallow imho) together with some blatantly vile threats of retribution should they not get their way - well, it does leave a rather unpleasant after taste

 

I have my suspicion much of the issue boils down to

1) who bears the cost of relocating operations to T1

2) who benefiits from expansion (reconstruction ?) of T2, irrespective of whether such expansion is justified

 

The argument about difference in PSC (something like rm26) is imo just whitewash - who amongst us has ever quibbled over that amount when making a decision on whether to travel or not ?

 

And make no mistake, the almost concurrent declaration of intent to develop Kuching and Miri 'hubs' is, I believe ammunition in their arsenal

 

And if BKI-CGK, or any other routes in fact, prove unviable, tick them off the list. It has always been AK's (very commendable) philosophy anyway. Just don't try insult our intelligence with "I will chain myself and the FRU (Federal Reserve Unit) has to take us" and "AirAsia also had plans to use the low-cost terminal in Kota Kinabalu as a major eastern hub to venture into markets in North and South America, Australia, Korea, China and Japan."

 

Well yeah, if it all boils down to it, let things run its course and see whether AK is more important to BKI or BKI is more important to AK/D7/Dato TF :)

Just don't let there be anymore white elephants lounging round our nation than there are now :D

 

 

Well MAHB can tell him to shut up and move to T1 and still charge the lower T2 Airport Tax for LCCs. That will take the wind out of TF's arguments.

If I'm not mistaken, there are two or three of those 'hammerheads' at BKI's T1 which have not been equipped with aerobridges

One can only assume the aerobridges were deleted in anticipation that certain operator(s) was not willing to pay for their usage, purpotedly saving costs :D

Edited by BC Tam

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Common AK, you want to get more passengers, move to T1, want to tackle MH, move to T1. Here in T1, MAHB even provide aerobridgeless gates so AK can utilize it.

 

Probably next time, a general aviation airport should be built so Sabah Air operations can be moved there, leaving plenty of spaces for T2 (by then a cargo terminal) to expand.

 

Another scenario: plenty of empty spaces around SK Tanjung Aru I and II, and the schools are so so close from the runway and the traffic is so much busier now, although pupils whose classes are in the upper floors are treated to excellent views of T2 tarmac and the runway. The schools should be moved somewhere else to make way for more airport expansion.

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There is also another joker in the pack now - it is called Firefly. TF knows that Firefly will not use LCCTs due to their MH codeshare agreements. So he is seeking to retain their competitive advantage. As I said, there is a lot more to it than what has been disclosed so far. Competition is good - it forces businessmen to become more ingenious in trying to win our business.

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The argument about difference in PSC (something like rm26) is imo just whitewash - who amongst us has ever quibbled over that amount when making a decision on whether to travel or not ?

I believe he is concerned that every extra RM paid in Airport Tax is also a RM lost in terms of ancillary revenue! They need every RM that is available to go to them...

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BC Tam...spot on as usual. TF is just blackmailing MAHB by threatening to drop routes. We already know that BKI-CGK is not making money. We also know Tony is smart - he is not interested in aviation in Malaysia alone. If he can make money from Manila or Saigon he will definitely move there!

What's the point of spending hundreds of millions to upgrade BKI when he still wants to use a piece of crap shed. Do you think Tony would want to queue for hours in a shitty little tin shed with no facilities? NO! I guess not.

 

Stop acting like a baby, Tony. Just get on with whatever you want to do and stop insulting our intelligence.

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