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Fernandes: Illogical to move us to KKIA

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I wonder, if MAB is to build a new LCCT, between the main terminal and the control tower (tere is some space there), what will the Datuk's excuse? Because I think his real intention is to make it so difficult for people to go to the main terminal and therefore has no choice but to use his airline, rather than have a choice.

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AK might be forgot that nowadays they are no longer dominating low cost flight in Malaysia alone. We have FY and BKI will be one of the FY's hub in the near future. If AK decided to cut some routes from BKI ie; BKI-JKT, might be FY will reinstate the route. MAHB no longer depending to AK alone to increase the passenger traffic in our airports.

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

Absolutely.

 

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.

From my previous trip to BKI:

 

180428_10150183659063709_571048708_8809788_6340712_n.jpg

 

180422_10150183659113709_571048708_8809790_4868524_n.jpg

 

It can be clearly seen that AK is only utilizing 10 check-in counters at T2. Counter 11 onwards are used by other airlines/unused.

 

AK only needs 10 check-in counters. Not enough check-in counters at T1? What are these?

 

168932_10150183659153709_571048708_8809792_4625710_n.jpg

 

180869_10150183659213709_571048708_8809793_446764_n.jpg

 

Besides, I believe AK is pushing for the use of self check-in machines. Check-in counters will be reduced slowly. TF's claim of the lack of counters at T1 is simply unacceptable.

 

KK jakarta is losing money and moving to main terminal will be even worse.

If you cannot make it work then just drop it. As simple as that.

 

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.

Honestly, a huge portion of passengers flying on AK are putting huge emphasis on the price of the ticket alone. Most of them will just see the big "RM0" or "RM0.09" promo ticket price and accept whatever airport tax charged to them. SIN for example, AK/FD/QZ passengers are paying $31 for airport tax, whereas MH/MI or even SQ passengers are only paying $28. Do passengers know they are paying extra airport tax flying AK/FD/QZ out of SIN? I did ask my friends; none of them even noticed this.

 

AK also urged MAHB to build more LCCT in other Malaysian airports such as in KCH, LGK and PEN

There is no need to waste taxpayer's money to build more LCCTs. The only airport in Malaysia that needs an LCCT is KUL.

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Honestly, a huge portion of passengers flying on AK are putting huge emphasis on the price of the ticket alone. Most of them will just see the big "RM0" or "RM0.09" promo ticket price and accept whatever airport tax charged to them. SIN for example, AK/FD/QZ passengers are paying $31 for airport tax, whereas MH/MI or even SQ passengers are only paying $28. Do passengers know they are paying extra airport tax flying AK/FD/QZ out of SIN? I did ask my friends; none of them even noticed this.

 

 

People may choose to pay less, even if it is less by just a few ringgit. But to cancel off flying altogether to avoid paying a few ringgit extra, I don't think so.

,

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Honestly, a huge portion of passengers flying on AK are putting huge emphasis on the price of the ticket alone. Most of them will just see the big "RM0" or "RM0.09" promo ticket price and accept whatever airport tax charged to them. SIN for example, AK/FD/QZ passengers are paying $31 for airport tax, whereas MH/MI or even SQ passengers are only paying $28. Do passengers know they are paying extra airport tax flying AK/FD/QZ out of SIN? I did ask my friends; none of them even noticed this.

A very clever piece of psycho game !

One is bound to have this 'I've struck lottery' euphoria after snagging these deals, and after spending time and effort filling in details on the booking page, the extra few dollars just seem so worth it anyway, that is if one ever notices the extra few dollars to start with :D

And the most powerful bit - if I don't hurry up and pay now, I may not get to see this good deal again and someone else will snatch it from me, online and in real time :lol:

We are but humans after all :D

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Well, I don't get sucked in into that kind of marketing anymore. I see emails with "Free Seats" from AK and I just delete them.

As for TF bitching about KKIA, I'm over it. He wants advantages that suit him and his airline at the cost to other people but himself. Sorry, sweetie, but life doesn't work like that. :finger:

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Today, a New Sabah Times report about this issue contains responses from the MOT. I have to support the ministry for that, and sorry Mr. Fernandez.

Edited by Alif A. F.

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Honestly, a huge portion of passengers flying on AK are putting huge emphasis on the price of the ticket alone. Most of them will just see the big "RM0" or "RM0.09" promo ticket price and accept whatever airport tax charged to them. SIN for example, AK/FD/QZ passengers are paying $31 for airport tax, whereas MH/MI or even SQ passengers are only paying $28. Do passengers know they are paying extra airport tax flying AK/FD/QZ out of SIN? I did ask my friends; none of them even noticed this.

Its no secret that the AirAsia group charges fees on top of tax in SIN. Airport tax is SGD28, and Jetstar charges exactly that.

 

But in Singapore, nobody really cares, because a law has been passed some years back that forced all airlines to only advertise all-inclusive fares. Meaning AK has not been doing any "Free Seats" sale in Singapore for a long long time (because if they did, they would have to absorb airport tax and allow pax to book flights for $0 all in!).

 

What they do advertise now, is "KL/Kuching/Jakarta from SGD31!", while on the next page, you see Jetstar advertising "KL from SGD15, Penang from SGD28!"... since you now know that both airlines cannot lie about their price, who would you book with? *Just fyi, in their promos, jetstar absorbs SG airport tax from its $15 fares, so its actually making a loss per flight just on airport tax alone!

People may choose to pay less, even if it is less by just a few ringgit. But to cancel off flying altogether to avoid paying a few ringgit extra, I don't think so.

Its not "just by a few ringgit". Moving from an LCCT to a regular terminal does not result in JUST an increase of airport tax to pax. The cost of rental of check-in counters, of airline office space, of baggage carousel and gate space (even without aerobridge) would increase too. All these increases add up and will have to be passed on to pax, increasing the raw ticket price, even by 'just a few RM', potentially decreases AK's revenue by 'just a few million RM', making some routes that were just breaking even or making small profits, no longer viable.

 

Also, let me give it to you from a budget traveler/backpackers point of view. Let say my air ticket used to cost RM10 + RM25 airport tax = RM35, but overnight your ticket now costs RM15 + RM51 airport tax = RM66. Thats almost a 100% increase! I would think twice about making a short 1 or 2 day getaway because of the huge percentage increase of my air ticket. The effect would be lesser on longer routes of course; with a higher fare, the percentage increase would be smaller. So this is likely to affect 1+hr short haul flights more than the ones to MFM, TPE, etc...

 

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.

I'm sure if they charged EXACTLY the same price for rental of EVERYTHING, charged the same airport tax and can provide more than just the 3 gates of A11-A13 for AK, TF would be delighted to move. Spanking new terminal plus easy connections, for the same price, who wouldn't want it? But theres obviously no way that MAHB can do that if they want to cover their own costs of building and operating the new T1. And if MAHB does decide to offer AK some 'special rates', I'm sure MH and other airlines would cry foul (and they should!).

 

Although, just wondering how many gates does AK use at BKI T2? Never been there, so I'm not sure, do they only base 3 planes there? If not, do the other gates at T1 (which have aerobridges) support boarding of aircraft by stairs? Because while the shortage of check-in counters may be total crap, I was wondering if 3 gates would be enough for AK?

 

I'm not the biggest fan of AK (I feel that AK isn't very cheap anymore and that they increases their prices because, well, they can. I prefer 3K for their T1/MTB, better fares & service.), and I do think that TF threatening to cut routes is indeed very childish (abit Ryanair-ish if you will), but you have to admit, some of his concerns are valid.

Edited by reyneo

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MOT refutes AirAsia CEO’s misgivings on relocation to KKIA Terminal 1

 

14th February, 2011

 

KOTA KINABALU: The Ministry of Transport says the benefits far outweigh the extra costs for low-cost airline, AirAsia, when it relocates to the new Kota Kinabalu International Airport terminal scheduled in mid June this year.

 

According to its deputy minister, Datuk Abdul Rahim Bakri, the RM1.6 billion new airport is built to cater for the needs of all airline companies including AirAsia and support their growth in the industry. He acknowledges the extra costs involved but believes quality service and infrastructure would justify the expenses.

 

“The airport has the facilities to meet the needs of all airlines including AirAsia. There are extra costs involved of course but we have built this airport to ensure the growth of the industry,” he told New Sabah Times yesterday.

 

He was asked to comment on AirAsia Group CEO Dato Sri Dr Tony Fernandez who had said on Friday that the airline was against the relocation, citing higher costs and charges as well as lack of facilities as among the reasons.

 

He told newsmen then that if the airline had to move out from its traditional home at Terminal 2 to KKIA Terminal 1, its expansion plan for Sabah which includes strengthening the existing routes and the opening of new markets from here all the way to North and South America, Australia, Korea, China and Japan would be affected. And the state could experience a significant drop in the number of passenger and tourist arrivals as a result.

 

But the AirAsia boss’ stand on the matter however came as a little surprise to Abdul Rahim who said that the airline had in fact signed a letter of undertaking with the Ministry of Transport a few months ago concerning its relocation to the KKIA Terminal 1.

 

In December 2010, Transport Minister Datuk Seri Kong Cho Ha had said that the ministry had an understanding with AirAsia to relocate the airline and other low-cost airlines once the upgrading project of the new terminal’s runway and resurfacing work gets completed.

 

And he disagreed with Fernandez that KKIA would be congested during peak seasons.

 

“The new airport is designed for fourteen million passengers. Now we have five million. So the question about congestion does not arise. Even after ten years I don’t think we can reach its maximum capacity. So there’s plenty of space,” he explained.

 

On Fernandez’s concern that the relocation would cost passengers to pay RM51 of Passenger Service Charge (PSC) from what it is now at RM25 at the low-cost terminal, the deputy minister insisted the “good facilities” at KKIA would justify the extra cost. He explained the RM51 applies to passengers going abroad while domestic ones only pay RM9.

 

He said Malaysia airports charge a much lower PSC rate as compared with airports in other countries.

 

He further explained that cost on airport facilities such as the aerobridge would not hurt the airline for it is only about RM85 or RM0.50 per person on board an aircraft that carries about 100 passengers.

 

“After all, it’s like paying RM0.50 sen for convenience. And it’s OKU (individuals with disability) friendly,” he added.

 

Working the maths further down, he said airlines would benefit in terms of smoother transfers and connectivity, and in AirAsia’s case, passengers making a connection flight from other airlines could save money and time.

 

“Say for example, passengers who travel to Shenzhen (in China) on AirAsia could conveniently transfer if they fly here with another airline. They don’t have to take a taxi to go to Terminal 2 and lose precious time due to traffic congestion,” he said.

 

Fernandez said Friday that AirAsia had done a lot for East Malaysia particularly Sabah which he considered as the airline’s home in many ways and now wants to do a lot more. For this reason he called on the government to allow the airline to remain at Terminal 2.

 

Abdul Rahim responded saying that the ministry would leave it to the cabinet to decide.

 

In a statement issued Friday, AirAsia announced that it had carried over 32 million guests from all over into East Malaysia so far.

 

Meanwhile, Tourism, Culture and Environment Minister Datuk Masidi Manjun, when contacted to comment about the possible drop in the number of tourist arrivals to the state as claimed by Fernandez as a result of the relocation, said that he needed to gather more facts concerning the matter and would only respond in due time.

 

 

MOT reply to AirAsia

 

If I'm not mistaken, Terminal 2 have 5 gates in total with 9 parking bays (including VIP and logistic parking bays)?

It was stated on 2009 Daily Express that the handling capacity of Terminal 2 is 2 million passengers although I thought it was build to handle 3 million. Some guy in the article claimed that the handling capacity on 2009 is 2.1 million passengers and it is over the limit and they are asking for an extension of the terminal.

 

Island C and D counter in Terminal 1 is equipped with a total of 32 check-in counters which translates into 16 check-in counters for each island. He can have both if he thinks there are not enough counters to be utilized by AirAsia.

 

What I think he wants is like what reyneo said earlier, MAHB charged the same amount of airport tax to AirAsia if they are to be relocated back to Terminal 1. Provide AirAsia enough gates, parking bays and check-in counters as we request. All other cost in Terminal 1 should be charged the same as Terminal 2. If MAHB could agree with him on this terms, he would willingly shift over right now.

Edited by benz

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Just for argument sake I just checked on Firefly the cheapest return BKI - KUL was RM59 one way including tax.

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About the price comparison, shifting AK's operation from T2 to T1 will result in the airfares of domestic ticket like BKI-KUL to be increased by RM 3 (airport tax increases from RM 6 to RM 9) and international ticket like BKI-SIN to be increased by RM 26 (airport tax increases from RM 25 to RM 51). This price increase is more likely to effect AK's international routes from BKI than the domestic ones.

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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.

 

 

 

I dont understand what is the joke on Firefly? Are you trying to change the topic or what? We're walking about terminal relocation here. The AUTHORITY issue order to move, you move. If you dont follow the rules, you either go to jail or pay hefty fines, which 'some people' get away too many times

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Also, let me give it to you from a budget traveler/backpackers point of view. Let say my air ticket used to cost RM10 + RM25 airport tax = RM35, but overnight your ticket now costs RM15 + RM51 airport tax = RM66. Thats almost a 100% increase! I would think twice about making a short 1 or 2 day getaway because of the huge percentage increase of my air ticket.

Perhaps you can also look at it from a bigger perspective ?

What percentage would that increase of rm31 be over total expected expenditure of your "1 or 2 day getaway" ? :)

 

 

Talking of jokers :D

Untitled-Scanned-03.jpg

(scanned from our local daily this morning)

Edited by BC Tam

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Wow, some guys down south took this issue as an opportunity. Those policy makers at KKIA need to rethink their strategy, otherwise the airport and the city will lose business.

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If the orange coloured one really knows how to ruffle feathers, it should now submit applications to fly all the routes ex-BKI that AK currently does, drum up some PR blitz about taking up perceived slack upcoming due to Dato TF's threat of downsizing at BKI and do the usual bit about 'national service' and all that :D

Plus, they must stress that they are ALREADY operating out of T1 and see no justification for existence of BKI's T2, very in line with (BN) gahmen's vision to develop BKI's 'secondary hub' status and concurrently propel Sabah's tourism industry to the next quantum increase ........ :D

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If the orange coloured one really knows how to ruffle feathers, it should now submit applications to fly all the routes ex-BKI that AK currently does, drum up some PR blitz about taking up perceived slack upcoming due to Dato TF's threat of downsizing at BKI and do the usual bit about 'national service' and all that :D

Plus, they must stress that they are ALREADY operating out of T1 and see no justification for existence of BKI's T2, very in line with (BN) gahmen's vision to develop BKI's 'secondary hub' status and concurrently propel Sabah's tourism industry to the next quantum increase ........ :D

I think the CEO of FY prefers to do things quietly - slow and steady. Currently their limiting factor is the lack of available aircraft.

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I think the CEO of FY prefers to do things quietly - slow and steady

Steady Eddy eh ? :)

You're right, have they actually placed orders for the quite extensive fleet of 738's they said they will need and which have been categorically stated will be separate and additional to MH's already confirmed order for same birds ?

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I'd love to see AK downsize their operations out of BKI. FY will just step right in. TF's threats are empty and he knows it. Like everything else, he's just seeing how much he can get away with. Move to T1 or get out. FY's waiting... :finger:

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We've been focussing on FireFly giving AK a run for its money

Totally forgot about our local MasWing - whom if I remember correctly, had also expressed ambitions for regional operations :)

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We've been focussing on FireFly giving AK a run for its money

Totally forgot about our local MasWing - whom if I remember correctly, had also expressed ambitions for regional operations :)

Frankly speaking, I don't think MASWings nor Firefly will "compete" with MH, should AK move out of BKI.

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We've been focussing on FireFly giving AK a run for its money

Totally forgot about our local MasWing - whom if I remember correctly, had also expressed ambitions for regional operations :)

 

Don't really see Maswing competing directly with AK in hot routes in the near future, or whether they should.. Maswing is subsidized. I personally feel they should just focus on community service in East Malaysia.

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Heh heh, my mentioning of MasWing was in context of 'feather ruffling' exercise - adding spice to the recipe, rather than realistically go in competition with AK

Not much chance of them doing anything more than the 'social obligation' flights really, not when they are still dependent on financial crutches :)

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Talking of jokers :D

Untitled-Scanned-03.jpg

(scanned from our local daily this morning)

 

Plenty of jokers around, especially when election looms.

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Story by MUGUNTAN VANAR

vmugu@thestar.com.my | Feb 15, 2011

‘AirAsia must sort out problem’

 

KOTA KINABALU: AirAsia will have to discuss with airport officials its reluctance to move out of the low-cost terminal and start operating at the international terminal at Kota Kinabalu International Airport in June.

 

The Sabah government has no say in the matter and hopes that AirAsia will not drag it into the airline’s bid to stay put at the low-cost terminal more popularly known as Terminal 2.

 

State Tourism, Environment and Culture Minister Datuk Masidi Manjun said: “It is up to AirAsia to work out its problem with Malaysia Airports Berhad and the Federal Government as they have the final say on how and where airlines should operate within KKIA.”

 

AirAsia chief executive officer Datuk Tony Fernandes, during a special press conference for the media from Sabah and Sarawak on Friday, said the airline was not keen to move out of the Terminal 2 as its costs would increase and in turn force it to reduce flights, causing Sabah to lose some one million tourists.

 

Fernandes said the state government had been cooperative but an official of Sabah Tourism Board (STB) was among those causing some problems in the airline’s bid to stay on at Terminal 2.

 

Responding to Fernandes’ aspersions against the STB official, Masidi said: “STB does not own or operate airports. In this case, KKIA is owned and operated by MAB, a government -linked company under the purview of Transport Ministry.

 

“They decide how airlines ope-rate at their airport, so for him (Fernandes) to suggest otherwise is not just a misrepresentation of the facts but unfairly dragging STB into the problem,” Masidi added.

 

Deputy Transport Minister Datuk Abdul Rahim Bakri said his ministry was surprised by Fernandes’ stand on the matter as AirAsia had signed a letter of undertaking with the ministry concerning the relocation to Teminal 1.

 

Rahim said the RM1.6bil newly upgraded airport was built to cater to the needs of airline companies’ growth.

 

There were extra costs but these would be justified with improved quality of service, he added.

 

On Fernandes’ concern that the relocation would cost passengers to pay RM51 for the Passenger Service Charge (PSC) from the current RM25 at the low-cost terminal, Rahim said the RM51 applied to passengers going abroad while domestic travellers would only pay RM9.

 

The low cost terminal will be converted for cargo handling.

 

from here

 

Sorry Dato TF, your sob story not selling very well

Not yet anyway

 

And those statistics coming out (eg. would have cost AK average of rm0.50 per pax should they have decided to utilize aerobridges where available) are not exactly flattering either

But then again, remember there are lies, damned lies and statistics :p

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So, if AK doesn't move out of T2, there won't be a proper cargo terminal at KKIA then. Well, that's just great, isn't it? TF wants to maximise his profits while stifling the growth of cargo at KK, which would benefit the Sabah economy even more than tourism. Sounds pretty selfish to me! <_>

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