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Alif A. F.

Malaysia’s Kota Kinabalu Airport poised for renewed growth as Sabah-China market booms

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Kota Kinabalu Airport in east Malaysia should see a resumption of traffic growth in 2016 following two years of reductions. Malaysia’s second largest airport is quietly emerging as an international hub, fuelled by growth from mainland China.


Malaysia Airlines is opening a base at Kota Kinabalu in Apr-2016, which is expected to lead to nearly 30% traffic growth at the airport for the newly restructured flag carrier. AirAsia is also expanding at Kota Kinabalu in 2016, starting with a new daily service to Wuhan, its fourth Chinese route.


Kota Kinabalu also has seen the launch or resumption of service from three Chinese carriers in 2H2015. China is now the airport’s largest international market and will see further growth in 2016 driven by new flights from AirAsia, Malaysia Airlines and Chinese carriers.



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Kota Kinabalu Airport Part 2: to become second hub after Kuala Lumpur for the new Malaysia Airlines

24-Dec-2015


Malaysia Airlines is planning to expand at Kota Kinabalu after opening a new base at Malaysia’s second largest airport in Apr-2016. The restructured flag carrier will be basing six 737-800s at Kota Kinabalu year-round with one or two additional aircraft during certain periods to support new charter flights to China.





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Read the first part, too bad I cant read the second part. Quite a report and analysis for BKI. Previous efforts to promote BKI has a secondary hub has been... well, you know... we know. So, here's to hoping, good luck to CM.

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Read the first part, too bad I cant read the second part. Quite a report and analysis for BKI. Previous efforts to promote BKI has a secondary hub has been... well, you know... we know. So, here's to hoping, good luck to CM.

I think Airasia has a lot to do with the expansion of BKI. They kept going at it and tried out different routes. Finally they have found some success in their current mix of routes. That was why there was talk that Airasia X will also base one A330 at BKI at some point in the future. Lets hope that it will come true!

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The 2nd part suggests that previous attempts to make BKI hub by MH was unsustainable due to cost rather than demand. Previously, it said, crews for international flights from BKI were KL based and with fewer weekly frequencies, necessitated longer hotel stays at destination which added to the cost of BKI hub. - Hmm, but, I thought the crews were BKI based based on the previous plan? Maybe with lower cost related to contract reductions, renegotiation etc... the upcoming attempt is more feasible?

 

2nd part also mentions:

  • Evaluation of 737 MAX 9 and A321neoLR.
  • Re-timing of flights for both MAS and MASWings for better connections to KUL (with EK coming into the scene) and also to points at China/North Asia.
  • Potential to re-time flights for better connection between Australia & North Asia (though this is more of a suggestion from CAPA rather than MH itself).
  • Apparently, MH secures more charter flights from China than 180 flights stated in local media.
  • Potentially more domestic (logical points mentioned which are PEN, KBR, JHB) and international destinations (funnily the suggested new routes to ICN and HKG had been done before) at least after mid-2016.
  • 120 pilots and 200 cabin crews will be based at BKI by mid-2016.

 

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The 2nd part suggests that previous attempts to make BKI hub by MH was unsustainable due to .....

My gut feel would be not to place too high expectations on MH (or MAB in this upcoming adventure) - if it jadi then syabas, if not tapala :D

Remember the saying - once beaten twice shy; twice beaten never mind; thrice beaten - go and die :)

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CAPA reports are very thorough and detail. One should consider getting a subscription.

 

Just submitted details for trial. let's see what subscription rate will be given. I do enjoy reading CAPA, such a wealth of information. Part 2 of BKI is quite an interesting read. It's on the optimistic side the report, we shall see whether it gets it right.

 

On a side note... if BKI is going to aim for North Asia Market... our FR24 coverage for north of KK needs improving. It has always been the weak link. Appreciate if anyone has ideas for feeders with a good view of the sky towards the north. Anywhere! Tuaran, Kudat... anywhere. Just drop a PM if you think you can assist.

Edited by Eddy Liew

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I am just wondering, it is April 2016 now... and based on CAPA's analysis there should be a BKI base here now for MAB. Has that materialized? I haven't notice much changes really.

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I am just wondering, it is April 2016 now... and based on CAPA's analysis there should be a BKI base here now for MAB. Has that materialized? I haven't notice much changes really.

 

Most chinese travel agencies prefer to charter flights.

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AirAsia chops Bali-Kota Kinabalu route, calls for dedicated low-cost terminal in KK



KUALA LUMPUR (May 4): AirAsia Bhd said it is terminating its Bali-Kota Kinabalu route from June 23 due to “stagnant market growth”.


“We worked hard to make the route connecting Kota Kinabalu [KK] and Bali a success, offering continuous low fares in addition to substantial marketing and advertising initiatives.


“However, stagnant market growth has unfortunately impacted the operation of this route and revenues are insufficient to offset the costs,” said chief executive officer Aireen Omar.


She added that AirAsia’s operational costs have also increased “quite substantially” at the Kota Kinabalu International Airport’s Terminal 1.


The budget airline had been forced to move its operation from the airport’s Terminal 2 to Terminal 1 in December last year.



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Oh yeah, let's build more airports - KKIA2 :rolleyes:

Use KLIA2 as template, we all know what a success that is :D

Edited by BC Tam

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Oh yeah, let's build more airports - KKIA2 :rolleyes:

Use KLIA2 as template, we all know what a success that is :D

I think that they just want a bigger T2 or something like the cowshed LCCT, not a shopping mall.

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I think that they just want a bigger T2 or something like the cowshed LCCT, not a shopping mall.

Functional and efficiency is key to low operation cost.

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Functional and efficiency is key to low operation cost.

Airasia has always stated that they prefer to have one big departure hall with the pax walking to the planes rather than have small departure lounges at the gate. But MAHB wanted more retail space and created klia2.

 

As for BKI, I think they are just bitching that their costs are now the same as those for FSCs and it is harder for them to be competitive. They want something bigger than T2 and low cost - T1 isn't it.

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Airasia has always stated that they prefer to have one big departure hall with the pax walking to the planes rather than have small departure lounges at the gate. But MAHB wanted more retail space and created klia2.

 

As for BKI, I think they are just bitching that their costs are now the same as those for FSCs and it is harder for them to be competitive. They want something bigger than T2 and low cost - T1 isn't it.

From aerobridge to arrival Hall, klia2 has the most corners/turning and change of elevation/level in the world.

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Airasia has always stated that they prefer to have one big departure hall with the pax walking to the planes rather than have small departure lounges at the gate. But MAHB wanted more retail space and created klia2.

 

As for BKI, I think they are just bitching that their costs are now the same as those for FSCs and it is harder for them to be competitive. They want something bigger than T2 and low cost - T1 isn't it.

The european style LCCT seems to be a good model to follow

 

examples such as charles de gaulle terminal 2g

 

while it has no aerobridges, it's large waiting hall is big and comfortable with enough stores and food outlets.

 

My only complaint with 2G is it's poor connection with other terminals, but its still much better than KLIA's former LCCT

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Had enough complaints from Tony. Just get over it. He doesn't complain about having to use aero bridges in Singapore does he? What is his problem? Even with low oil prices, he complains. I hope it is all just his usual rhetoric. It will be a shame if AK moves it's HQ from Malaysia. Without it, KUL's aim of being an aviation hub is gone

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They should look at themselves. Have you seen the arrival time for both CGK and DPS flights.. Arriving late at CGK and departing very early in the morning. I rather take MH to transit at KL, arrive early afternoon and get along with my business. dont blame the so called T1 charges. I dont see their KUL - BKI affected too much. Instead they sent much bigger aircraft twice per day. If the charges are affecting them then all flights should be affected

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I think Tony is making a big deal over nothing. BKI-DPS was only 3 weekly. He is just trying to make an example of that route to try and push forward his agenda with regards to the LCCT (cowshed). I didn't believe anyone until I went there myself. It is a cowshed and we were queueing up all the way onto the apron!

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It will be a shame if AK moves it's HQ from Malaysia. Without it, KUL's aim of being an aviation hub is gone

Yes, I think they acknowledged that the LCCT was the main reason for AK's explosive growth. Since moving to klia2, they had to cut back capacity. Their days of explosive growth are over and they are worried that history might repeat itself at BKI.

 

More statements issued on this matter: http://www.freemalaysiatoday.com/category/nation/2016/05/09/airasia-boss-upset-at-termination-of-bali-kk-flights/

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But I don't see why they should cut back capacity because they are moving to a bigger terminal. They cut back a lot on Australian services because of oversupply (along with MH). im not sure what their rationale was for doing so but surely they can't blame being in a bigger terminal with more parking/apron space...

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