Naim 6 Report post Posted January 23, 2007 This bit by TF is tantalizing. ''The Malaysian government now wants to build a huge new terminal (at Kuala Lumpur International Airport) and it even looked at reopening the old airport (Sultan Abdul Aziz Shah Airport, or Subang) because it sees the business potential.'' Bangkok Post 23 Jan 2007 AirAsia boss tells AoT to choose one airport for budget carriers BOONSONG KOSITCHOTETHANA Toulouse, France _ The chief of AirAsia, Southeast Asia's largest budget airline group, has called on Thailand to either reopen the old Don Muang airport for both domestic and international flights or build a terminal dedicated to low-cost carriers (LCCs) at Suvarnabhumi airport. Tony Fernandes was commenting on a recent decision by Airports of Thailand Plc (AoT) to move only non-connecting domestic flights back to the old airport to relieve the congestion at Bangkok's new airport that opened on Sept 28 last year. The decision means that the airline's Thai subsidiary, Thai AirAsia, would need to split its operations between the two airports if it decided to shift domestic services to the 92-year-old site to take advantage of ample facilities and lower operating costs. In an interview following the delivery of the 16th Airbus A320 jet to AirAsia in France last week, Mr Fernandes said AoT's decision made no economic sense for AirAsia due to the prohibitive costs in operating at two bases. It's also confusing for passengers. ''My proposition is clear,'' he said. ''Either have a low-cost carrier terminal at Suvarnabhumi or reopen Don Muang for all commercial flights.'' However, Mr Fernandes has shown a preference for Don Muang. Thai AirAsia was among the Bangkok-based budget carriers that advocated staying at the old airport ahead of Suvarnabhumi's premature opening to avoid higher operating costs and passenger inconvenience at the new facility. But AoT's decision to allow only non-connecting domestic flights to go back to Don Muang was beyond the expectation of some low-cost carriers, especially Thai AirAsia, which was encouraged by AoT management's initial plan to build an LCC terminal at Suvarnabhumi. The budget terminal now appears to be on the back burner due to budget worries. The proposed LCC terminal, covering 40,000 sq m and capable of handling 17 million passengers a year, would cost about 1.4 billion baht and take two years to build. To avoid capital costs involved in building the new LCC terminal, Mr Fernandes suggested Thailand would be better off using Don Muang for all flights. ''Why build a new facility (LCC terminal) when you have one airport (Don Muang) already? What are you going to do with Don Muang? Why put all your eggs in one basket (Suvarnabhumi)?'' he questioned. ''It's no problem being at another airport,'' he said, noting that British Airways operates at London Heathrow while budget carrier Ryanair operates from Stansted. ''Everyone does not need to be together.'' Mr Fernandes warned that Thailand could lose out to countries in the region that are reopening old airports or building no-frills terminals to attract budget carriers and their customers. ''The Malaysian government now wants to build a huge new terminal (at Kuala Lumpur International Airport) and it even looked at reopening the old airport (Sultan Abdul Aziz Shah Airport, or Subang) because it sees the business potential,'' he said. Mr Fernandes also criticised AoT's plan to raise the landing/parking fee by 15% in April, and the international passenger service charges to 700 baht next month. He said it was illogical for both carriers and passengers. Thailand's landing and parking charges have begun to hurt even full service airlines, making them counter-productive, he said. ''There is a danger of thinking your product is strong and you can carry on charging whatever you want,'' he said. ''I think that is a wrong strategy because of the competition.'' http://www.bangkokpost.net/ -- Share this post Link to post Share on other sites
Kevin Teh 0 Report post Posted January 23, 2007 A bigger LCCT to be built? where? When there's so much work being carried out to upgrade the current LCCT, i guess they will expand the current site rather than shifting it to a totally new site. Re-opening of SZB for AK operation? Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted January 23, 2007 I think you are reading it too deep. TF meant that the M'sian Gov considerED (note the past tense) opening SZB in lieu of building an LCCT at KLIA. He was just mentioning the history of the thought process that they went through. Of course, you now what they have decided. He was comparing it with the situation in BKK, where AoT does not have funds to build a dedicated LCCT at BKK, hence the alternative is to go back to Don Muang (and he indicated that this is not a strange idea as M'sia considerED a similar move.) Share this post Link to post Share on other sites
Naim 6 Report post Posted January 23, 2007 I think you are reading it too deep. TF meant that the M'sian Gov considerED (note the past tense) opening SZB in lieu of building an LCCT at KLIA. He was just mentioning the history of the thought process that they went through. Of course, you now what they have decided. He was comparing it with the situation in BKK, where AoT does not have funds to build a dedicated LCCT at BKK, hence the alternative is to go back to Don Muang (and he indicated that this is not a strange idea as M'sia considerED a similar move.) I think you are right. Well, I'm not too keen on a SZB return since I plan to live near KLIA in a few years' time. +++ Share this post Link to post Share on other sites
Edwin Lau 0 Report post Posted January 23, 2007 even if they move AK back to SZB what would they do to the LCCT in KLIA? Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted January 23, 2007 even if they move AK back to SZB what would they do to the LCCT in KLIA? Warehouse/ cargo building, remember? Share this post Link to post Share on other sites
Sanjay Thaker 0 Report post Posted January 23, 2007 No way they're moving back to SZB especially now that the LCCT in KLIA is booming....we all know Mr. Tony...he makes his words work for him by qouting ...and talking bout others..intelligence at work Share this post Link to post Share on other sites
BC Tam 2 Report post Posted January 23, 2007 At the rate things are going, it is a possibility (albeit a distant possibility) MH will be told to shift operations to SZB, AK will take over MTB and LCCT will be converted to cargo warehouse (after KLIA Express extension is in place mind you) Share this post Link to post Share on other sites
Seth K 3 Report post Posted January 23, 2007 I wonder this flight information from KLIA website...... AK 0701 SZB 01:00:00 Share this post Link to post Share on other sites
Edwin Lau 0 Report post Posted January 23, 2007 is it true that they are moving MHs Domestic ops to LCCT???? I heard from a friend Share this post Link to post Share on other sites
Gavin Andrew David 6 Report post Posted January 23, 2007 Then what is KLIA going to do ? as it is its already so quiet Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted January 24, 2007 is it true that they are moving MHs Domestic ops to LCCT???? I heard from a friend Makes no sense based on existing LCCT infra if you think about MH's operations re. interlining and baggage transfers. Share this post Link to post Share on other sites