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'Absurd' that Malaysia does not have LCCTs, says AirAsia chief Tony Fernandes


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#1 flee

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Posted 12 September 2019 - 10:41 AM

KUALA LUMPUR (Sept 11): AirAsia Group Bhd co-founder and group chief executive officer Tan Sri Tony Fernandes says it is "absurd" that low-cost carriers (LCCs) dominate the Malaysian aviation market but the country does not have dedicated low-cost carrier terminals (LCCTs).

Fernandes pointed out that in Malaysia, LCCs account for 57% and 51% of domestic and international flights respectively.

Globally, LCCs have also expanded by 8% last year, close to triple the 3% growth of full-service carriers. This growth is even more impressive in Asia, especially Southeast Asia, where LCCs are growing by 16% and now account for 50% of air travel, he said.

More:
https://www.theedgem...-tony-fernandes

https://www.linkedin...le_article_view

https://www.centrair.jp/en/t2/

#2 Mohd Suhaimi Fariz

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Posted 12 September 2019 - 10:51 AM

Low Cost Carrier terminal doesn't mean a low cost terminal for the LCC.

 

Maybe he should learn the distinction.



#3 JuliusWong

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Posted 12 September 2019 - 10:53 AM

Is there a country in South East Asia with dedicated LCCT? I know only of Terminal 2F of CGK houses all LCC in Indonesia. The previous LCCT we used to have was really good in its purpose. Old and rugged! 



#4 flee

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Posted 12 September 2019 - 11:12 AM

Is there a country in South East Asia with dedicated LCCT? I know only of Terminal 2F of CGK houses all LCC in Indonesia. The previous LCCT we used to have was really good in its purpose. Old and rugged!

Do read TF's Linked In post - he has highlighted some of the countries that have LCCTs.

Yes, previous LCCT served its purpose until it reached design capacity. Even then, I did not feel as uncomfortable as it is at klia2 now because the departure hall was large, not like the tiny gate lounges that we now have at klia2. It can be quite cramped on flights that are full.

#5 JuliusWong

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Posted 12 September 2019 - 11:40 AM

Do read TF's Linked In post - he has highlighted some of the countries that have LCCTs.

Yes, previous LCCT served its purpose until it reached design capacity. Even then, I did not feel as uncomfortable as it is at klia2 now because the departure hall was large, not like the tiny gate lounges that we now have at klia2. It can be quite cramped on flights that are full.

Yes, I read it hence I am asking, for now only CGK has a dedicated terminal for LCC in South East Asia. As for Utapao it is in bidding stage. Singapore demolished their Budget Terminal and has no replacement. Malaysia built an extravagant KLIA2 Next-Gen Hub to replace the old LCCT. Till now we don't have a true dedicated airport or terminal for LCC.

 

Give me back my LCCT!



#6 flee

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Posted 12 September 2019 - 11:51 AM

I dunno - I think DMK is also for LCCs, isn't it? He highlighted Utapao because Thailand is investing in LCCTs and Malaysia isn't. So when they are built, Malaysia will be left behind. I can foresee Airasia expanding its Thai operations and become bigger than Malaysia Airasia if they get a good value proposition over there.

Frankly I do not think it is wise for TF to just keep badgering MAHB - its a waste of time.

Maybe he should start thinking of starting an airport development company and build LCCTs himself!

#7 JuliusWong

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Posted 12 September 2019 - 12:26 PM

I dunno - I think DMK is also for LCCs, isn't it? He highlighted Utapao because Thailand is investing in LCCTs and Malaysia isn't. So when they are built, Malaysia will be left behind. I can foresee Airasia expanding its Thai operations and become bigger than Malaysia Airasia if they get a good value proposition over there.

Frankly I do not think it is wise for TF to just keep badgering MAHB - its a waste of time.

Maybe he should start thinking of starting an airport development company and build LCCTs himself!

Well, he did want to build his LCCT at Labu with Sime Darby, but MAHB shot down the idea. The air navigation, traffic control etc is very much reliant on them, hence they have the final say. The whole KLIA East drama ensued. Lastly, we have a grandeur KLIA2, which to date I am still confuse it is a dedicated airport for LCC or part of KLIA terminals??

 

Yes, DMK is dedicated airport for LCC, but also charter airlines and non connecting airlines. This was done to ease the congestion at BKK which reached its brim less than five years since its opening. DMK can collectively handles 48 millions passenger by 2024. As a result, the third terminal now is being expanded. Thailand is in their own league now. Utapao International Airport will further fuel their growth. Malaysia has been left behind since DMK re-opened, we can't fight them at all in terms of tourist arrival number and Thailand has so much offer than Malaysia. Tourists have better bang for their bucks.

 

Hence AirAsia Group is investing heavily in their Thai subsidiaries. Both new A339neo went to them, with more new A320neo, A321neo and A330neo deliveries mostly for them. Malaysia is on backburner now. 

 

Sadly but it has happened.


Edited by JuliusWong, 12 September 2019 - 12:39 PM.


#8 Izanee

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Posted 12 September 2019 - 01:24 PM

I dont know that Thailand is so much better than Malaysia - we are not doing the promotions enough. Tourism ministry has been squandering their money on other things. If you compare with the early 2000s, there is hardly any promotion in U.K. and Europe. This is where you get the higher yielding tourists. Even now Philippines and Vietnam are so much better at tourism promotion on social media.

#9 jahur

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Posted 12 September 2019 - 01:30 PM

Lion group has also dedicated more funds for their thai unit than malindo. Population on msia is not sustainable for 3 way fight. Our gov rather promotes tourism to china than europe nowadays.

#10 Waiping

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Posted 12 September 2019 - 04:15 PM

Ok, just a few sharing.  Obviously been to LCCT during the heydays.

 

Was waiting for my flight to SGN.  Stuck around the main pillar in the middle of the departure hall as everyone was trying to recharge their battery using the wall outlet, which was already with the internal wire exposed.  Then as one of the user try to move his phone, spark flew out and everyone's charging stopped.  Nope, out of service.  Move on fellas.

 

Was waiting for my pickup at LCCT and sat at NOOODLES.  Someone just finished their meal and left the utensils there.  From a few feet away I can see somehow part of the utensils were little with black bean.  I thought who would have brought their own.  I soon found out those were actually very hungry flies, and I assume they were really hungry judging from their long period of static state.  From then on it was "NO-DLES" for me.

 

No lah, not the shed please.



#11 flee

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Posted 12 September 2019 - 05:58 PM

I dont know that Thailand is so much better than Malaysia - we are not doing the promotions enough. Tourism ministry has been squandering their money on other things. If you compare with the early 2000s, there is hardly any promotion in U.K. and Europe. This is where you get the higher yielding tourists. Even now Philippines and Vietnam are so much better at tourism promotion on social media.

Yes, MAHB and the other government agencies have failed to do their duty - so we are what we are today. Another example is their motor industry - Malaysia started its motor industry way before Thailand. Now Thailand is way ahead and Vietnam is also ahead.

 

To be fair, Tourism Ministry did quite a good job earlier on - all those visit Malaysia years in the past did bring tourists in. However in the last 5 years or so, inbound tourism has begun to plateau and decline.


Hence AirAsia Group is investing heavily in their Thai subsidiaries. Both new A339neo went to them, with more new A320neo, A321neo and A330neo deliveries mostly for them. Malaysia is on backburner now. 

 

Sadly but it has happened.

Yes too many self imposed barriers for Malaysia to advance.

 

Thai Airasia/Airasia X need those planes more than Malaysia. So they are getting them as they can make use of them better.


Edited by flee, 12 September 2019 - 06:06 PM.


#12 BC Tam

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Posted 12 September 2019 - 09:10 PM

Frankly I do not think it is wise for TF to just keep badgering MAHB - its a waste of time.

Yes, hope he puts more attention to recuperation from dengue fever



#13 Pall

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Posted 14 September 2019 - 11:18 AM

Its not that the whole Tourism-Transportation(Airline) ecosystem in Malaysia is poorly managed. Just that others around this region are doing better. There are some areas in which both Ministries are doing a good job. If not AirAsia would not have been where they are today without the support from MOT, MAHB and the other Govt stakeholders. Maybe TF should work together rather than having his infamous bash first talk later policy. Sometimes I kinda feel its down to free publicity for AK having all this news popping out in news feed every now and then. I still see AirAsia growing every single day even with all the "limitation" as they claim to have. Yes indeed KLIA2 could be better but I'm kinda getting bored with AK constantly pointing fingers everywhere. 



#14 KK Lee

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Posted 14 September 2019 - 12:26 PM

Its not that the whole Tourism-Transportation(Airline) ecosystem in Malaysia is poorly managed. Just that others around this region are doing better. There are some areas in which both Ministries are doing a good job. If not AirAsia would not have been where they are today without the support from MOT, MAHB and the other Govt stakeholders. Maybe TF should work together rather than having his infamous bash first talk later policy. Sometimes I kinda feel its down to free publicity for AK having all this news popping out in news feed every now and then. I still see AirAsia growing every single day even with all the "limitation" as they claim to have. Yes indeed KLIA2 could be better but I'm kinda getting bored with AK constantly pointing fingers everywhere. 

 

Believe ak had tried to work with relevant parties without success before tf resorted to social media.



#15 Chris Tan

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Posted 14 September 2019 - 12:39 PM

Believe ak had tried to work with relevant parties without success before tf resorted to social media.

Having a sense of entitlement is not the same as working with relevant parties.

#16 Pall

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Posted 14 September 2019 - 03:01 PM

 

Believe ak had tried to work with relevant parties without success before tf resorted to social media.

 

Makes me wonder why its working with everyone else besides AK. Don't see OD or MH complaining, and why would the government stop any companies from making it big. If its one entity that made AK where it is right now that should be thanked is the Govt, be it with BN or PH. Seems like they dont work well with either side of the political coin. Maybe its time they actually sort other means then taking it down to the social media. To me its just free publicity or marketing tactics to put AKs name on the media every now and then. 

 

 

Having a sense of entitlement is not the same as working with relevant parties.

 

Indeed right, my point exactly. 



#17 Izanee

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Posted 14 September 2019 - 03:33 PM

Even when TF put jibby on his plane just before the elections, and then had to shamefully backtrack after BN lost - the current government has allowed him to thrive. The whole point of it is that he should have made KUL the connecting hub for the whole Air Asia group. It would have worked. Even channel passengers from Europe via KUL elsewhere. But he wanted to control everything, everywhere ....so now hes neglecting his base airline.

Sad story. Even with his Labu labi airport, he would have done the same.

#18 KK Lee

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Posted 14 September 2019 - 04:40 PM

 

Makes me wonder why its working with everyone else besides AK. Don't see OD or MH complaining, and why would the government stop any companies from making it big. If its one entity that made AK where it is right now that should be thanked is the Govt, be it with BN or PH. Seems like they dont work well with either side of the political coin. Maybe its time they actually sort other means then taking it down to the social media. To me its just free publicity or marketing tactics to put AKs name on the media every now and then. 

 

 

 

Indeed right, my point exactly. 

 

ak/tf are practitioner of blue ocean strategy and gomen is normally slow to change or adopt. hence, the rant.



#19 Mohd Suhaimi Fariz

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Posted 15 September 2019 - 09:18 AM

Sometimes I kinda feel its down to free publicity for AK having all this news popping out in news feed every now and then. I still see AirAsia growing every single day even with all the "limitation" as they claim to have. Yes indeed KLIA2 could be better but I'm kinda getting bored with AK constantly pointing fingers everywhere. 

 

TF subscribes to the Michael O'Leary school of publicity. Funny thing is, now that Ryanair is having difficulties O'Leary has learnt to keep himself from shooting s#1t out of his mouth. Would do TF well to follow MOL's example.

 

 

ak/tf are practitioner of blue ocean strategy and gomen is normally slow to change or adopt. hence, the rant.

 

:rofl:

 

It's not a question about gomen being slow. It's about TF wanting his way and only his way, without realizing that the gomen can ask him to go take a hike on the highway.

Again, it's all about his own tongkats!


Edited by Mohd Suhaimi Fariz, 15 September 2019 - 09:19 AM.


#20 KK Lee

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Posted 15 September 2019 - 01:49 PM

 
TF subscribes to the Michael O'Leary school of publicity. Funny thing is, now that Ryanair is having difficulties O'Leary has learnt to keep himself from shooting s#1t out of his mouth. Would do TF well to follow MOL's example.
 
 
:rofl:
 
It's not a question about gomen being slow. It's about TF wanting his way and only his way, without realizing that the gomen can ask him to go take a hike on the highway.

Again, it's all about his own tongkats!


There is no doubt the gomen could even tell him to tfk on the highway. In current disruption economy, business and country could be left out if reluctant or slow to change or adapt.




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