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AirAsia Renamed KLIA2 to LCCT2

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AirAsia to promote KLIA2 as Low-Cost Carrier Terminal 2

 

SEPANG: AirAsia, which accounts for the biggest share of passenger traffic at the RM4bil KLIA2, plans to launch a campaign to promote the budget terminal as Low-Cost Carrier Terminal 2 (LCCT2).
The low-cost carrier said in a statement that this would reinforce Kuala Lumpur’s position as the leading low-cost gateway to Asia and beyond.
AirAsia Group chief executive officer Tan Sri Tony Fernandes said in the statement: “As we grow towards becoming the Dubai of Asia, we want the world to know that the best value fares are here in Malaysia.
“To me, KLIA2 doesn’t mean anything. LCCT2, on the other hand, is synonymous with low-cost. It is a brand that we built up together with MAHB (Malaysia Airports Holdings Bhd) and it shouldn’t go to waste. I urge MAHB to stop denying the fact that it is a low-cost hub.”
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I've never understood the rationale behind the name "KLIA2". It's not an airport in its own right, as the name implies, so why can't they just call it Terminal 2?

 

You won't find names like JFK8, HKIA2 or Changi1, so why KLIA2?

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We have very funny naming conventions, like our roads.

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MAHB quashes AirAsia’s LCCT2 campaign plan

 

KUALA LUMPUR: Malaysia Airports Holdings Bhd says klia2 is neither an independent airport nor a hub but the KL International Airport’s (KLIA) second terminal and is a crucial component of the KLIA hub.
“Although klia2 is currently mainly used by low-cost carriers, it is designed to cater to all types of airlines as it supports the overall KLIA capacity,” the airport operator said in clarifying its position in regard to AirAsia’s plan to promote klia2 as LCCT2 and promoting it as a low-cost hub.
Earlier today, AirAsia’s Group Chief Executive Officer Tony Fernandes announced that the airline would launch a campaign to promote klia2 as LCCT2 (Low-Cost Carrier Terminal 2), reinforcing Kuala Lumpur’s position as the leading low-cost gateway to Asia and beyond.
MAHB also said klia2 is the registered name of the terminal under the International Air Transport Association and calling it by any other name would only serve to mislead and cause confusion to the public and passengers.
Elaborating further, MAHB said under its five-year business plan – Runway to Success 2020 – it is working to position KLIA as an integrated hub that would provide seamless connectivity between airlines, whether full service, hybrid or low-cost.
This is similar to other successful international hubs which rely on all types of airlines operating within a single airport system.
MAHB cited Dubai, Amsterdam, Istanbul, Hong Kong and Singapore as examples of formidable hubs.
In the case of Dubai and Singapore, low-cost traffic component makes up 26% of their total traffic. However, this percentage represents a segment of a much larger volume of international traffic compared with klia2.
“Successful hubs are measured by the extent of the international connectivity and it is evident that this can only be achieved by leveraging on full service carrier network and alliances as well,” it said.
When klia2 was envisaged, it was meant to enhance KLIA’s connectivity and elevate its position as a competitive hub within the region.
The KLIA Main Terminal is connected worldwide to 1,026 destinations through 166 airlines, thus, klia2 is in good position to leverage this ready connectivity.
By virtue of this, it is crucial to view and position both the KLIA Main Terminal and klia2 together as the KUL Hub or an integrated airport system, instead of taking klia2 as an independent low-cost hub.
MAHB manages and operates 39 airports in Malaysia and one international airport in Istanbul, Turkey.
The 39 airports in Malaysia comprise five international airports, 16 domestic airports and 18 Short Take-Off and Landing Ports (STOLports).
It also provides airport management and technical services for the development, operation, maintenance and management of overseas international airports.
– BERNAMA
Edited by flee

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PETALING JAYA: AirAsia’s Tony Fernandes has expressed regret that the group could not work together with Malaysia Airports Holdings Berhad (MAHB) to realise klia2’s potential as the low-cost carrier hub of Asia.
In an interview with New Straits Times, Fernandes, who is AirAsia group chief executive officer, gave the different priorities set by AirAsia and MAHB as the fundamental reason for tension between the two firms.
He added that MAHB also did not understand the low-cost business.
Fernandes, who has previously said that AirAsia would embark on a campaign to promote klia2 as LCCT2 or the low-cost terminal, said it was the perfect time to re-brand the airport due to the slowing global economy in China and Asean and weaker ringgit.
“The terminal is boring … There is no energy, no excitement, there is nothing … During the peak period, it is a nightmare because of the way the airport is designed,” Fernandes was quoted as saying.
He also questioned the structural defects such as cracks and water ponding in apron bays where aircraft are parked.
Fernandes also revealed that AirAsia was engaged in talks with Changi airport in Singapore and Don Muang airport in Thailand to build low-cost terminals in those countries.
“I’m thinking, why doesn’t this airport (MAHB) support us more? It’s a volume game. If I can take this from 24 million to 50 million (passengers per annum), who wins?”
I was fighting for AirAsia, says Fernandes

 

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this man will never think of anything else except profitting his company, he couldnt care less about passengers comfort or convenience and his ideal view of low cost concept is where pax still have to climb the stairs to board the plane. Notwitstanding the aforesaid, MAHB really needs to install those travelators in KLIA 2 soonest.

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TF is even impressed by upcoming Changi T4 which is hardly envisioned by him as low cost. Perhaps, it is substance=style?

Edited by Alif A. F.

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The deal is he is trying to make the cost at his base in home country as low as possible as he knows he has no control over those overseas airport. If you can get the cost at your home base to lowest/ minimal, at least it will compensate a bit for the high cost at overseas. The issue is MAHB has been dragging its leg to approve KLIA2 last time, by the time it was done, klia2 was riddled with multiple issue that affect AK Group daily operation. Efficiency and effectiveness culture does not assist in Malaysia working culture. Let's not get started with LCCT overcrowding. Back then TF has been making a lot of noise the so-called half baked expansion effort by DoT was short coming and AirAsia (during their explosive growth years) would outgrew the expansion in three times. True enough it exceeded by 20%-25% the designated capacity.

 

A lot of people complained about walking long distance in LCCT, but this is how most LCCT in the world operates, Sydney and Dublin are good example. Granted budget carrier copcept was a new thing in Malaysia and the region 15 years ago. However, it has been around the world for ages. FR, U2, Wizz, Vueling and almost every budget carrier uses stairs for boarding. The lack of seats for people to rest/ sit is MAHB problem. AirAsia is an airline, and only responsible to transport you from point A to point B at most minimum cost. Anything else is extra. We should be glad they don't charge for using overhead cabin or under seat storage.

 

He is in the business to make money, not charity. You are given choices to choose, so choose wisely.

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TF is even impressed by upcoming Changi T4 which is hardly envisioned by him as low cost. Perhaps, it is substance=style?

Sometimes, not all costs are in dollars and cents.

 

Clearing passengers, cargo and bags quickly and being able to turn around an A320 in 25 minutes means a lot. Any delay will add to costs - and this type of cost is a hidden cost.

 

Singapore is a model of efficiency - it can handle more pax with two runways than KLIA can with three. That helps to keep costs down too.

AirAsia frustrated with MAHB’s mismanagement

 

http://www.freemalaysiatoday.com/category/nation/2016/06/21/airasia-frustrated-with-mahbs-mismanagement/

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All I can say is that one should always look beyond what Tony/AirAsia says and try to actually understand what they are getting at :)

 

Tony/AirAsia are masters at this.

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All I can say is that one should always look beyond what Tony/AirAsia says and try to actually understand what they are getting at :)

 

Tony/AirAsia are masters at this.

If Airasia says that 98% of flights out of klia2/LCCT2 are mounted by Airasia, has MAHB considered what will happen if they collapse because the airport has become impossible for them? What impact will that collapse have on MAHB?

 

Airasia could also start to move out of Malaysia if costs are not to their liking - they are here to make money. If MAHB is not willing to share the same objectives (i.e. making money for MAHB shareholders), then would MAHB be surprised if they relocate their HQ elsewhere? I know, MAHB does not have that kiasu attitude that competitive businesses posses. But think about it - or maybe MAHB does not care. If the airport makes losses, Khazanah will bail them out....

The deal is he is trying to make the cost at his base in home country as low as possible as he knows he has no control over those overseas airport. If you can get the cost at your home base to lowest/ minimal, at least it will compensate a bit for the high cost at overseas.

Very good point - they say that charity begins at home.

 

Likewise, in order to show the world that you are lowest cost, you have to show it at your home airport first before you lecture other airports of the advantages of having low cost airports.

 

Also if you call the airport your HQ, this should be where you have most of your flights operating from. Costs would have to be tightly controlled as the volume of flights is huge. At airports where Airasia does not have so many flights, it is not so bad because the total costs would not amount to that much.

 

Airasia are lucky in that Don Mueang is a genuine low cost airport. That is how it enables Thai Airasia and Thai Airasia X to progress well.

 

I think what TF is planning now is for a few years ahead.

 

Many people don't have the vision to see beyond tomorrow - some of them are at MAHB. Lets hope they won't be so "surprised" if TF and Airasia move their HQ to another ASEAN country.

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Errr..didnt they already pull that stunt and moved to Jakarta? ... And quietly moved back?

 

One thing for sure, the Msian domestic market is a cash cow for Airasia. It is virtually a monopoly being the sole real LCC in the market. So, no, I dont think Airasia will vacate its prime position in the Msian market.

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If Airasia says that 98% of flights out of klia2/LCCT2 are mounted by Airasia, has MAHB considered what will happen if they collapse because the airport has become impossible for them? What impact will that collapse have on MAHB?

 

Airasia could also start to move out of Malaysia if costs are not to their liking - they are here to make money. If MAHB is not willing to share the same objectives (i.e. making money for MAHB shareholders), then would MAHB be surprised if they relocate their HQ elsewhere? I know, MAHB does not have that kiasu attitude that competitive businesses posses. But think about it - or maybe MAHB does not care. If the airport makes losses, Khazanah will bail them out....

Very good point - they say that charity begins at home.

 

Likewise, in order to show the world that you are lowest cost, you have to show it at your home airport first before you lecture other airports of the advantages of having low cost airports.

 

Also if you call the airport your HQ, this should be where you have most of your flights operating from. Costs would have to be tightly controlled as the volume of flights is huge. At airports where Airasia does not have so many flights, it is not so bad because the total costs would not amount to that much.

 

Airasia are lucky in that Don Mueang is a genuine low cost airport. That is how it enables Thai Airasia and Thai Airasia X to progress well.

 

I think what TF is planning now is for a few years ahead.

 

Many people don't have the vision to see beyond tomorrow - some of them are at MAHB. Lets hope they won't be so "surprised" if TF and Airasia move their HQ to another ASEAN country.

 

Whilst I agree that Tony/AirAsia have their points of contention vs MAHB, again, your post shows just how good a master he is at the game :)

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AirAsia goes ahead with LCCT2 rebranding

 

 

SEPANG: In a defiant move against its landlord, Malaysia Airports Holdings Berhad (MAHB), AirAsia on Tuesday said it would start listing its main hub at KLIA2 as LCCT2 on websites, tickets and promotional materials.

Its chief executive officer Aireen Omar said the group would even bear the cost to rebrand their base after AirAsia's original home of Low-Cost Carrier Terminal.

Last week, MAHB had shot down AirAsia's campaign plan to rebrand KLIA2 as LCCT2, saying that it was not an independent airport or a low cost hub but KL International Airport’s (KLIA) second terminal.

AirAsia, the main tenant of KLIA2, which recently lost its position as the world's largest low cost carrier hub to Bangkok’s Don Muaeng airport, said it would go ahead with its plans.

“I think in a way it is to put to MAHB's mind to stop denying that we don't matter, that we're not relevant.

“Because the way they are behaving… is like our requests and requirements in our operations, our guests, they seem to take their time in addressing them or ignoring it," a candid Aireen told a press conference.

She alluded to an icy relationship with the airport authority, claiming that meetings with the top management to iron out operation problems in the airport were denied.

http://www.thestar.com.my/news/nation/2016/06/21/airasia-go-ahead-rebrand-klia-2-as-lcct2/?utm_source=dlvr.it&utm_medium=twitter

 

Good God this is seriously silly. As if the confusion between KLIA1/KLIA2 is not enough.

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Is Malaysia the only country where they name terminals differently? How about just a simple Terminal 1 and 2? Does it matter the name carries LCCT literally means it's low cost?

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Is Malaysia the only country where they name terminals differently? How about just a simple Terminal 1 and 2? Does it matter the name carries LCCT literally means it's low cost?

Yes, Malaysia is the only country that name terminals differently. So that it is easier to differentiate between the terminals for premium carriers and low cost.

 

Singapore did it before by simply calling their low cost terminal as "Budget Terminal", now it has been demolished to make way for Terminal 4, which is geared towards budget carrier. Strange enough premium carriers are moving there: VN, KE, CX. Main tenant will be AirAsia Group.

 

TZ and TR have announced they will not moved from current T2.

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One thing for sure, the Msian domestic market is a cash cow for Airasia. It is virtually a monopoly being the sole real LCC in the market. So, no, I dont think Airasia will vacate its prime position in the Msian market.

 

totally agreed with this one.... if only AK start to falter and turn into red only then i believe they will move their hub to DMK.

 

Btw what is the benefit of changing this KLIA2 to LCCT2 ? Will the tix price for AK becoming cheaper or the efficiency of the airport become better / less water pounding? endless possibilities.. :D

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I think this is childish. MAHB should just ignore Air Asia's latest stunt.

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