Malaysia's low-cost air hub to take off ahead of Singapore

KUALA LUMPUR, Jan 29, 2006 (AFP) - Malaysia's low-cost aviation hub will begin business early March, ahead of rival Singapore's budget terminal to become Southeast Asia's first dedicated no-frills terminal, officials said.

"Definately, we will begin operating at the new hub before Singapore's budget terminal at Changi," AirAsia vice president Raja Mohamad Azmi told AFP Sunday.

Raja Azmi, who is also chief financial officer of the profit-making carrier, said it was preparing to start operations at the new terminal from early March.

Malaysia Airports (Sepang) Sdn Bhd general manager Azmi Murad had said operations at the low-cost hub could begin from March 6.

"We are working on a tentative date of March 6 for the terminal to be fully operational," he was quoted as saying by the Star newspaper Saturday.

Azmi, however, downplayed any rivalry with Singapore's Changi Airport.

"We are opening the terminal not to race ahead of Changi but because we are ready to do so," he said.

The terminal at Changi Airport, which has already been completed, is scheduled to be operational on March 26.

Malaysia's government hopes the new facility will help turn Kuala Lumpur International Airport (KLIA) into a regional aviation hub. Construction of the terminal for low-cost airlines began last June.

"At least five to six million people will use the low cost airline terminal in the first year of business. Obviously the numbers will grow," Raja Azmi said.

The 100-million-ringgit (27-million-dollar) hub is about 20 kilometres (13 miles) from the KLIA.

The terminal can handle 4,000 passengers an hour. Its 30 aircraft parking bays and 72 check-in counters would be fully operational by the launch date.

A shuttle bus would ferry passengers to and from KLIA.

But Raja Azmi said talks were still ongoing with Malaysia Airports about the commercial terms to operate at the new terminal.

"We need to agree on landing fees, rentals and passenger fees. If you have a low-cost terminal, the cost of doing business has to be lower. Lower cost will mean lower priced air tickets and more people will fly," he said.

Malaysia Airports, which operates 39 airports in the country, recently proposed to raise the departure tax to 65 ringgit from 45 ringgit.

AirAsia began operations at Subang airport near Kuala Lumpur but moved to KLIA, about 50 kilometres (30 miles) south of the capital, in July 2002 in line with the government's plan to make KLIA the main gateway for Malaysia.

The Malaysia-based airline, which dominates the crowded Southeast Asian low-cost sector, wants to ride the travel boom not only in its home region of half-a-billion people, but also in the emerging China and India markets.

It has ordered 100 brand-new Airbus A320 planes. Two aircraft have arrived and it is expected that one A320 aircraft will now arrive every month.

I thought Singapore has already opened a budget terminal...

^ That one is complete, but not yet open, and won't open before KLIA's budget terminal opens.

Are there any dedicated budget terminals on any other continent? In Europe and America the budget airlines just used smaller airports in the big cities to avoid the high fees at the major hubs. Smaller European and American cities only have one airport but the budget carriers cut costs in other ways - such as not using the extendable piers (ie you walk or take a shuttle bus between terminal gate and aircraft instead). Asian aviation seems to be so trend-following. Since Osaka Kansai opened the first "new generation" airport in 1994 suddenly all the others had to jump on the bandwagon and get an architectural landmark airport of their own (Hong Kong, Shanghai, Kuala Lumpur, Guangzhou, Bangkok, Beijing etc....). It's like a status symbol or "coming of age" for an Chinese or SE Asian city. The latest fad are these budget terminals. It's no surprise that hyper competitive Singapore and Kuala Lumpur are going to be the first. I get the impression that these two are always looking jealously over the neighbourly fence and trying to steal a march on the other (well KL is jealous of Singapore - perhaps not the reverse - but Singapore has to keep looking over its shoulder to stay one step ahead). Singapore even titled its new terminal "budget terminal" in huge letters - presumably so as not to dilute the more upmarket Changi Airport brand and image. The conclusion is that neither city has really stolen a march if their arch rival is opening one at the same time. Perhaps the only real winner was Bangkok where budget airlines can just continue using the old airport without the need to construct any new facilities at all.

Looking at how dull the building looks, it's not something i would look forward to.

Are there any dedicated budget terminals on any other continent? In Europe and America the budget airlines just used smaller airports in the big cities to avoid the high fees at the major hubs. Smaller European and American cities only have one airport but the budget carriers cut costs in other ways - such as not using the extendable piers (ie you walk or take a shuttle bus between terminal gate and aircraft instead).
Actually in the US, most of our airports are run down and old and cheap, so LCCs can fly most anywhere [fair weather mainly, of course.] ;)

If LAX and JFK were the nice, new international gateways they should be, Southwest and JetBlue wouldn't have such a presence there. :D

I get the impression that these two are always looking jealously over the neighbourly fence and trying to steal a march on the other (well KL is jealous of Singapore - perhaps not the reverse - but Singapore has to keep looking over its shoulder to stay one step ahead).
lol.. how shallow is yr conclusion...

^ Why shallow? It strikes me as being abundantly true! Are you denying that the two are fierce competitors? Or that KL is trying very hard to catch up with Singapore? If the opening of these two budget terminals, perhaps the only dedicated budget terminals in the world, in neighbouring cities, and within just 20 days of each other, is not evidence of an almost petty level of competitive rivalry, then what is?

well it doesnt strike me that KL is being jealous.. y shud we in the first place? it is only appropriate that KL regains some prominence lost before.. no doubt that competitive rivalry will always be there.. but not to a point of being jealous?

^ KL seems to copy Singapore and tries to excel in the same areas. And yes, for now at least, the jealousy is more likely to be from Kuala Lumpur towards Singapore. Singapore is richer, better planned, and a more important centre for international business. It's generally a more attractive and successful city. That's not to dismiss KL however. KL has certainly made huge and often succesful strides in a its bid to catch up and is undoubtedly a much more serious competitor to Singapore now than it was 10 years ago. However Singapore remains ahead and, until Kuala Lumpur catches up, it will envy Singapore rather than the reverse. The third competitor is Bangkok which has an advantage of scale over the other two. In terms of traffic volumes Bangkok aviation already exceeds Singapore and Kuala Lumpur even before the new airport opens. However Singapore and Kuala Lumpur definitely have an advantage in terms of urban transport infrastructure and living standards. Bangkok remains a chaotic, messy, ugly metropolis with appalling pollution and traffic congestion. It's a fun town though. :)

KL and Singapore...the way it is :) :)

Back to the point, it does not really matter who opens first, the most important thing is that they can work together to allow cheap flights between the two cites.

However, I feel that they shouldn't have included Singapore in the article, makes it sound too competitive and specific imo, just report its early opening is enough.

I dun mind competition if it benefits the consumers.....:yes:

Back to the point, it does not really matter who opens first, the most important thing is that they can work together to allow cheap flights between the two cites.

However, I feel that they shouldn't have included Singapore in the article, makes it sound too competitive and specific imo, just report its early opening is enough.But it is competitive! The article is honest journalism. ;)

If LAX and JFK were the nice, new international gateways they should be, Southwest and JetBlue wouldn't have such a presence there. :D

southwest doesn't serve JFK and jetblue doesn't serve LAX.

double post

southwest doesn't serve JFK and jetblue doesn't serve LAX.
Right, but Southwest does serve LAX and JetBlue JFK, I think I put them in that order... ;)

Are there any renderings of the terminal?

Budget aviation in Asia started in Malaysia with AirAsia. Then others tried to copy that model and catch up to AirAsia. Until now results are mixed, yet AirAsia is still profitable and revenues are growing very quickly!

Are there any renderings of the terminal?

been looking for the renderings for ages...but from my judgement of the terminal..reminds me of a warehouse or a big hypermarket..

http://i3.photobucket.com/albums/y59/payrol/DSC02116.jpg
does it look like a RM100 million project to u guys?
anyway..cant wait for the terminal to be open..i make sure i'll be there to take the photos of it on the first day..

^ simplicity rules i supposed..

southwest doesn't serve JFK and jetblue doesn't serve LAX.

Jetblue doesnt serve LAX?...i saw Jetblue A320 made emergency landing in LAX in the news

Jetblue doesnt serve LAX?...i saw Jetblue A320 made emergency landing in LAX in the news
They serve Long Beach Airport, not LAX. They did their emergency landing there because the runways are longer, and it would inconvenience the most people. :D

^ Why shallow? It strikes me as being abundantly true! Are you denying that the two are fierce competitors? Or that KL is trying very hard to catch up with Singapore? If the opening of these two budget terminals, perhaps the only dedicated budget terminals in the world, in neighbouring cities, and within just 20 days of each other, is not evidence of an almost petty level of competitive rivalry, then what is?
dude you're soooo immature! this is not freakin high school!

But it is competitive! The article is honest journalism. ;)
yes KL and Singapore are competitive but please don't downplay KL as being inferior than Singapore....both cities are great and it's cool to be in a healthy competition and I honestly think despite Singapore being an awesome city..it is tho a bit overrated.

^ KL seems to copy Singapore and tries to excel in the same areas. And yes, for now at least, the jealousy is more likely to be from Kuala Lumpur towards Singapore. Singapore is richer, better planned, and a more important centre for international business. It's generally a more attractive and successful city. That's not to dismiss KL however. KL has certainly made huge and often succesful strides in a its bid to catch up and is undoubtedly a much more serious competitor to Singapore now than it was 10 years ago. However Singapore remains ahead and, until Kuala Lumpur catches up, it will envy Singapore rather than the reverse. The third competitor is Bangkok which has an advantage of scale over the other two. In terms of traffic volumes Bangkok aviation already exceeds Singapore and Kuala Lumpur even before the new airport opens. However Singapore and Kuala Lumpur definitely have an advantage in terms of urban transport infrastructure and living standards. Bangkok remains a chaotic, messy, ugly metropolis with appalling pollution and traffic congestion. It's a fun town though. :)

i think it's not fair to downplay KLIA and malaysian budget aviation in general. in fact, S'pore is the copycat here...after AirAsia got the ball rolling. after all, Changi (or S'pore to be precise) is trying hard to catch up on KLIA in the budget aviation sector.

dude you're soooo immature! this is not freakin high school!Don't be ridiculous. It's obviously a competitive situation and pointing out the fact is in no way "immature". I suppose you regard the lead article as "immature" too right? :|

i think it's not fair to downplay KLIA and malaysian budget aviation in general. in fact, S'pore is the copycat here...after AirAsia got the ball rolling. after all, Changi (or S'pore to be precise) is trying hard to catch up on KLIA in the budget aviation sector.Yes KL may be the leader for budget aviation (though Singapore was barely behind!!) but Singapore realised the importance of aviation to its economy decades ago and in building its glossy new airport, and generally trying to boost its aviation sector, it is very much Kuala Lumpur that has been playing catch up ball. KL has tried to catch up with Singapore in finance too.

Yes KL may be the leader for budget aviation (though Singapore was barely behind!!) but Singapore realised the importance of aviation to its economy decades ago and in building its glossy new airport, and generally trying to boost its aviation sector, it is very much Kuala Lumpur that has been playing catch up ball. KL has tried to catch up with Singapore in finance too.

At least Airasia is the answer to thousands of Malaysians who thought they never ever fly can now actually spend a handful of their pocket money travelling all around Malaysia and overseas

been looking for the renderings for ages...but from my judgement of the terminal..reminds me of a warehouse or a big hypermarket..

http://i3.photobucket.com/albums/y59/payrol/DSC02116.jpg
does it look like a RM100 million project to u guys?
anyway..cant wait for the terminal to be open..i make sure i'll be there to take the photos of it on the first day..

i don't understand that...

i mean it's obviously cheaply done.. but it doesn't mean it has to look shit... i guess it's just a deliberate attempt to differentiate the main terminal from the budget terminal and make it look like nothing more than a metal shed.

Yes KL may be the leader for budget aviation (though Singapore was barely behind!!) but Singapore realised the importance of aviation to its economy decades ago and in building its glossy new airport, and generally trying to boost its aviation sector, it is very much Kuala Lumpur that has been playing catch up ball. KL has tried to catch up with Singapore in finance too.

sorry for being harsh, but there's no way S'pore can catch up with KL in budget aviation...simply because it lacks all the key ingredients. to be a strong low cost hub, you'll need domestic flilght sectors or loose cross border agreement like Europe. With countries in Asia closely guarding their borders ... i doubt budget aviation in S'pore will flourish as much as what ppl have predicted. Just look at the present situation...Valuair sold off, Jet Star needed to be merged with its parent company to be able to survive, Tiger kept mum on its financial results. to put things in a nutshell, llc in s'pore has shrunk over the years rather and having a growth.

so monkey, i'm not bashing s'pore here, but we just have to look at the reality. S'pore has grown to it's limit now leaving very less or maybe none for this tiny republic scale up to. i'm not denying that s'pore has the competitive edge in the region but do not downplay other neighbouring countries because they are catching up really fast. so when it comes to lcc boom, i'd say it's going to happen in countries like china, india, indonesia....but definately not S'pore.

^ Jetstar, Tiger, and Valuair didn't even exist a few years ago. The merger between Jetstar and Valuair reflects patterns of consolidation in Europe (Easyjet bought Go and Ryanair bought Buzz). You are right that the restrictions on aviation in SE Asia make the situation more difficult than in the EU but I don't think budget aviation in Singapore is about to go out of business. Singapore remains the international business hub for SE Asia so demand will remain strong. Its domestic population may not be large but they are rich and can afford to travel regularly. And Singapore does have somewhere to grow. It can get richer and more populous. Lee Kuan Yew wants to expand Singapore's population to 8 million.

^ Jetstar, Tiger, and Valuair didn't even exist a few years ago. The merger between Jetstar and Valuair reflects patterns of consolidation in Europe (Easyjet bought Go and Ryanair bought Buzz). You are right that the restrictions on aviation in SE Asia make the situation more difficult than in the EU but I don't think budget aviation in Singapore is about to go out of business. Singapore remains the international business hub for SE Asia so demand will remain strong. Its domestic population may not be large but they are rich and can afford to travel regularly. And Singapore does have somewhere to grow. It can get richer and more populous. Lee Kuan Yew wants to expand Singapore's population to 8 million.

The matter of fact is that Air Asia is the largest, the only listed, the only profitable budget carrier in South East Asia and in Asia. Monkey, You bring up and compare consolidation from a european perspective of Ryanair and Easyjet, but these 2 companies are sucessful and profitable, whilst the same cannot be said for Jetstar, Valuair or Tiger which are far from the same level of success.

Budget air travel is not only at an infantile stage in Singapore vis-a-vis Malaysia, its not even anywhere close and seriously lags behind Malaysia, the numbers that Air Asia churns out, the consistent large profits and along side the momentum of its incredible growth, the sheer success, leave any Singaporean budget rival behind.

Yes KL may be the leader for budget aviation (though Singapore was barely behind!!)

Yes, the Singaporean equivalent is FAR FAR behind, not "barely" as you say but FAR behind the numbers speak for themselves and not only is it far behind, with the sheer incredible growth of the Air Asia group which is adding a brand new A320 every month till well over 2012 and see's Air Asia with a confirmed order of a whopping new 100 planes from Airbus, will only add and continue to broaden the distance between any of its Singaporean rivals.

From what I gather the Malaysian Budget terminal is initially expected to recieve well over 4million passengers, from a capacity of 10 million passengers, those initial numbers are actually double the total capacity of the Singaporean counterpart budget terminal, of only which we can only guess what its initial passenger numbers would be, with only 1 airline (Tiger Airways) having signed up to use the terminal. Mind you, Tiger Airways has yet to declare a profit and is said to be flying planes a quarter full to some of its asian destinations.

The bottom line is this, Budget Airline travel has yet to take off in Singapore the same way it has in Malaysia and with the current success and growth of Air Asia, will only provide greater distance and leave its Singaporean counterparts far far behind, regardless of Singapore's success in finance or LKY's ambitions for an 8 million population as you have so mentioned, your points monkey, are irrelavant and fall far from current realities and their trends within the budget airline sector of these 2 countries.

The matter of fact is that Air Asia is the largest, the only listed, the only profitable budget carrier in South East Asia and in Asia. Monkey, You bring up and compare consolidation from a european perspective of Ryanair and Easyjet, but these 2 companies are sucessful and profitable, whilst the same cannot be said for Jetstar, Valuair or Tiger which are far from the same level of success.

Budget air travel is not only at an infantile stage in Singapore vis-a-vis Malaysia, its not even anywhere close and seriously lags behind Malaysia, the numbers that Air Asia churns out, the consistent large profits and along side the momentum of its incredible growth, the sheer success, leave any Singaporean budget rival behind.

Yes, the Singaporean equivalent is FAR FAR behind, not "barely" as you say but FAR behind the numbers speak for themselves and not only is it far behind, with the sheer incredible growth of the Air Asia group which is adding a brand new A320 every month till well over 2012 and see's Air Asia with a confirmed order of a whopping new 100 planes from Airbus, will only add and continue to broaden the distance between any of its Singaporean rivals.

From what I gather the Malaysian Budget terminal is initially expected to recieve well over 4million passengers, from a capacity of 10 million passengers, those initial numbers are actually double the total capacity of the Singaporean counterpart budget terminal, of only which we can only guess what its initial passenger numbers would be, with only 1 airline (Tiger Airways) having signed up to use the terminal. Mind you, Tiger Airways has yet to declare a profit and is said to be flying planes a quarter full to some of its asian destinations.

The bottom line is this, Budget Airline travel has yet to take off in Singapore the same way it has in Malaysia and with the current success and growth of Air Asia, will only provide greater distance and leave its Singaporean counterparts far far behind, regardless of Singapore's success in finance or LKY's ambitions for an 8 million population as you have so mentioned, your points monkey, are irrelavant and fall far from current realities and their trends within the budget airline sector of these 2 countries.Ridiculous. The mere mention that Kuala Lumpur and Singapore are competitive, and that KL is trying to catch up (both of which are bloody obvious!), and I get Malaysians calling me names, reducing the argument to budget airlines (flattering for KL), and now long lecturing spiels insisting ad-naseum that AirAsia is the biggest and best blah blah blah.... Pathetic! :|

^ KL seems to copy Singapore and tries to excel in the same areas. And yes, for now at least, the jealousy is more likely to be from Kuala Lumpur towards Singapore.

Such a Singaporecentric point of view. You are blinded and oblivious to the fact that Budget Airline sector, Budget terminals is a case of Singapore copying Malaysia!

As mentioned by HkskylineBudget aviation in Asia started in Malaysia with AirAsia. Then others tried to copy that model and catch up to AirAsia. Until now results are mixed, yet AirAsia is still profitable and revenues are growing very quickly!

^^Isn't this the case of Singapore copying Malaysia?

What purpose is there for Singapore Changi to support a budget airline sector, when its not profitable, not successful? Well other than to copy Malaysia ofcourse. :P The reason why there is no need for Changi to follow this path can be reflected by other major airline hubs in the world, look at London Heathrow, Frankfurt or even Hong Kong these airports are sticking to what the serve best, that is the major airlines. Why is Singapore bothering in the first place when there aren't any tangible similarities with the Malaysian budget sector, the growth rates, the success of budget airlines is in Malaysia and not with its Singaporean counterparts.

^ KL seems to copy Singapore and tries to excel in the same areas. And yes, for now at least, the jealousy is more likely to be from Kuala Lumpur towards Singapore. Singapore is richer, better planned, and a more important centre for international business. It's generally a more attractive and successful city. That's not to dismiss KL however. KL has certainly made huge and often succesful strides in a its bid to catch up and is undoubtedly a much more serious competitor to Singapore now than it was 10 years ago. However Singapore remains ahead and, until Kuala Lumpur catches up, it will envy Singapore rather than the reverse. The third competitor is Bangkok which has an advantage of scale over the other two. In terms of traffic volumes Bangkok aviation already exceeds Singapore and Kuala Lumpur even before the new airport opens. However Singapore and Kuala Lumpur definitely have an advantage in terms of urban transport infrastructure and living standards. Bangkok remains a chaotic, messy, ugly metropolis with appalling pollution and traffic congestion. It's a fun town though. :)

Jangan peduli orang macam ni ...puas hati dia kata macam tu! :sleepy:

Ridiculous. The mere mention that Kuala Lumpur and Singapore are competitive, and that KL is trying to catch up (both of which are bloody obvious!), and I get Malaysians calling me names, reducing the argument to budget airlines (flattering for KL), and now long lecturing spiels insisting ad-naseum that AirAsia is the biggest and best blah blah blah.... Pathetic! :|

Its not insisting the biggest blah blah ad nauseam my friend, its a mere FACT which I'd like to reiterate. That matter of fact at hand, is that the budget airline scene in Singapore is pathetic. It is pathetic only after comparing and contrasting to its Malaysian counterpart. The figures are there!! The numbers are there. When has a Singaporean budget airline ever produced a profit? It even pales in comparison to the size in passengers carried, it pales in its growth and at its current state of unprofitablility, only seems unsustainable.

You accuse me of reducing the argument to budget airlines (flattering for KL), well this budget terminal is to serve the budget aviation market, thus budget airlines is it not? At least I don't come out and resort with stupid nonsensical statements about LKY's 8 million population plans, quoting Singapore's success in finance, or claiming KL jealousy, which has nothing to do with Budget terminals other than represent your misguided prideful nature ad nauseam, reflecting no constuctive points to add.

Folks here have a point, that being that your points are not only irrelavent, its true, they're immature. Time to grow up monkey boy.

Jangan peduli orang macam ni ...puas hati dia kata macam tu! :sleepy:

:dunno: :yes:

http://www.airasia.com/site/en/images/airasia_01.gif

AirAsia Traffic Statistics for FY 2005 - July to June
Malaysia - 4,414,069
Thailand - 1,603,594
Indonesia - 271,518 (began operations in January 2005)
Total - 6,289,181

Annual Report 2005 Revenue and Profit Figures
Note : These should be for the Malaysian sector only.
2005 Revenue - 666.0 RM million (vs. 2004 - 392.7)
Net Income - 111.6 RM million (vs. 2004 - 49.1)
Net Cash Flow - 254 RM million (vs. 2004 - 26.0)
RPK (million) - 4,881
ASK (million) - 6,525
Load Factor - 75%
Fleet Size - 35 as of 25 December 2005 (33 x Boeing 737-300 + 2 Airbus 320) for entire Group

Meanwhile, the Singaporean LCCs are very reluctant to disclose information about their traffic numbers and financials. Perhaps it's because they are unlisted so they don't need to release all that information publically. The industry is consolidating though. Valuair had some difficulties with its business model and merged with Jetstar Asia, while Qantas wasn't too happy about Jetstar Asia's problems with flying to China.

http://www.tigerairways.com/img/common/logo.gif

Tiger Airways

Fleet Size - 4 x Airbus A320
Flew its 500,000th passenger ahead of its first anniversary in September 2005.
As a private company, Tiger Airways is not required to disclose financial figures.

http://www.jetstarasia.com/img/jsalogo.gif

Jetstar Asia / Valuair

Fleet Size - 5 @ Jetstar Asia + 4 @ Valuair = 9

Ridiculous. The mere mention that Kuala Lumpur and Singapore are competitive, and that KL is trying to catch up (both of which are bloody obvious!), and I get Malaysians calling me names, reducing the argument to budget airlines (flattering for KL), and now long lecturing spiels insisting ad-naseum that AirAsia is the biggest and best blah blah blah.... Pathetic! :|

I agree with you that KL and Singapore are both very competitive in various sectors and KL is still playing catch up to S'pore in a most areas but you are being ignorant by saying that KL is trying to copy Singapore in the budget airline sector. It is obvious that AirAsia inspired the budget airline industry throughout Asia including Singapore and AirAsia is far more sucessful than it's Singaporean rivals. It doesn't make sense when you said KL is copying Singapore when it comes to the budget airline sector. Btw, why should we be jealous of Singapore? Both KL and Singapore are just competitive. Period.

Thanks for those set of numbers hkskyline, well done :) . However becareful though, monkey might call you "Ridiculous", accuse you of "long lecturing spiels insisting ad-naseum that AirAsia is the biggest and best blah", eventhough you're supporting this fact with provided fleet and passenger figures for a comparison of Air Asia and its Singaporean counterparts.

jlshyang, your post was the point I was trying to make.

Well before Air Asia was listed, when it was still private, they had released their financials eventhough there was no legal requirement to do so. Private companies sometimes post financials, especially if they've been doing well.

Anyways, excerpts from The Shipping Times, August 2nd 2005

The LCCs in Singapore haven't been as fortunate, and their earnings are reportedly dismal, raising questions whether LCCs in the region will continue to face turbulence or - worse - fade away like some of the failed LCCs in the US and Europe.'

Indeed, other than Air-Asia, none of the region's dozen or so budget carriers have revealed their revenue, load numbers or breakeven points. But given the circumstances in which they are operating, it doesn't take a genius to guess what these might be.

Tiger is said to be filling less than a quarter of its planes on its flights from Singapore to Hatyai in southern Thailand

As far as we know, only AirAsia is profitable, while the rest struggle as industry overcapacity, low fares and high jet fuel prices taking their toll. AirAsia has benefited from its early start in the no-frills market and its smart hedging programme said Shukor Yusof, aviation writer at Standard & Poor's.

It doesn't make sense when you said KL is copying Singapore when it comes to the budget airline sector. Btw, why should we be jealous of Singapore?

If anything, I think from the behaviour and the posts by monkey, the jealousy seems to be on the Singaporean side, or the very least jealousy derived from Singaporean perspective. But why be jealous of Malaysian budget aviation success, of all things, this jealousy seems vaguely pathetic and quite sad.

Its petty, does this "jealousy" stem from a lack of something? Why exhibit such petty jealousy over such a thing? Perhaps an inadequacy? Its a reflection of an inflated size complex, you have yours smaller, jealous that someone else has it bigger? Well monkey boy, I wish I can tell you size doesn't matter, but apparently it does.

But, lets recap what Nazrey has said in malay, btw he's not Malaysian he's from Thai, Jangan peduli orang macam ni ...puas hati dia kata macam tu! basically saying not to give much notice to you monkey boy, especially with your comments, which particularly reek of an inferiority complex, "oh no! Malaysia is playing catch up, copying from Singapore!!"? quite pathetic, especially the context in which this thread is about, It seems that the copying you claim is the other way around!

Nevermind, stick with your the petty jealousy, the inadequacy and inferiority complex of the FACT that there's a vastly more successful budget aviation sector in Malaysia, hell, even hide behind your allusions and preconceived notions of superiority. I've stated the facts, hkskyline has come up with the figures to support, jlshyang repeated the same point, its up to you.
Perhaps you're gonna enlighten us with the great mentor minister LKY's grand plan of having 8 million people or lecture all of us with Singapores might in finance, as you have done before. Perhaps from your simple intellectual point, might in finance, 8 million population translates to success in the budget aviation sector, oblivious to reality at hand.

You are a bunch of smart and witty malaysians ...and more sarcasm than the native speakers.
Thanks to the bilingual and trilingual education!

Its not insisting the biggest blah blah ad nauseam my friend, its a mere FACT which I'd like to reiterate. That matter of fact at hand, is that the budget airline scene in Singapore is pathetic. It is pathetic only after comparing and contrasting to its Malaysian counterpart. The figures are there!! The numbers are there. When has a Singaporean budget airline ever produced a profit? It even pales in comparison to the size in passengers carried, it pales in its growth and at its current state of unprofitablility, only seems unsustainable.Oh please keep your hair on.... I have no connection to Singapore. I'm a Londoner. I could argue that AirAsia is pathetic in every way compared to Ryanair and EasyJet. Your point? :|

My point, for what it's worth, was that Singapore and Kuala Lumpur are competitive, that KL envies Singapores success, and is working hard to catch up with Singapore. Is there anything to dispute there? No. And if you want to look at the scale and value of Singapore aviation compared to Kuala Lumpur then it's KL that comes out looking pathetic. I suggest you calm yourself and keep things in perspective.... :|You accuse me of reducing the argument to budget airlines (flattering for KL), well this budget terminal is to serve the budget aviation market, thus budget airlines is it not? At least I don't come out and resort with stupid nonsensical statements about LKY's 8 million population plans, quoting Singapore's success in finance, or claiming KL jealousy, which has nothing to do with Budget terminals other than represent your misguided prideful nature ad nauseam, reflecting no constuctive points to add.My points were that Singapore and Kuala Lumpur are competitive (obvious!), that KL is working hard to catch up with Singapore (also obvious!), and that Singapore needs to look over its shoulder to stay one step ahead (obvious again....). I never at any point claimed that Singapore was ahead in budget aviation. You are trying to make out as if this was my argument so that can knock it down with "the facts". However everything I have actually said is 100% factually true. You cannot counter with "facts" against assertions I never made!!Folks here have a point, that being that your points are not only irrelavent, its true, they're immature. Time to grow up monkey boy.Why "grow up"? Nothing I have said is immature. However your responses are. Your responses are those of someone who has no arguments and so resorts to personal insult. Your extreme sensitivity to my assertion that Singapore is ahead is typical of someone who is jealous - which is just as I said from the outset.... :|

I agree with you that KL and Singapore are both very competitive in various sectors and KL is still playing catch up to S'pore in a most areas but you are being ignorant by saying that KL is trying to copy Singapore in the budget airline sector. It is obvious that AirAsia inspired the budget airline industry throughout Asia including Singapore and AirAsia is far more sucessful than it's Singaporean rivals. It doesn't make sense when you said KL is copying Singapore when it comes to the budget airline sector. Btw, why should we be jealous of Singapore? Both KL and Singapore are just competitive. Period.But I never said that Kuala Lumpur was trying to catch up with Singapore in the budget airline sector did I? You, like the others, are arguing against a point I never made. Let me repeat my original post so that you can see for yourself exactly what I said and, more importantly, what I did not say:

"Are there any dedicated budget terminals on any other continent? In Europe and America the budget airlines just used smaller airports in the big cities to avoid the high fees at the major hubs. Smaller European and American cities only have one airport but the budget carriers cut costs in other ways - such as not using the extendable piers (ie you walk or take a shuttle bus between terminal gate and aircraft instead). Asian aviation seems to be so trend-following. Since Osaka Kansai opened the first "new generation" airport in 1994 suddenly all the others had to jump on the bandwagon and get an architectural landmark airport of their own (Hong Kong, Shanghai, Kuala Lumpur, Guangzhou, Bangkok, Beijing etc....). It's like a status symbol or "coming of age" for an Chinese or SE Asian city. The latest fad are these budget terminals. It's no surprise that hyper competitive Singapore and Kuala Lumpur are going to be the first. I get the impression that these two are always looking jealously over the neighbourly fence and trying to steal a march on the other (well KL is jealous of Singapore - perhaps not the reverse - but Singapore has to keep looking over its shoulder to stay one step ahead). Singapore even titled its new terminal "budget terminal" in huge letters - presumably so as not to dilute the more upmarket Changi Airport brand and image. The conclusion is that neither city has really stolen a march if their arch rival is opening one at the same time. Perhaps the only real winner was Bangkok where budget airlines can just continue using the old airport without the need to construct any new facilities at all."

If anything, I think from the behaviour and the posts by monkey, the jealousy seems to be on the Singaporean side, or the very least jealousy derived from Singaporean perspective. But why be jealous of Malaysian budget aviation success, of all things, this jealousy seems vaguely pathetic and quite sad.

Its petty, does this "jealousy" stem from a lack of something? Why exhibit such petty jealousy over such a thing? Perhaps an inadequacy? Its a reflection of an inflated size complex, you have yours smaller, jealous that someone else has it bigger? Well monkey boy, I wish I can tell you size doesn't matter, but apparently it does.

But, lets recap what Nazrey has said in malay, btw he's not Malaysian he's from Thai, basically saying not to give much notice to you monkey boy, especially with your comments, which particularly reek of an inferiority complex, "oh no! Malaysia is playing catch up, copying from Singapore!!"? quite pathetic, especially the context in which this thread is about, It seems that the copying you claim is the other way around!

Nevermind, stick with your the petty jealousy, the inadequacy and inferiority complex of the FACT that there's a vastly more successful budget aviation sector in Malaysia, hell, even hide behind your allusions and preconceived notions of superiority. I've stated the facts, hkskyline has come up with the figures to support, jlshyang repeated the same point, its up to you.
Perhaps you're gonna enlighten us with the great mentor minister LKY's grand plan of having 8 million people or lecture all of us with Singapores might in finance, as you have done before. Perhaps from your simple intellectual point, might in finance, 8 million population translates to success in the budget aviation sector, oblivious to reality at hand.Truly pathetic! And you accuse me of petty immaturity? :|

Two small ponts that nonetheless completely sink your assumptions and arguments:

1) I am not Singaporean. I have no connection to Singapore whatsoever. I am neutral between Singapore and Kuala Lumpur.

2) I am certainly not jealous. My city (London) is by far the world's biggest aviation hub and by far the world's biggest budget aviation hub too.

My city (London) is by far the world's biggest aviation hub and by far the world's biggest budget aviation hub too.

Umm... biggest budget aviation hub - yes. "By far" the biggest aviation hub - debatable. You might find some pushback from Chicago or Atlanta there...

Now back to the topic...

^ KL seems to copy Singapore and tries to excel in the same areas. And yes, for now at least, the jealousy is more likely to be from Kuala Lumpur towards Singapore. Singapore is richer, better planned, and a more important centre for international business. It's generally a more attractive and successful city. That's not to dismiss KL however. KL has certainly made huge and often succesful strides in a its bid to catch up and is undoubtedly a much more serious competitor to Singapore now than it was 10 years ago. However Singapore remains ahead and, until Kuala Lumpur catches up, it will envy Singapore rather than the reverse. The third competitor is Bangkok which has an advantage of scale over the other two. In terms of traffic volumes Bangkok aviation already exceeds Singapore and Kuala Lumpur even before the new airport opens. However Singapore and Kuala Lumpur definitely have an advantage in terms of urban transport infrastructure and living standards. Bangkok remains a chaotic, messy, ugly metropolis with appalling pollution and traffic congestion. It's a fun town though. :)


well, perhaps this post was the root of all those debates and confusion. Again, yes, KL is still playing catch up with Singapore and both are just competitive. It's a healthy competition between the two. There's no jealousy, copying or whatsoever between KL and Singapore unlike your perception which have been largely influenced by the western media. Peace.

KUALA LUMPUR, Feb 6 (Bernama) -- The operation date for the KL International Airport (KLIA) low cost carrier (LCC) terminal is expected to be known this week after the final inspection by transport ministry officials on Thursday.

Transport Minister Datuk Seri Chan Kong Choy said he would lead the ministry officials to conduct the final inspection before deciding when it would commence operation.

"I will make a working visit (this Thursday), I will have (to be) satisfied (with) all the conditions there," he said.

Chan was commenting on whether the KLIA LCC terminal would be operational early next month, ahead of a similar terminal at Changi Airport, which is already completed. The Changi LCC terminal is scheduled for operation on March 26.

The KLIA LCC terminal is designed to handle 10 million passengers per annum and has 30 parking bays to accommodate Boeing 737 and Airbus 320 aircraft.

The terminal which can handle 4,000 passengers an hour is being equipped with 72 check-in-counters and supported by the existing parking apron.

Additional infrastructure for the terminal include extension to existing parking apron, car park, surface access and other utilities.

Malaysia's AirAsia, the region's leading LCC, will be the main occupier of the RM108 million terminal, taking up 24 of the 30 parking bays available.

The KLIA LCC terminal will be five times larger than the new LCC terminal at the Singapore Changi Airport, which can handle about two million passengers a year.

-- BERNAMA

eerrhhmm..guys, pls keep it down. perhaps jlshyang is right...there're some slipery slopes in that post by monkey. perhaps he shouldn't generalize his thoughts right from the begining and all these confusions can be avoided. so lets get back to the topic...we're talking abt KLIA's low cost terminal right ? oh yes...well...the fact is - AirAsia is the leader in no frills travel in the region...and i reckon it will continue to lead for many many years to come. We don't have anything like europe - so budget airlines in smallish countries with no domestic routes will no make it big here. no one is interested to move into the budget terminal in changi, spare tiger - even jetstar is skeptical..and not before long...it might not even serve it's purpose as a budget terminal - maybe they will convert it into a full service terminal in order to get it out of redundancy.

Umm... biggest budget aviation hub - yes. "By far" the biggest aviation hub - debatable. You might find some pushback from Chicago or Atlanta there...

Now back to the topic...No. London airports handled 134 million pax in 2005. That is far more than Atlanta, Chicago, or any other city.

well, perhaps this post was the root of all those debates and confusion. Again, yes, KL is still playing catch up with Singapore and both are just competitive. It's a healthy competition between the two. There's no jealousy, copying or whatsoever between KL and Singapore unlike your perception which have been largely influenced by the western media. Peace.My perceptions don't come from the western media. I have never read or seen any western media on this topic. My perceptions come from visiting the two cities/countries, talking to the people I met there, and also from discussions on internet forums like this one.

My perceptions don't come from the western media. I have never read or seen any western media on this topic. My perceptions come from visiting the two cities/countries, talking to the people I met there, and also from discussions on internet forums like this one.

No i don't mean western media on this topic because you were generally speaking about the competition of both KL and Singapore in various sectors and not only on the budget airline sector. Well, different people have different views so it's better not to generalise that all Malaysians are envious of Singapore or Singaporeans being 'kiasu' (a sarcastic Hokkien term widely known in both Malaysia and Singapore to describe Singaporeans in general - afraid of losing - especially losing to Malaysia.). In fact, both countries are very similar in terms of culture and history, not to mention the thousands of Malaysians working and studying in Singapore and also the strong family ties between people of both countries - most Malaysians have relatives across the causeway and vice versa. A very significant number of Singaporeans originated from Malaysia as well.

It is best regarded as a competition between 'cousins' without any elements of jealousy or 'copying' between the two. Sorry for drifting too far from the topic. Now back to the topic.

^ Family jealously and rivalry is always the most intense. ;)

Truly pathetic! And you accuse me of petty immaturity? :|

Two small ponts that nonetheless completely sink your assumptions and arguments:

1) I am not Singaporean. I have no connection to Singapore whatsoever. I am neutral between Singapore and Kuala Lumpur.

2) I am certainly not jealous. My city (London) is by far the world's biggest aviation hub and by far the world's biggest budget aviation hub too.

When have I ever said or claimed that YOU monkey are Singaporean? Who is making the assumptions now?

Don't be daft!! Jealousy, was your choice of words by the way, You mention Malaysians (KL) being jealous of Singapore??? How is that even applicable in the budget aviation context??? Seeing how small the latter is in comparison?

Oh please keep your hair on.... I have no connection to Singapore. I'm a Londoner. I could argue that AirAsia is pathetic in every way compared to Ryanair and EasyJet. Your point? :|

What the hell does Ryanair or Easyjet got to do with the budget aviation sector in ASIA?? Thats arbitrary! My point with Air Asia focused on its success which has been attributed to the entire success and growth of the budget aviation sector in Asia, it was the pioneer, this was my point. It is the Southwest, Ryan Air, Easy Jet equivalent in Asia and it has done the same thing to the budget aviation sector as what these 2 european companies have done in Europe.

As a londoner you can argue that Air Asia is pathetic in everyway compared with Ryanair and Easyjet.

You can argue that Air Asia is pathetic when compared to Ryanair and Easyjet, but what would be the point of that, other than being your usual contemptuous self? I mean this is as pointless as me arguing that Ryanair or Easyjet are pathetic when compared to Southwest Airlines in US. Seeing that Ryanair and Easyjet combined would not even be half the size and success of Southwest, in terms of every indicator, but what purpose that achieve? (Anyways a little side note, Air Asia has lower cost per seat structure than Ryanair, Easyjet or Southwest, it has the lowest cost structure in the industry but I agree with you that it is "pathetic" when compared its more established cousins). Lets bring it to context here, I compared Air Asia because of its role in the budget avaition sector in Asia and not for boastful reasons.

My point, for what it's worth, was that Singapore and Kuala Lumpur are competitive, that KL envies Singapores success, and is working hard to catch up with Singapore. Is there anything to dispute there? No.

Your points are pathetic!! Envy?? How do you even begin to support your bogus claim?? Please prove this "envy" thing that you're claiming over and over again? Does Britain envy the US? Does France envy Germany?? Does Chad envy Mali, you can't prove your point of "envy" and any attempt is childish and immature.

And if you want to look at the scale and value of Singapore aviation compared to Kuala Lumpur then it's KL that comes out looking pathetic.

What has scale and value Singapore aviation got to do with the budget aviation industry?? Stick with the thread, It is true Singapores aviation scene is bigger, but not the budget aviation scene is it now? Whats the point you're trying to make?

I suggest you calm yourself and keep things in perspective.... :|My points were that Singapore and Kuala Lumpur are competitive (obvious!), that KL is working hard to catch up with Singapore (also obvious!), and that Singapore needs to look over its shoulder to stay one step ahead (obvious again....).

This is not the bone of contention monkey boy, it was your inablility to accept my claims of the larger much more successful budget avaition scene in Malaysia, noting the spectacular rise of Air Asia as the cause and comparing to its Singaporean counterpart. You didn't take note with what I said? You claimed it ridiculous. claiming I'm long lecturing spiels insisting ad-naseum that AirAsia is the biggest and best blah blah when I'm just comparing and contrasting, you deprecate my points out of what seems to be disbelief?


I never at any point claimed that Singapore was ahead in budget aviation.

No you never claimed, but what you do claim is that the Singaporean budget aviation is in your words "barely" far behind, when I try to show that in reality it is other wise, you then spout your disbelief, calling it ridiculous.


You are trying to make out as if this was my argument so that can knock it down with "the facts". However everything I have actually said is 100% factually true. You cannot counter with "facts" against assertions I never made!!


Bullocks mate!! What you've said are not 100% factually true as you claim!!! You have made some unfactual assertions. Let me list some of your assertion, which are NOT FACTS!! BUT ASSERTIONS!!

KL envies Singapore
KL is Jealous of Singapore
KL seems to copy Singapore

They are not 100% factually true, these are assertions with no support or proof, I'd like to see you try to prove your "jealousy" "envy" or "copy" statements.


However your responses are. Your responses are those of someone who has no arguments and so resorts to personal insult.

Mate, you dismissed my intial points which was when I just compared and contrasting the small, unprofitable and has yet to be seen sustainable Singaporean budget avaition sector to its proven and successful Malaysian counterpart, you dismissed my points with sheer contempt, when they were valid true points. You seemed to miss these points citing, Air Asia lecturing.

Your extreme sensitivity to my assertion that Singapore is ahead is typical of someone who is jealous - which is just as I said from the outset....

Your assertions of Singapore being ahead of Malaysia is not my bone of contention with you, I coudn't care less if Singapore is this or that, infact I agree with you, its development is far ahead of Malaysia, I've lived in both countries to notice the large disparity. I have never denied this. But what has this got to do with anything? What is your point? Also What do I have to be jealous about? I'm living in Europe and anyways nothing that you have said merits any form of jealousy.

When have I ever said or claimed that YOU monkey are Singaporean? Who is making the assumptions now?You implied so here:

Subangite: "If anything, I think from the behaviour and the posts by monkey, the jealousy seems to be on the Singaporean side, or the very least jealousy derived from Singaporean perspective."Jealousy, was your choice of words by the way, You mention Malaysians (KL) being jealous of Singapore??? How is that even applicable in the budget aviation context??? Seeing how small the latter is in comparison?Yes jealousy was the word I used and I stand by it. I think your extreme sensitivity on the matter is evidence of exactly the kind of jealousy I was referring to. And I never said KL was jealous of Singapore's budget airline sector. However I did say that it was jealous of Singapore's greater success as an international business hub, superior urban planning, and superior infrastructure - and the latter includes Singapore's more developed aviation sector.

I mean this is as pointless as me arguing that Ryanair or Easyjet are pathetic when compared to Southwest Airlines in US. Seeing that Ryanair and Easyjet combined would not even be half the size and success of Southwest, in terms of every indicator, but what purpose that achieve?You would be wrong. Ryanair and Easyjet combined are about the same size as Southwest. Both European airlines offer much cheaper fares than Southwest, are growing faster, and achieve far better load factors. Ryanair is also considerably more profitable.Envy?? How do you even begin to support your bogus claim?? Please prove this "envy" thing that you're claiming over and over again? Does Britain envy the US? Does France envy Germany?? Does Chad envy Mali, you can't prove your point of "envy" and any attempt is childish and immature.Your envy is obvious for a start. Why else would you be so hyper-sensitive?

BBC News
Monday, 6 February 2006, 23:56 GMT

Cut-price air travel has arrived in South-East Asia - and it is making the same kind of impact as it did in Europe and the United States.

Well-established national carriers that have enjoyed near-monopolies are finally being challenged.

Because of the limited access to computers in some countries in the region, tickets are also available through travel agents.

But the same principle applies: the earlier you book, the cheaper the ticket.

One of the main players is the Kuala Lumpur-based Air Asia, a company that has grown rapidly since it started four years ago.

It recently made a canny decision to buy advertising at English Premiership football matches - ensuring massive exposure to potential customers around the world.

New destinations

Air Asia's chief executive, Tony Fernandes, feels he has thrown down a challenge to the established carriers in the region - although an inability to obtain landing rights in Singapore clearly rankles.

"It is a country that is supposed to welcome open competition, but they are scared of us," he said.

"We will open up new destinations. People can go to Bali and Bangkok to shop. It is going to be a loss for Singapore."

Another of those new destinations is Cambodia. In October, Air Asia started flying from Phnom Penh and Siem Reap to Bangkok and Kuala Lumpur.

With no major carriers of its own, Cambodia operates an "open skies" policy - and the low-cost carrier has been given a warm welcome.

There were already two airlines offering direct flights to Bangkok. But the effect on the cost of flying to Malaysia, previously only possible with Malaysia Airlines, has been dramatic.

It is now possible to book a return from Phnom Penh for as little as $41, including taxes.

Even though it has been struggling financially, Malaysia Airlines was forced to respond with price cuts of its own.

Welcome change

Jet Star Asia, backed by the Australian carrier Qantas, has made a similar impact by starting flights between Singapore and Cambodia.

Singapore Airlines' regional carrier, SilkAir, used to charge $400 for a round trip from Phnom Penh.

The arrival of Jet Star Asia's service has prompted SilkAir to cut its prices in half.

It is a welcome change for people in Cambodia to have a choice over which airline to fly.

The country's own carriers have an unhappy recent history, and Phnom Penh is littered with the offices of companies that have ceased to operate.

Those still flying have to battle an image problem.

Local airlines have a reputation for cancelling flights at short notice, and there are also safety concerns.

PMT Air flies elderly Antonovs to domestic destinations, but its reputation was tarnished by an accident on landing in Ratanakkiri last month. Nobody was seriously hurt, but the United Nations subsequently barred its staff from flying with the airline.

Royal Khmer is trying to rebuild its business after more than a year out of action. It offers flights to several destinations in South East Asia as well as Cambodia's tourist centre, Siem Reap.

Abandoned planes

The outlying parts of Phnom Penh Airport are a testament to the fate of most Cambodian airlines.

Idle Antonovs and Chinese Y7 passenger planes in several different liveries line up next to about 20 abandoned MiG fighter jets in various stages of decay on the weed-strewn concrete strip.

A clearly decommissioned President Airlines jet sits behind a fence in the middle of a well-kept garden.

The arrival of Air Asia and Jet Star Asia suggests that the remaining local carriers will have to improve quickly if they are not to go the same way. Cambodia's Tourism Minister, Lay Prohas, takes a pragmatic view.

"More and more people will now be able to afford to come to Cambodia," he said.

"To have Jet Star Asia and Air Asia is a wonderful thing for tourism. People will have more money to spend on other things, like accommodation, entertainment and souvenirs."

As tourism is the number two industry in Cambodia - and growing rapidly - the increased competition among South-East Asian airlines has come at exactly the right time.

Across the region, eyebrow-raising deals are on offer.

Air Asia's current promotion is for two million free tickets; or you could fly to Darwin in Northern Australia for one Singapore dollar with Tiger Airways, partly-owned by Singapore Airlines.

Passengers still have to pay the usual charges and taxes, but travel bargain-hunters will be hoping this golden era lasts rather longer than some of Cambodia's airlines.

I think the culprit for the argument is the word "jealousy", and the sentence that says KL is jealous. Competition yes, rivalry yes, but jealousy is too strong a word and it stereotyped a nation as a whole. And not that it is 100% true. At least not from a foreigner's point of view. Let Malaysians n Singaporeans decide. I suggest the word "envious". ;) Singapore is ahead and KL is envious, not jealous. PERIOD.

Btw, what happens to Singapore's LCC Terminal? Why isnt it open as scheduled?

On a side note (for information not for argument), AirAsia's initial success came from its domestic market. Malaysia has more cities/towns and remote areas, many areas where people simply preferred to travel by car. Strong domestic purchasing power also contributes to AirAsia's success. Its tagline, "Now Everyone Can Fly" is very rightly spot on to its initial Malaysian market. Who wouldnt want to fly somewhere with airfares as cheap as a city cab, or even cheaper? Singapore loses out in this as it doesn't have other "domestic" routes to support the business. AirAsia's strategy by courting local partners in neighbouring countries also bear fruits. Strong support and cooperation from the Malaysian government is also the backbone of AirAsia's success.

Simply put it, Singapore's LCCs struggle because there are too many of them with only little routes (or none) to share.

Malaysia to launch budget airline terminal March 23
10 February 2006

KUALA LUMPUR, Malaysia (AP) - Malaysia said Friday it will launch its new airport terminal for budget airlines on March 23, two days before neighboring Singapore's Changi Airport opens a rival low-cost wing.

The Low Cost Carrier Terminal, located at Kuala Lumpur International Airport, or KLIA, will initially be used by Southeast Asia's top budget airline AirAsia, but other carriers are expected to come on board, Transport Minister Chan Kong Choy said.

"We welcome other low-cost carriers to operate here. At the moment, we have received a few responses from other low-cost carriers," he was quoted as saying by national news agency Bernama after touring the terminal.

KLIA general manager Azmi Murad said parking and landing charges will be waived for new foreign low-cost carriers using the terminal.

Airlines also escape charges for aerobridges, which are not available at the new terminal, but all other charges -- including airport departure tax -- will remain the same, Azmi said.

He said AirAsia, currently the only budget carrier using KLIA, flew 4 million passengers last year, accounting for 17 percent of the 23.2 million-passenger volume at KLIA.

Malaysia decided to build the dedicated terminal to help the KLIA compete as a regional hub and counter competition from neighbors Singapore and Thailand.

Officials said the 108 million ringgit (US$29 million; €24 million) budget terminal has 30 parking bays to handle Boeing and Airbus aircraft, and can accommodate 10 million passengers a year -- while the one being built in Singapore can cater to 2.7 million passengers a year.

However, Singapore will launch its new low-cost wing at Changi Airport on March 25, and officials have said the terminal could expand to accommodate 5 million passengers a year.

^ 2 days apart LOL! :laugh:

SEPANG, SELANGOR, Fri.

Southeast Asia’s first dedicated budget terminal, the Kuala Lumpur International Airport low-cost carrier (LCC) terminal, will begin operations on March 23.

This is two days earlier than the opening of Singapore’s LCC terminal.

Transport Minister Datuk Seri Chan Kong Choy said the new terminal would boost plans to turn KLIA into a regional aviation hub.

"I am glad to announce that the new LCC terminal will be operational on schedule on March 23. It took us nine months from last June to complete construction works for the terminal.

"Work is now 97 per cent complete and the contractors have confirmed that they will be handing over the facility to Malaysia Airports Berhad on Feb 28.

"We will have a soft opening on March 9 to enable everyone, from government department and agencies, members of the public, taxi drivers and bus operators, to become familiar with the facility.

"From March 23, the terminal will be fully operational," he said, adding AirAsia would operate from there from that date. He was speaking after visiting the LCC terminal, located about 20km from the KLIA main terminal building.

Among those present were Deputy Transport Minister Datuk Douglas Unggah Embas, Malaysia Airports Holdings Berhad managing director Datuk Seri Bashir Ahmad and AirAsia group chief executive Datuk Tony Fernandez.

The LCC terminal, with parking space for 30 aircraft, is intended to be the hub for AirAsia, AirAsia Indonesia and AirAsia Thailand, along with other regional budget airlines.

Touted as among the largest in the region, it has the capacity to handle up to 15 million passengers annually.

Chan said a few international low-cost carriers had enquired about the terminal.

On connectivity between the main terminal building and the LCC terminal, Chan said there would be a free shuttle bus service every 15 minutes.

"However, if the need arises, the frequency of the service will be increased."

On taxi service, Chan said Entrepreneur and Co-operative Development Minister Datuk Khaled Nordin would announce soon whether city taxis would be allowed to serve the new terminal.

On airport tax to be imposed at the new terminal, he said the Government and MAHB were studying a proposal submitted by AirAsia, with a decision expected to be announced before March 23.

Commenting on the tax, Fernandez said: "It’s called a low-cost terminal, hence the rates should be low."

MAHB is awaiting approval from the Government to raise airport taxes from RM45 to RM65 for international passengers and RM6 for domestic departures

Back to the point, it does not really matter who opens first, the most important thing is that they can work together to allow cheap flights between the two cites.




Isn't it ironic that both cities would soon to have its own budget terminal but there isn't any direct budget flights between both :D

Malaysia's new low-cost aviation hub is safe: minister

KUALA LUMPUR, Feb 26, 2006 (AFP) - Malaysia's new low-cost aviation hub at Kuala Lumpur's international airport is safe for aircraft movement and will open as scheduled next month, a senior minister said Sunday.

"We never compromise on the issue of safety. We will begin operations on March 23," Transport Minister Chan Kong Choy was quoted as saying by Bernama news agency.

Chan was commenting on remarks made by air traffic controllers at Kuala Lumpur airport that safety may be compromised if the low cost terminal opens as scheduled.

The aviation hub will begin operations just three days ahead of rival Singapore's budget operation, to become Southeast Asia's first dedicated no-frills terminal.

The Singapore terminal at Changi Airport, which has already been completed, is scheduled to be operational on March 26.

The Malaysian government hopes the new facility will help turn Kuala Lumpur's international airport into a regional aviation hub, attracting at least five million passengers in its first year of business.

The president of Malaysia's air traffic control union, Wan Muhaimin Wan Jamil, said he feared the terminal would not be fully equipped by March 23.

"The tender has not even been awarded and it will take 10 months for all work to be completed at the traffic control tower.

"We have to control traffic manually when the day comes and that is going to be taxing on the staff," he was quoted as saying by the New Straits Times newspaper Saturday.

Wan Muhaimin warned that there was a shortage of air traffic controllers and the burden to operate manually would cause a strain on the staff and safety could be compromised.

Malaysia's own AirAsia is currently the only budget airline that has confirmed it will operate from the new facility.

AirAsia began operations at Subang airport near Kuala Lumpur but moved to KLIA, about 50 kilometres (30 miles) south of the capital, in July 2002 in line with the government's plan to make KLIA the main gateway for Malaysia.

The airline, which dominates the crowded Southeast Asian low-cost sector, wants to ride the travel boom not only in its home region of half-a-billion people, but also in the emerging China and India markets.

Lion Air will consider move to low-cost terminal
By ANNA MARIA SAMSUDIN
February 27 2006


ASIA'S first low-cost carrier PT Lion Air says it may relocate operations to the new low-cost carrier (LCC) terminal at the KL International Airport (KLIA) in Sepang if it can help the carrier significantly reduce costs.

The president-director of Indonesia's biggest budget carrier, Rusdi Kirana, said he has no qualms about moving to the new terminal even if it means having to operate next to one of his company's main rivals, AirAsia Bhd.

The LCC terminal opens on March 23.

"We have heard about the new (LCC) airport, but we do not have sufficient details as yet to make a decision on the matter.

"If operating out of the LCC terminal can significantly reduce our costs, we do not mind moving," he said when met in Kuala Lumpur last week.

This was the first time Rusdi had consented to be interviewed. He was in the city for the Cape Town Treaty reception, organised by the International Air Transport Association (Iata).

Malaysia is the eighth country to ratify the international treaty, which facilitates cross-border financing and leasing of large commercial aircraft and aircraft engines and protects the interest of financiers.

Lion Air, which Rusdi co-owns with his brother Kusnan Kirana, has been operating out of KLIA since 2000. It flies daily from Kuala Lumpur to Jakarta and from Penang to Medan.

It is looking at expanding its network in Indonesia as well as the region. Apart from Kuala Lumpur and Medan, it also flies into Singapore.

Rusdi said it is eyeing expansion into East Asian destinations such as Hong Kong.

It expects to begin service to the former British island colony by next year, after the delivery of its first 737-900ER (Extended Range).

"We are certainly eager to expand our routes, and we are waiting for the delivery of our new aircraft to do this," he said.

In July last year, Lion Air ordered 60 new 737-900ERs worth US$3.9 billion (RM14.5 billion). The first 737-900ER, which is the newest member of the world's best-selling Next- Generation 737 family, is scheduled for delivery in the first half of next year.

Rusdi said the new planes will be deployed on its expanded domestic routes. It currently flies to 50 destinations in Indonesia.

Lion Air operates a fleet of 34 aircraft comprising 20 MD80 series, five MD90 series, six 737-400s and three DHC-8-301 feeder aircraft.

^^ don't know if they're allowed to move there, technically - lion air isn't a lcc

Oh! This March!!! How fast it is!!!.Well It's good for KL.

Malaysia's new low-cost aviation hub is safe: minister

KUALA LUMPUR, Feb 26, 2006 (AFP) - Malaysia's new low-cost aviation hub at Kuala Lumpur's international airport is safe for aircraft movement and will open as scheduled next month, a senior minister said Sunday.

"We never compromise on the issue of safety. We will begin operations on March 23," Transport Minister Chan Kong Choy was quoted as saying by Bernama news agency.

Chan was commenting on remarks made by air traffic controllers at Kuala Lumpur airport that safety may be compromised if the low cost terminal opens as scheduled.

The aviation hub will begin operations just three days ahead of rival Singapore's budget operation, to become Southeast Asia's first dedicated no-frills terminal.

The Singapore terminal at Changi Airport, which has already been completed, is scheduled to be operational on March 26.

The Malaysian government hopes the new facility will help turn Kuala Lumpur's international airport into a regional aviation hub, attracting at least five million passengers in its first year of business.

The president of Malaysia's air traffic control union, Wan Muhaimin Wan Jamil, said he feared the terminal would not be fully equipped by March 23.

"The tender has not even been awarded and it will take 10 months for all work to be completed at the traffic control tower.

"We have to control traffic manually when the day comes and that is going to be taxing on the staff," he was quoted as saying by the New Straits Times newspaper Saturday.

Wan Muhaimin warned that there was a shortage of air traffic controllers and the burden to operate manually would cause a strain on the staff and safety could be compromised.

Malaysia's own AirAsia is currently the only budget airline that has confirmed it will operate from the new facility.

AirAsia began operations at Subang airport near Kuala Lumpur but moved to KLIA, about 50 kilometres (30 miles) south of the capital, in July 2002 in line with the government's plan to make KLIA the main gateway for Malaysia.

The airline, which dominates the crowded Southeast Asian low-cost sector, wants to ride the travel boom not only in its home region of half-a-billion people, but also in the emerging China and India markets.

They are still using the same control tower right? Except that they haven't equipped it with more equipment to handle all the additional budget flights from this separate terminal right. Why haven't they? Are they sure its safe?

^ no, i think they will adapt this version from "Fantasy Island." some1 will shout 'the plane.. the plane..' whenever one is approaching.. ha haaa ;)

5m passengers expected in first year
By Kevin Tan, 09 Mar 2006 9:23 PM

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_df2aeb01-cb73c03a-49871300-e33035c3/1/ChanKokChoy_inside.jpg

Transport Minister Datuk Seri Chan Kong Choy (left) and AirAsia chief
executive officer Datuk Tony Fernandes



Malaysia Airports Holdings Bhd (MAHB) expects five million passengers to use the low-cost carrier (LLC) terminal at the Kuala Lumpur International Airport (KLIA) in its first year of operations.

The LCC terminal, which will start operations on March 23, can accommodate up to 10 million passengers a year, and be expanded to handle up to 15 million passengers, said MAHB managing director Datuk Seri Bashir Ahmad. All AirAsia's flights will be relocated to the LCC terminal.

The terminal was completed five days ahead of schedule since work started in June 2005. It is located about 20km away by road from the KLIA main terminal building.

Bashir was speaking to reporters during a working visit to the LCC terminal. Also present were Transport Minister Datuk Seri Chan Kong Choy and AirAsia chief executive officer Datuk Tony Fernandes.

Bashir also said MAHB had identified another site near the KLIA in anticipation of any future need for another LCC terminal to be built. This terminal would be capable of handling up to 30 million passengers a year.

He said the KLIA main terminal had handled more than four million passengers of LCCs last year and was getting congested.

On whether the LCC terminal's completion was pushed forward to compete with Singapore, Bashir said MAHB wanted it ready earlier because of AirAsia Bhd's expansion, which would see it getting a new aircraft every month.

We are already congested at the main terminal. It's difficult for us to continue accommodating AirAsia. That is why we pressed for the government to have this terminal ready as soon as possible and we are pleased they were able to do so, Bashir said.

Fenandes said the LCC terminal will be a great place for us to make Malaysia a dominant low-cost carrier hub. It will give us all the tools required to enable us to have low fares and attract more people to come to Malaysia and fly AirAsia.

On Malaysian Airlines Bhd's (MAS) flight rationalisation plan, Fernandes said AirAsia had presented its case to the government on the possibility of taking over some of MAS domestic routes and would probably know the result within a week.

Since the LCC would operate on a point-to-point travel basis in line with the low-cost travel business model, there is no interlining arrangement between AirAsia and other airlines operating at the KLIA main terminal.

International passengers who require terminal transfers for their connecting flight must obtain custom clearance and claim their luggage prior to their check-in for the connecting flight at the other terminal.

However, there will be a free shuttle service for connecting-flight passengers between the LCC and the main terminal building.

Besides taxis and public buses, the LCC terminal also provides 1,100 open-air parking lots, which charged RM1 per hour for the first two hours and RM2 per hour for the subsequent hours.

On airport tax for the LCC, Chan said his ministry consulted relevant parties such as MAHB, AirAsia and the Finance Ministry on the matter.

"I will submit the recommendations to Cabinet next week for a final decision and endorsement. Subsequently we will make a decision," he added.

KL budget terminal set to be hub for low-cost flights
Singapore Business Times, March 18, 2006

Passenger traffic seen rising with AirAsia's rapid route expansion

By PAULINE NG

http://img96.imageshack.us/img96/4139/127qw1.jpg

Ready for launch: Malaysia's LCC Terminal is built to handle 10 million
passengers, compared to its Singapore counterpart's 2.7 million



MALAYSIA'S budget terminal could well become the region's leading low-cost-flight hub, fuelled by AirAsia's rapid expansion.

To be launched on Thursday, the LCC Terminal, which has been built to cater to 10 million passengers annually, expects to serve over five million passengers this year. In four years, it expects to reach its full capacity of 10 million passengers.

These projections are based on the forecast of the region's leading budget airline, AirAsia, which is currently the sole customer of the budget terminal, said Malaysian Transport Minister Chan Kong Choy.

At a press conference yesterday, he announced that the passenger service charge for domestic passengers at the new terminal would be RM6 and for international passengers, RM35.

Last year, AirAsia flew close to five million passengers. But the airline - formed only in December 2001 - would now be allowed to fly domestic trunk and non-trunk routes, which would increase its passenger numbers.

Malaysia announced on Thursday night that national carrier Malaysia Airlines and AirAsia would jointly operate its domestic aviation trunk routes - MAS would offer premium service and AirAsia, budget fare.

But what constitutes trunk routes - believed to be the key routes such as Penang, Johor Baru, Kota Kinabalu, Kuching and Langkawi - will be left to the airlines to decide.

Both airlines have until March 27 to revert to the government and yesterday Mr Chan declined to comment on what would occur if a decision could not be reached. But he said that he was confident both carriers would be able to 'come up with something beneficial to both and the aviation industry'.

The airlines will be given the flexibility to determine frequencies, capacity distribution, aircraft type and fare, under the supervision of the Transport Ministry. And that flexibility was precisely what MAS had asked the government to give it under its business turnaround plan when it proposed to take back the profit and loss for all domestic routes from government vehicle Penerbangan Malaysia.

The market believed Thursday's announcement would benefit AirAsia. The airline's share price rose six sen to RM1.76, while MAS dropped 10 sen to RM2.80.

Yesterday, Mr Chan sought to play down any perceived rivalry between Malaysia's and Singapore's low-cost carrier terminals.

'I think they complement each other. There's enough room for all the LCC terminal operators in this part of the world.'

Singapore's terminal - built to handle 2.7 million passengers yearly - will open three days after Malaysia's on March 26.

But AirAsia will undoubtedly play a key role in Malaysia's aspirations to be the leading hub for budget travellers. The airline is buying 40 Airbus aircraft with an option for 40 more.

So impressive has its growth been that KLIA was no longer able to accommodate its needs at the main terminal, said Bashir Ahmad, the managing director of Malaysia Airport Holdings, the airport's operator.

'We have a very large demand for low-cost travel in Malaysia for domestic and outbound travel- that's why we had to build a separate terminal to meet the specific requirements of the LCC,' he said.

Mr Chan added that the budget terminal could be modularly expanded to handle 15 million passengers should passenger volumes increase dramatically. 'We don't need to wait until 2010.'

From the pics I've seen so far, the terminal doesn't look all that bad

Low-cost carrier terminal opens today

Mar 23, 06 3:47am


Malaysia is set to open today its no-frills airport terminal for Asia's booming budget aviation sector, which it hopes will help make Kuala Lumpur a regional transport hub.

- Cost RM108 million
- AirAsia first to use

:cheers:

congrats to air asia and klia on the opening of the new LCCT !!

Any pictures??? Has no one been there yet??? Very few pictures posted here so far...

MAS And AirAsia Must Work As Smart Partners, Says PM

March 23, 2006 19:01 PM

SEPANG, March 23 (Bernama) -- Malaysia Airlines (MAS) and low-cost carrier AirAsia must work as smart partners for their mutual benefit, Prime Minister Datuk Seri Abdullah Ahmad Badawi said today.

He said both airlines would earn from the smart partnership and indirectly the nation would also benefit from their collaboration.

"MAS and AirAsia have no problem, but if there is any, it can be solved through discussion and I believe this is a more effective way," he said in his speech at the official launch of the Low Cost Carrier (LCC) terminal at the Kuala Lumpur International Airport (KLIA) here Friday.

Abdullah also hoped that both airlines would continue to raise their service standards and strived for excellence, glory and distinction.

He said the success of both airlines were not solely dependent on their leadership but also on all levels in MAS and AirAsia.

-- BERNAMA


http://klia.com.my/LCCTerminal/lccimages/map.gif

LCC TERMINAL – Dimensions
Size of the terminal 35,290 sq meters
a. Check in area 2,650 sq meters
b. International Departure Hall 3,240 sq meters
c. International Arrival Hall 4,340 sq meters
d. Domestic Departure Hall 4,430 sq meters
e. Domestic Arrival Hall 1,900 sq meters
f. Public Concourse Main Area 4,355 sq meters
g. Public Concourse International
Arrival area 325 sq meters
h. Common, Ramp and circulation 6,760 sq meters

Why does the news keep reporting that its 20km from KLIA? It doesn't look that far, though it does involve a huge detour for passengers originating from KLIA.

edited

Malaysia Opens Purpose-Built Budget Airline Terminal
23 March 2006

SEPANG, Malaysia (AP)--Malaysia opened Asia's first purpose-built budget airline terminal Thursday, as part of government efforts to turn the country into a regional aviation hub amid competition from neighbors Singapore and Thailand.

"This is a new industry that we must make a success, especially to boost tourism," said Prime Minister Abdullah Ahmad Badawi in a speech while inaugurating the MYR108 million facility.

The new terminal will be home to Asia's largest no-frills carrier, AirAsia. It is not immediately clear if other airlines are intending to use the facility but transport minister Chan Kong Choy said the administration would attempt to lure more airlines to Kuala Lumpur.

"It is this government's desire to turn Malaysia into a regional low-cost travel hub," said Transport Minister Chan Kong Choy. "We must take this golden opportunity to lure more companies to fly to Malaysia."

Malaysia, Singapore and Thailand are in direct competition for Asia's cutthroat and booming budget airline business, which analysts say is likely to grow rapidly in the next few years.

Singapore's new budget terminal opens Sunday.

"It is to be expected," Abdullah said of the race between Malaysia and Singapore. "In any competition, there will be some degree of rivalry."

Abdullah cut a ribbon to officially open the terminal and greeted 130 passengers arriving at the airport from the resort island of Penang. It was the first of 19 flights scheduled Thursday.

The Malaysian leader said immigration, customs and transport services at the terminal have to remain at a high standard even if it served budget travelers.

Separately, the International Air Transport Association asked Malaysia for assurances that passengers using the main airport would not be subsidizing those using the low-cost terminal.

Airport tax at the budget terminal, is 22% lower at MYR35.

Describing the difference in airport tax as unfair, the IATA also demanded that the budget terminal be available for any carrier wishing to use its facilities.

"The first priority of any airport should be efficiency and lower charges for all airlines. ... there should be no discrimination for charges with common service levels, such as security," an IATA statement said.

Malaysia's premier said the lower fees were solely to attract airlines to use the new no-frills terminal, and nothing more.

The government decided to build the dedicated terminal to help Kuala Lumpur International Airport compete as a regional hub and counter competition from Singapore and Bangkok, which is slated to open a new airport in the middle of the year.

The terminal will be able to service up to 10 million passengers a year, around four times Singapore's capacity.

The LCC Terminal certainly looks functional, but IMO it looks quite bad. No offence. But I guess cheap airport taxes and increased budget flights to more locales make up for it...

I will be using both Singapore and Kuala Lumpur's budget terminals in Augsust as I have flights booked with Tiger Airways and Air Asia. :)

I will be using both Singapore and Kuala Lumpur's budget terminals in Augsust as I have flights booked with Tiger Airways and Air Asia. :)

Do give us a full report of your trip in August!!!!!!!!!!!!!!!!!! :)

^ OK :okay:

I wouldn't expect to see an architectural masterpiece if I'm paying a cheap fare to fly with a budget carrier. That being said, Stansted is an exception being a very nice and spacious facility.

Good for KL as being a hub of aviation in the region.

Malaysia opens Asia's first low-cost carrier terminal

By Kang Siew Li
March 24 2006

http://www.btimes.com.my/Current_News/BT/Friday/Corporate/BT559185.txt/Article/Current_News/BT/Images/dailyn/lcct.jpg



NATIONAL carrier Malaysia Airlines (MAS) and budget airline AirAsia Bhd have been urged to work together to bring more people into the country.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said both airlines can be a "champion" in their respective market segment.

"The two airlines are competing for different purposes. AirAsia is competing to be the best in the low-cost carrier (LCC) segment and MAS as a full-service carrier (FSC). Both airlines have to do their best in their respective market," he told a news conference after opening Asia's first LCC terminal at the KL International Airport (LCCT-KLIA) in Sepang yesterday.

He added that tourism is a major income earner for the country, and attracting tourists is a top priority which is only possible with the two airlines operating and working together.

Abdullah also said that MAS and AirAsia are still in discussions on the rationalisation of the domestic sector and is confident that both airlines can reach a win-win situation or "smart partnership".

The Prime Minister has given the two airlines until Monday to submit their plan under the Government's domestic air rationalisation policy.

The Government is of the view that the rationalisation process of the domestic flights sector is needed to ensure the long-term success of MAS and AirAsia.

Meanwhile, Abdullah expressed satisfaction with the new LCCT-KLIA, but warned that maintenance on the airport must be a continuous process.

"Our (Malaysians) maintenance culture is poor. This shouldn't be. These facilities are for all and must always be functional, safe and comfortable," he said.

He added that some degree of rivalry is to be expected between the LCCT-KLIA and the Singapore budget airline terminal at Changi, which is due to open in two days.

Also present at the event was Datuk Tony Fernandes, AirAsia group chief executive officer.

Fernandes said it is AirAsia's intention from day one to work with MAS.

"I think I have a good relationship with the CEO (chief executive officer) of MAS (Idris Jala). Let's see (what the restructuring of the domestic routes will be). I always believe in a win-win situation and that we (AirAsia and MAS) can help each other tremendously.

"A strong MAS is good for AirAsia and a strong AirAsia is good for MAS," he said.

MAS and AirAsia urged to work together to attract more tourists into Malaysia

IATA seeks non-discriminatory treatment for passengers and airlines at KLIA
23 March 2006
M2 Presswire

The International Air Transport Association (IATA) demands assurances from Malaysia Airports Holding Berhad (MAHB) that passengers and airlines using the main terminals at Kuala Lumpur International Airport (KLIA) will not be subsidizing those using the low cost carrier terminal (LCCT). IATA also demands that the LCCT be available for any carrier wishing to use its facilities.

Last week, MAHB announced a lower departure tax of RM35 for international passengers using the LCCT. At the same time MAHB failed to give any assurance that the LCCT would be available for use by any airline.

The first priority of any airport should be efficiency and lower charges for all airlines. Where different levels of service are provided, cost-related charges can be acceptable, provided there is accurate cost-allocation and transparency. There should be no discrimination for charges with common service levels, such as security.

KLIA's unilateral announcement contravenes the charging principles adopted by the International Civil Aviation Organisation (ICAO). ICAO principles state that all charges should be based on sound economic principles and be reached through consultations with airlines. ICAO also requires transparency and cost relatedness in the charges.

IATA is ready to work together with MAHB and the Ministry of Transport to ensure an efficient and fair charging model in accordance with internationally agreed principles. IATA urges MAHB to engage in consultations with airlines before any further decisions are made.

Notes for Editors

IATA and the Civil Aviation Authority of Singapore (CAAS), which operates Singapore's Changi Airport, had held consultations with regards to the Singapore low cost terminal. Following the consultations, IATA accepted CAAS' proposals on the operating and charging principles for the low cost terminal. IATA also received CAAS' commitment that all airlines meeting the operational criteria, including full service carriers, will be able to operate from the low cost terminal.

M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data prepared by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

Albert Tjoeng, Manager, Corporate Communications Asia Pacific, | International Air Transport Association |

Thai AirAsia likely to reduce airfares to KL
25 March 2006
Bangkok Post

Sepang, Malaysia - Thai AirAsia's fares to Kuala Lumpur could be reduced shortly, thanks to lower ground handling costs charged by Malaysia's new budget terminal that opened on Thursday.

Other affiliated carriers - Malaysia's AirAsia and AirAsia Indonesia - which operate in and out of LCC Terminal (LCCT), will also benefit from lower charges.

"Of course, we will pass on the savings to passengers. We have not got the final numbers yet, but the fares will be lower," AirAsia Bhd group chief executive officer Tony Fernandes, told the Bangkok Post.

He said that LCCT's airport tax was 10 ringgit (about 105 baht) lower than at Kuala Lumpur International Airport (KLIA).

Malaysia Airports Holdings Bhd (MAHB) currently charges 45 ringgit for international passengers and six ringgit for domestic departures at KLIA. In comparison, the fees at Bangkok International Airport are 500 baht for international flights and 50 baht for domestic ones. They will go up to 700 baht for international and 100 baht for domestic next February.

Thai AirAsia, owned by AirAsia and Asia Aviation, a Bangkok-registered firm controlled by Shin Corp, operates one Boeing 737-300 flight a day from Bangkok to Kuala Lumpur.

AirAsia and its Thai and Indonesian units will initially operate more than 150 flights a day from the 108-million-ringgit LCCT, located 20 km from the main terminal building of KLIA. That number would double over the next few years as the group expanded its operations.

The group is now putting 20 planes, mostly B737-300s and a few Airbus A320s, through the LCCT which has the capacity to accommodate up to 40 aircraft.

KLIA LCCT

http://i3.photobucket.com/albums/y59/payrol/toLCC.jpg
there are lots of this banners along the highway, so no one will lost their way to LCCT

http://i3.photobucket.com/albums/y59/payrol/checkin.jpg
morning traffic...lots of pax. cheking-in

http://i3.photobucket.com/albums/y59/payrol/unoccupycheckin.jpg
unoccupy check in counter..Air Asia occupy check in booth number 1 till 45

http://i3.photobucket.com/albums/y59/payrol/domestic.jpg
domestic departure hall ...there's a retail outlet inside..

http://i3.photobucket.com/albums/y59/payrol/International.jpg
International departure hall

http://i3.photobucket.com/albums/y59/payrol/Internationalarrival.jpg
international arrival hall

Feeling hungry?

http://i3.photobucket.com/albums/y59/payrol/AsianKitchen.jpg
u want Asian Kitchen?

http://i3.photobucket.com/albums/y59/payrol/McD.jpg
Mcdonald?

http://i3.photobucket.com/albums/y59/payrol/CoffeeBean.jpg
or you want to have coffe latte??

http://i3.photobucket.com/albums/y59/payrol/BusBooth.jpg
this booths available at both international and domestic arrival halls..

http://i3.photobucket.com/albums/y59/payrol/SkyBus.jpg
getting to the LCCT is easy..can use the Skybus..

http://i3.photobucket.com/albums/y59/payrol/AirportLiner.jpg
or can use the airport Liner from Jalan Duta/Chan Sow Lin

From: http://sg.biz.yahoo.com/060325/1/3zmgf.html
_____________________________
Sunday March 26, 1:46 AM
Budget terminals boost Asia's low-cost airline sector

Southeast Asia's low-cost airline sector is set to continue its phenomenal growth with this week's opening of the region's first dedicated budget terminals in Singapore and Malaysia, analysts said.

The combined 57 million US dollar investment for the facilities by the two neighbours is a boost for the region's budget airlines which have blossomed despite initial scepticism at the no-frills concept, they said.

"Low-cost terminals are a natural extension of the budget phenomenon we've seen in the past 18 to 24 months," said Shukor Yusof, an aviation analyst with Standard and Poors in Singapore.

Malaysia on Thursday opened Southeast Asia's first dedicated no-frills terminal built at a cost of 29.2 million dollars. It can handle 10 million passengers a year.

Next door in Singapore, a 27.8 million dollar facility starting operations on Sunday can handle 2.7 million passengers annually and is designed to serve five million after future expansion.

"Low-cost carriers are here to stay and will be a significant part of the regional aviation industry," Yusof said.

"The development of two dedicated terminals also illustrates low-cost carriers' growing presence in the airline sector, having transformed it via low fares and emerging route networks."

The two terminals each have only one committed user, AirAsia for the Malaysian facility and Tiger Airways in Singapore. This has not dented analysts' upbeat outlook for the regional budget airline sector.

"I don't think it is much of a concern," said John Koldowski, director of the strategic intelligence centre at the Bangkok-based Pacific Asia Travel Association.

"The low-cost carriers when they first came out, many said it was a fad... well, it has lasted and in fact it has consolidated.

"They certainly stimulated the sector and markets and consumers obviously like what they are receiving."

Growth in the low-cost sector partly explains why industry watchers expect the Asia-Pacific region to lead global growth in air passenger traffic over the next 20 years.

While Malaysia and Singapore are fierce economic rivals and both aim to be the hub for low-cost airlines, analysts said the two terminals will only spur growth in the sector.

"I don't think the proximity of the terminals has too much bearing, especially with low-cost flights between the two countries not currently allowed," said Richard Pinkham, a Singapore-based consultant with the Centre for Asia Pacific Aviation in Sydney.

"As both carriers are principally point-to-point travel at this point, it seems not overly likely that the two low-cost terminals will be in competition with one another for passengers, especially with a five-six hour drive separating them," Pinkham said.

Malaysian Prime Minister Abdullah Ahmad Badawi, who opened the terminal at Kuala Lumpur, welcomed rivalry.

"In any competition there would be some degree of rivalry, it's only to be expected," he told reporters when asked about Singapore's facility.

Before the birth of AirAsia in December 2001, budget carriers in Southeast Asia focused mainly on domestic routes but the roaring success enjoyed by the Malaysia-based carrier in servicing regional destinations was the catalyst for the setup of similar outfits, especially in Singapore.

Because they charge ultra-cheap fares, budget airlines do not provide meals or other services but travellers can pay if they want water or coffee.

Similarly, the new budget terminals do not offer all the elaborate facilities found in modern airports.

AirAsia chief executive Tony Fernandes was thrilled with the new home for his carrier which now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

"It's a dream come true for us. A few years ago we were just a two-plane operation and now we have our own home," said Fernandes, whose business model has been increasingly imitated by national carriers and a host of new low-cost entrants.

He dismissed Singapore's no-frills terminal because of its smaller capacity.

"We are not here to compare with Singapore. We are happy with this place."

His closest rival, Tiger Airways, sees the budget terminal as a step forward for the sector.

"Having a budget terminal allows low-cost airlines such as Tiger Airways to offer low, low fares on a sustainable and consistent basis," said Tony Davis, chief executive of the carrier which is 49 percent owned by Singapore Airlines.

"By having a dedicated terminal, budget airlines would possess a significant cost advantage which gives a competitive edge over other airlines," he said.

Tiger Airways' ground costs will be cut by more than 50 percent by using the new facility at Changi Airport, he said.

The new LCCT is okay based on the pictures.. Not bad at all.

Malaysia to build new low-cost airline terminal
9 August 2007

KUALA LUMPUR, Malaysia (AP) - Malaysia will build a second low-cost airport terminal in three to four years because the existing one is nearing its capacity of 10 million passengers a year, the deputy prime minister said.

The Cabinet committee on public transportation has agreed to the construction of the new terminal as well as the immediate expansion of the present low-cost carrier terminal or LCCT, Deputy Prime Minister Najib Razak said late Thursday.

He said the new terminal, which will be able to handle 30 million passengers a year, will be located closer to the main Kuala Lumpur International Airport than the present LCCT, which caters mostly to budget carrier AirAsia.

The new terminal will be connected to Kuala Lumpur International Airport by an express train, and the old terminal will be converted into a cargo terminal. Plans for the new LCCT will be completed within a month, Najib said.

No other details were provided.

http://img31.picoodle.com/img/img31/9/8/12/f_524m_8b2599b.jpg

Cargo plan for low-cost terminal


KUALA LUMPUR: The existing low-cost carrier terminal (LCCT) may be converted into a cargo handling area once the new LCCT has been built.
Transport Minister Datuk Seri Chan Kong Choy said this would be one of the options when a new LCCT is built in five years.

"One of the options is to convert to cargo handling as the current LCCT is near the cargo area," he said after opening an art exhibition entitled "The Arts of Wong Teng Hee — A 70 Retrospective Exhibition".

On Thursday, Deputy Prime Minister Datuk Seri Najib Razak announced that the new LCCT could cater to up to 30 million passengers a year.

It would be built close to the Kuala Lumpur International Airport and would have rail links.
Chan explained that the current LCCT was always meant to be a temporary structure.

"At that time, we needed an LCCT urgently. We could not afford to wait for four years for a proper terminal to be built. Because of demand, we set this up within eight months in 2005."

He said the existing LCCT was projected to receive 7.5 million passengers this year and expected to reach its maximum capacity of 15 million in three years.

While the new terminal is being constructed, expansion works would be undertaken to ensure the current LCCT could accommodate the increased volume of passengers, he added.

This included improving the feeder bus service between the terminal and the KLIA.

Chan: LCCT a temporary solution
Monday August 13, 2007


KUALA LUMPUR: The present Low Cost Carrier Terminal (LCCT) at the KL International Airport (KLIA) was never meant to be a permanent terminal, Transport Minister Datuk Seri Chan Kong Choy said yesterday.

“The present LCCT, we needed it urgently, but it was never meant to be a permanent terminal from day one,” he said when explaining the rationale for the decision to build a new LCCT, which can cater up to 30 million passengers a year, close to the KLIA.

Chan also pointed out the existing RM108mil terminal could not be expanded due to space constraints.

“We need a new permanent LCCT to cater for the needs of the increasing number of budget carrier passengers as the present terminal will reach its 15 million-a-year passenger capacity in two years’ time,” he said after opening the Arts of Wong Teng Hee: A 70 Retrospective Exhibition.

Chan said the existing terminal was already congested with almost 10 million passengers a year since it opened in March last year.

“The new LCCT will have a very big potential when it is completed in four to five years’ time. It will also have room for expansion,” he said.

An industry expert said, the new LCCT project, announced by Deputy Prime Minister Datuk Seri Najib Tun Razak on Thursday, would cost about RM1.7bil.

Asked what would happen to the existing LCCT, which was completed in just eight months, Chan said several options were being considered, including converting it into a cargo terminal. – Bernama

by kenfranc2

http://farm2.static.flickr.com/1375/1078943771_313a42251e_o.jpg

http://farm2.static.flickr.com/1264/1078943751_7597059417_o.jpg

Tune hotel at the LCCT by late 2008
By Anna Maria Samsudin
August 16 2007


The presence of a budget hotel at the low cost carrier terminal will help make KLIA the hub of budget travel, says a Tune Hotels director

BUDGET travellers using the low cost carrier terminal (LCCT) in KL International Airport (KLIA) will not have to search far for quality no-frills accommodation with the launch of Tune Hotels Sdn Bhd's new outlet - the Tune Hotels.com LCCT - next year.

With an estimated investment of RM20 million, the hotel is due to start operation by late 2008, in time for 20 million passengers that are expected to use the budget terminal.

Spread over an area of 4,046.86 square metres on land leased from airport operator Malaysia Airports Holdings Bhd (MAHB), the hotel will have 228 rooms as well as food and beverage and retail outlets.

Tune Hotels director Datuk Tony Fernandes said the presence of a budget hotel at the LCCT would help make KLIA the hub of budget travel.

And looking at the projected number of passengers using the budget terminal, he is optimistic of a high occupancy rate at the hotel.

"We are happy with the support shown by MAHB. It certainly shows that they are indeed committed in the quest of turning KLIA into an LCC hub in Asia," he told reporters after the MoU signing between Tune Hotels and MAHB for the design and construction of Tune Hotels.com LCCT in Kuala Lumpur yesterday.

MAHB keen on more Tune Hotels near LCCTs
16-08-2007:


http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_6fa770ed-cb73c03a-d647d800-d10b8040/1/CHU_inside.jpg

From left: Tune Hotels.com co-founder and director Dennis Melka,
Fernandes, Bashir, Tune Hotels.com director Datuk Seri Kalimullah Hassan
and MAHB commercial services GM Umar Bustamam at the signing of the
MoU. Photo by Chu Juck Seng

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is keen to partner with no-frills Tune Hotels.com to build more Tune Hotels in the vicinity of low-cost carrier terminals (LCCTs).

MAHB managing director Datuk Seri Bashir Ahmad said: “That is a possibility, but that depends on the availability of the land and where there is a need to have the hotel.”

Bashir was speaking to reporters at the signing of a memorandum of understanding (MoU) here yesterday between MAHB and Tune Hotels.com for the leasing of land to the latter to build a hotel near the KL International Airport’s (KLIA) LCCT.

Tune Hotels.com founder Datuk Tony Fernandes said: “We will also build another hotel in Kota Kinabalu and hopefully soon in Kuching and Penang and I hope we (MAHB and Tune Hotels.com) can work together to make Malaysia a hub for low-cost airlines.”

He said: “If you look at AirAsia, 18 million people are going to fly AirAsia – 10 million passengers will be going through the LCCT, so occupancy would not be a problem for us.”

“With the plans that MAHB have with the new terminal, I really do believe that we will have two to three Tune Hotels there (at KLIA),” he added.