Talks for LCCT in Penang

PENANG: The state government is talking with Malaysia Airports Holding Bhd (MAHB) and the Department of Civil Aviation (DCA) on land for a Low-Cost Carrier Terminal (LCCT) in Bayan Lepas.

“We are holding frequent and serious discussions with AirAsia and negotiating with MAHB and DCA on how to get a big area for the LCCT,” Chief Minister Tan Sri Dr Koh Tsu Koon told newsmen after launching the Chinese New Year celebration at Universiti Sains Malaysia yesterday.

He said the state welcomed more AirAsia direct flights linking Penang to China, India and Indonesia, apart from the existing direct flights to Kuching and Kota Kinabalu.

On Wednesday, AirAsia group chief executive officer Datuk Tony Fernandes said he was optimistic that negotiations on airport charges for the setting up of an AirAsia hub in Penang would conclude in the next six months.

The Star 9th February 2007

http://thestar.com.my/news/story.asp?file=/2007/2/9/nation/16827209&sec=nation

huh? wat a LCCT in Penang..do we need that? are they serious? Penang international airport is only the third busiest airport in Malaysia behind kk. i feel that the airport is still sufficent to cope with the passenger..furtheremore we dont hv many air asia flight that need another terminal. and where are we going to get the land?

i think we still dont need it not untill another few years...

Dr Koh ah Dr Koh...pls dont make those silly idea...spend those money on renovating the komtar better..and pls return the glory of penang. when we hv more tourist then only talk bout this la...

and most importantly..built the monorail first la...dont talk crap!!!!!!!!!

not so sure the need of LCCT at PEN...what Pablo said its true...not that many AK flight from PEN...unlike BKI or KCH
but the main terminal...really need to upgrade it...

Oh...another LCCT....

I tot Penang had many flight from thailand and indonesia.....

actually, i support the air asia, i believe future air asia will set up more direct flight for other country and bring more tourist.


Pablo, for renovating the komtar, actually the state government already mention last year, and decide to spend few million on it,but....haha not yet see anything happen after half year.....

fairul, the upgrade for terminal also already mention last year by Malaysia Airport,and also the same case with komtar renovating.

not so sure the need of LCCT at PEN...what Pablo said its true...not that many AK flight from PEN...unlike BKI or KCH
but the main terminal...really need to upgrade it...

Wasn't the terminal only upgraded a few years ago?

With regards to the LCCT, I think it might be a good idea. Always thought Penang was under served. If Air Asia has big plans for another hub, Why not? Penang folks before always had to transit at KLIA or another airports for regional destinations. Hopefully Air Asia could bring the aviation boom that Penang deserves.

16-11-2006: Penang airport gets longer runway, more check-in counters
By Jonathan Chen

The Penang International Airport (BLIA) is upgrading its facilities, which includes doubling the number of check-in counters to 72 and spending RM10 million to improve the runway.

Its senior manager Abdul Wahab Mohd Yusof said on Nov 15 that work to upgrade the runway is scheduled to be completed by end-December or early January.

He said the upgrading will include resurfacing and extending the runway to accommodate bigger aircraft such as the Boeing 747-400. Apron parking bay would also be constructed soon to park the Boeing 747-700s.

The airport would also have an additional 38 check-in counters to accommodate the higher volume of passengers, especially during peak periods. There are 32 check-in counters now.

“We have found that our current facilities will soon be unable to facilitate passenger check-ins during peak hours from 5.30am-9am and 5pm-8pm,” he said. Work to install new counters will start next month.

“Our current passenger traffic flow here is three million passengers per year. We will be looking at a 16.7% increase in passenger traffic flow next year,” Abdul Wahab said.

On Penang’s second bridge linking Batu Maung to Batu Kawan, Abdul Wahab said their cargo operations could be relocated to Jalan Garuda in Batu Maung as cargo traffic is expected to increase when the bridge is completed by 2011. (theedgedaily)

i wonder where will they get the land for the LCCT?? Penang Airport definitely can't expand in that kind location.

wheather Penang need the LCCT, i'm not too sure about that. i think what Subangite said might be true though, lots of flights from Penang needs to go through KLIA

16-11-2006: Penang airport gets longer runway, more check-in counters
By Jonathan Chen

The Penang International Airport (BLIA) is upgrading its facilities, which includes doubling the number of check-in counters to 72 and spending RM10 million to improve the runway.

Its senior manager Abdul Wahab Mohd Yusof said on Nov 15 that work to upgrade the runway is scheduled to be completed by end-December or early January.

He said the upgrading will include resurfacing and extending the runway to accommodate bigger aircraft such as the Boeing 747-400. Apron parking bay would also be constructed soon to park the Boeing 747-700s.

The airport would also have an additional 38 check-in counters to accommodate the higher volume of passengers, especially during peak periods. There are 32 check-in counters now.

“We have found that our current facilities will soon be unable to facilitate passenger check-ins during peak hours from 5.30am-9am and 5pm-8pm,” he said. Work to install new counters will start next month.

“Our current passenger traffic flow here is three million passengers per year. We will be looking at a 16.7% increase in passenger traffic flow next year,” Abdul Wahab said.

On Penang’s second bridge linking Batu Maung to Batu Kawan, Abdul Wahab said their cargo operations could be relocated to Jalan Garuda in Batu Maung as cargo traffic is expected to increase when the bridge is completed by 2011. (theedgedaily)

ic...so they will occupy the small piece land as the expansion plan....if Penang terminal need to be expanded in the future to accomodate more gates...the MAS Cargo area need to be remove and centralise the cargo center...MAS Cargo+ Second Cargo center across the runway...

actually, i support the air asia, i believe future air asia will set up more direct flight for other country and bring more tourist.


Pablo, for renovating the komtar, actually the state government already mention last year, and decide to spend few million on it,but....haha not yet see anything happen after half year.....

fairul, the upgrade for terminal also already mention last year by Malaysia Airport,and also the same case with komtar renovating.


i know that they have mentioned bout it, guess wat..... another crap that they have mentioned...and wat i want them to do is refurnish the whole building...not just '' oh there is a sink, lets settle that side'' change part of the celling...do part of the floor...this is like throwing the money into the sea..do u think the shoppers will come back just buy doing this thing.. Komtar need a serious touch up..the interior must have totally a new look..a new modern mall and a new modern office.

and they have done this in few years back..u and me and every1 know the result. is there any changes?

in the future is a yes to hv another terminal..but i just feel that there are still many things that need them to do b4 set up a LCCT. they can use the money to upgrade our tourist spot or create another new tuorist spot which are lacking out. and the most importantly transportation...the PORR, monorail, tram, our new bus system...

Dr Koh..u promise us a lot of things.....dont just talk but do nothing!!!!!!

i know that they have mentioned bout it, guess wat..... another crap that they have mentioned...and wat i want them to do is refurnish the whole building...not just '' oh there is a sink, lets settle that side'' change part of the celling...do part of the floor...this is like throwing the money into the sea..do u think the shoppers will come back just buy doing this thing.. Komtar need a serious touch up..the interior must have totally a new look..a new modern mall and a new modern office.

and they have done this in few years back..u and me and every1 know the result. is there any changes?

in the future is a yes to hv another terminal..but i just feel that there are still many things that need them to do b4 set up a LCCT. they can use the money to upgrade our tourist spot or create another new tuorist spot which are lacking out. and the most importantly transportation...the PORR, monorail, tram, our new bus system...

Dr Koh..u promise us a lot of things.....dont just talk but do nothing!!!!!!

cool down...haha:lol:

we all know how they work...

As i know. The airport not own by Penang State government, the state government only in change for approval ,support and monitor the project. so the cost not with the State government. if air asia set a regional hub here, setup more direct flight, that will be advantages for penang.

But Komtar is diffrent, as i know also, komtar own by penang state government. so the renovating of komtar is with their hand.

Penang had been chosen as the Northern Hub as AK is negotiating wif MAB over the airport tax. Penang is undeserved as of now but the plan of expansion is there. Tony had been hinting on increased flight frequencies on the KUL-PEN sector and once a hub is established, we might get flights to China and HK via macao, there are good demands for those sectors.In the south east asian front, Indonesia can be well served. AK would also be able to serve more domestic routes for example Pen-langkawi,kuantan,and borneo.

The terminal itself is quite small,and if we see an increase in the number of AK flights, the parking bays may not be able to cope wif the demand. The best idea would be to shift the Cargo Complex to the area near Kompleks Kargo Kedua, and to build a LCCT there and join it up to the main terminal. Other options would be to build the LCCT near the MAS vehicle repair yard, but it would be far from the main terminal.

huh? wat a LCCT in Penang..do we need that? are they serious? Penang international airport is only the third busiest airport in Malaysia behind kk. i feel that the airport is still sufficent to cope with the passenger..furtheremore we dont hv many air asia flight that need another terminal. and where are we going to get the land?

i think we still dont need it not untill another few years...

Dr Koh ah Dr Koh...pls dont make those silly idea...spend those money on renovating the komtar better..and pls return the glory of penang. when we hv more tourist then only talk bout this la...

and most importantly..built the monorail first la...dont talk crap!!!!!!!!!


First, does that mean that Penang has been chosen as Northen Hub for AK? Can someone help me with this?

Well, I think the purpose of having a LCCT in Penang is that AK could possibly pay a lower airport tax compared to the main airport. I think Penang International Airport charges pretty high airport tax.

penang is definently underserved by AK. The most ironic thing about Penang Airport is that most if not all the international flights are operated by foreign carriers( Lion Air, Adam Air, Cathay, China Southern, Korean Air, China Airlines, Singapore Airlines , Thai Airways international). The only international route that MAS operates is PEN - Medan.

cool down...haha:lol:

we all know how they work...

As i know. The airport not own by Penang State government, the state government only in change for approval ,support and monitor the project. so the cost not with the State government. if air asia set a regional hub here, setup more direct flight, that will be advantages for penang.

But Komtar is diffrent, as i know also, komtar own by penang state government. so the renovating of komtar is with their hand.


yeah..i know that..but isn't it the state government have to pay on builidng the LCCT? i might be wrong, pls correct me..if not who is in charging to pay it? the upgrading of the current airport is pay by the government right?

it is actually a good news to hear that AK going to set up a regional hub here..and i understand the advantages. But it is just not the right time, and especially if it consume alot of money from the government.:)

penang is definently underserved by AK. The most ironic thing about Penang Airport is that most if not all the international flights are operated by foreign carriers( Lion Air, Adam Air, Cathay, China Southern, Korean Air, China Airlines, Singapore Airlines , Thai Airways international). The only international route that MAS operates is PEN - Medan.


MAS flies a single PEN-SIN daily.

yeah..i know that..but isn't it the state government have to pay on builidng the LCCT? i might be wrong, pls correct me..if not who is in charging to pay it? the upgrading of the current airport is pay by the government right?

it is actually a good news to hear that AK going to set up a regional hub here..and i understand the advantages. But it is just not the right time, and especially if it consume alot of money from the government.:)

Malaysia Airports Holding Bhd (MAHB) and the Department of Civil Aviation (DCA)

MAB Ready To Open Second LCCT In Penang
April 22, 2007 18:12 PM

PENANG, April 22 (Bernama) -- Malaysia Airports Berhad (MAB) is ready to open a second Low Cost Carrier Terminal (LCCT) in Penang if requested by the Transport Ministry.

MAB senior general manager (Corporate Planning) Datuk Mahat Samah said discussions were being held with various parties, including the Transport Ministry, on the proposed second LCCT.

He was responding to Penang Chief Minister Tan Sri Dr Koh Tsu Koon's statement yesterday that the state government would allocate a 36-hectare site at the Bayan Lepas International Airport to build the LCCT, the second in the peninsula after the one at the KL International Airport.

Earlier, when opening a motivational programme at Sekolah Menengah (SM) Batu Maung here, Mahat said MAB had chosen two schools near the Bayan Lepas airport for its smart school programme.

The SM Batu Maung and Sekolah Kebangsaan Batu Maung would receive an allocation of more than RM500,000 over three years to carry out activities to motivate students to excel.

-- BERNAMA

^^ Second LCCT?? Not the third one meh?? Yesss....I noe in Peninsula, it is in second but they did said after the KLIA LCCT...After klia LCCT is KKIA one mah rite??

Btw....congratzzz!!!

^^ Second LCCT?? Not the third one meh?? Yesss....I noe in Peninsula, it is in second but they did said after the KLIA LCCT...After klia LCCT is KKIA one mah rite??

Btw....congratzzz!!!

HELLO?? Penisula... KK is not in Penisula... so if Penang has LCCT... that will ultimately become the second one in PENISULA...
hehehe:nuts:

Tight-lipped over setting up of LCCT
Monday April 23, 2007
TheStar


PENANG: Low-cost national carrier Fire-fly Sdn Bhd is tight-lipped over reports that AirAsia has been given the nod to set up and operate the Low-Cost Carrier Terminal (LCCT) near the Penang Inter-national Airport at Bayan Lepas.

Its managing director Eddy Leong de-clined to comment, saying it had not been informed officially.

“This is what that has been reported in the newspapers. I can’t comment until it’s official,” he said when contacted here yesterday.

Firefly, a fully owned subsidiary of Ma-laysia Airlines began operations from its Penang hub from April 3.

On Saturday, Chief Minister Tan Sri Dr Koh Tsu Koon said the state government had approved in principle the LCCT lo-cation near the airport.

Meanwhile, Malaysia Airports Bhd (MAB) corporate planning senior manager Datuk Mahat Samah said it was up to the Government to set up the LCCT at the airport.

“We are prepared for it,” he told newmen after attending a motivational talk.

I thought KKIA is KK International Airport? Is it only built for Air Asia?

HELLO?? Penisula... KK is not in Penisula... so if Penang has LCCT... that will ultimately become the second one in PENISULA...
hehehe:nuts:

Oh...ok ok...

I thought KKIA is KK International Airport? Is it only built for Air Asia?

No, it is not only for Air Asia. KKIA got 2 Terminals, Terminal 1 & 2, only Terminal 2 is for LCC. Terminal 1 is for non Low Cost Carriers i.e MAS, DragonAir (HK Airline), Silk Air, Royal Brunei Airlines, etc.:)

No, it is not only for Air Asia. KKIA got 2 Terminals, Terminal 1 & 2, only Terminal 2 is for LCC. Terminal 1 is for non Low Cost Carriers i.e MAS, DragonAir (HK Airline), Silk Air, Royal Brunei Airlines, etc.:)

Hmmm...u mean LCCT is for those LC air company izzit?? Like Airasia or Lion Air??

Hmmm...u mean LCCT is for those LC air company izzit?? Like Airasia or Lion Air??

yup ! :)

LC Airfields gets Penang nod for LCCT
By Marina Emmanuel
August 10 2007
BusinessTimes


The State Executive Council has already in principle given the company approval to build the low-cost carrier terminal on a 36-hectare plot of land within the grounds of the Penang International Airport

THE Penang Government has given conditional approval to LC Airfields Sdn Bhd to set up a low-cost carrier terminal (LCCT) on the island.

Penang Tourism Development Committee chairman Teng Chang Yeow said final approval for the proposed terminal, however, lies with the Federal Government, Department of Civil Aviation and Malaysia Airports Holdings Bhd.

"The State Executive Council has already in principle given the company approval to build the LCCT on a 36-hectare plot of land within the grounds of the Penang International Airport," he told the Business Times.

"The company must now obtain approval from the Federal Government and aviation authorities," he added, saying that State Transportation Committee chairman Datuk Koay Kar Huah has been tasked with heading a technical committee to set up the proposed LCCT.

Teng said the new LCCT is expected to be sited north of the existing passenger terminal building in Bayan Lepas.

It is learnt that AirAsia has asked for rights to be the licensed operator of the new terminal, in order to keep costs low for its passengers by doing away with certain taxes.

"For now, the company will first need to indicate to the Transport Ministry the land on which it wishes to site the LCCT along with a proposed design."

The Penang International Airport currently has an annual capacity of five million passengers.

The airport is also the hub for Firefly, the new budget carrier launched by Malaysia Airlines.

AirAsia Hopes LCCT In Penang And Kuching To Be Built Faster

KUALA LUMPUR, August 2 (Bernama) -- AirAsia Bhd is hoping that Malaysia Airports Holdings Bhd (MAHB) will fastrack its plans to set up low-cost carrier terminal each in Kuching and Penang.

"This is part of the ideas (proposed) by MAHB. They will build another extension or a wing, so called a LCCT terminal hub, from the existing airport. This is the impression that Datuk Seri Bashir Ahmad (MAHB managing director) is giving to us," group chief executive officer of AirAsia Datuk Tony Fernandes said.

"I think there is an urgent need for AirAsia to get one, particularly in Penang as Chief Minister Tan Sri Dr Koh Tsu Koon has asked me so many times and we are very keen to start the LCCT operations both in Penang as well as in Kuching."

He said this to reporters following the signing of a memorandum of understanding here today between Tune Money.com and Celcom (Malaysia) Sdn Bhd.

Tony said such a move will also contribute tremendously to the growth of tourism in the country as AirAsia is now able to connect places that it never connected before like Kuching and Penang, Johor Baharu and Miri as well as Johor Baharu and Sibu.

MAHB recently announced its plans to construct a new building for the LCCT at the KL International Airport (KLIA) due to the increasing demand.

It was reported that MAHB's senior general manager of operations, Datuk Azmi Murad, said the new building would replace the existing LCCT building, which has been operating since March 2006 and located adjacent to the Malaysia Airlines cargo building.

The airlines presently operating at the LCCT are AirAsia, Thai AirAsia, Indonesia AirAsia and Cebu Pacific Airways.

Tony also said that the low-cost carrier planned to implement a new food system order to reduce several complaints on its line-up of food.

"From this system, you can order a variety of food through the computer."

When a passenger checks in, a coupon to indicate the food order will be given and this is to be used on plane when taking the food.

He said AirAsia is also looking into giving back customers' money in the event of long flight delays.

"This is what we want to do, if we are delayed for a longer period, we will give their money back just as what the pizza companies do."

"These are all the service enhancements that we are moving at and we plan to implement them before end of this year," he added.

-- BERNAMA

LC Airfields Sdn Bhd - I think this will develop further :)

Panel looking into formation of Penang LCCT
Saturday August 11, 2007
TheStar


PENANG: A technical report on the proposed low-cost carrier terminal (LCCT) in the state will be ready in a month.

A technical committee, formed to look into the setting up of the LCCT, is working on the report.

“It will take about a month to prepare the report, after which it will be submitted to the Transport Ministry for further action,” said technical committee chairman Datuk Koay Kar Huah in an interview yesterday.

Koay, who is also state Public Works, Utilities and Transportation Committee chairman, said details on the LCCT had yet to be worked out.

It is learnt LC Airfields Sdn Bhd has been given the conditional approval to set up the LCCT on the island.

Chief Minister Tan Sri Dr Koh Tsu Koon said recently that the state government had approved the LCCT and that it would be set up on a 36ha site adjacent to the Penang International Airport in Bayan Lepas.

He said the airport land belonged to the state but had been used by the Federal Government since before Independence.

State Tourism Development and Environment Committee chairman Teng Chang Yeow said the state had only given its approval to LC Airfields Sdn Bhd in principle for the proposed project.

“The final approval has to be come from the Federal Government,” he said.

LC Airfields Sdn Bhd - I think this will develop further :)

anyone got more info on these company?

Chan: No need for LCCT for Penang to become aviation hub
Saturday August 11, 2007
By CHRISTINA CHIN
TheStar


PENANG: The state does not need a low-cost carrier terminal (LCCT) to be an aviation hub, said Transport Minister Datuk Seri Chan Kong Choy.

The Penang International Airport in Bayan Lepas is currently handling a passenger load of about three million, or two million short of its maximum capacity, he told reporters on Saturday.

"I have yet to receive a concrete proposal from the state but the present airport is good enough.

"It has the facilities and infrastructure to handle the current passenger load and my ministry and the MCA will continue to work closely with the state, Economic Planning Unit (EPU), Malaysia Airports Bhd and other relevant bodies to make sure that the Penang International Airport becomes a thriving aviation centre under the (Northern Corridor Economic Region) NCER initiative," he said.

He however said that the Transport Ministry would look into the state's LCCT proposal if it is submitted.

Chan, who is also the state MCA chairman, was commenting on newspaper reports that the state had given its approval to LC Airfields Sdn Bhd in principle for the proposed LCCT project to be set up on the island.

It was also reported that a technical report (to be prepared by a technical committee chaired by Datuk Koay Kar Huah) on the proposed LCCT would be ready in a month.

The minister noted that to promote Penang as a regional and international aviation hub, it was necessary to have more routes not just to South-East Asian countries but also to various destinations around the world.

"We are interested in getting the airlines and budget carriers to service new routes like India, China, Europe and Australia.

"This is very important for the state's tourism growth," he said, adding that the ministry was conducting on-going talks with Malaysia Airlines, AirAsia, Firefly and AirAsia X on the new routes.

to build or not to build?

to build or not to build?

its very typical of our government...im not surprise next week they will agree on it again..

They should probably build a new terminal beside or close to the current one and renovate or tear down and rebuild the current one after that and link those two with a skytrain. Could assign one terminal for domestic flights and the other one for international. In addition, MAS should fly to more international routes. If China Airline, Thai Airways, Cathay Pacific, and Korean Airline fly to Penang, that mean there are market demand for the Taipei, Bangkok, HK, and Seoul. Why doesn't MAS fly there and let those airline monopolize the routes? Also, I believe there should be market for Penang-Sydney route and Penang-Tokyo route. Why not creating a secondary Kangaroo route involving Penang and a trans-pacific route via Tokyo or HK from Penang? The final destination could be San Francisco or LA.

no offense... you can have all the flights you want from PEN..
ie..PEN-NRT-LAX, or maybe MEL-PEN-LHR...but the problem is...enough pax to justify the frequency later on....? look what happened to MH 007..LHR-PEN-KUL..

They should probably build a new terminal beside or close to the current one and renovate or tear down and rebuild the current one after that and link those two with a skytrain. Could assign one terminal for domestic flights and the other one for international. In addition, MAS should fly to more international routes. If China Airline, Thai Airways, Cathay Pacific, and Korean Airline fly to Penang, that mean there are market demand for the Taipei, Bangkok, HK, and Seoul. Why doesn't MAS fly there and let those airline monopolize the routes? Also, I believe there should be market for Penang-Sydney route and Penang-Tokyo route. Why not creating a secondary Kangaroo route involving Penang and a trans-pacific route via Tokyo or HK from Penang? The final destination could be San Francisco or LA.

We all wanted those flights mentioned by you but for now let's be realistic. There's no enough demand for the route. With MAS focusing in KLIA operation, we will not see any cross continent flight from PEN soon.

no offense... you can have all the flights you want from PEN..
ie..PEN-NRT-LAX, or maybe MEL-PEN-LHR...but the problem is...enough pax to justify the frequency later on....? look what happened to MH 007..LHR-PEN-KUL..

I had the chance to take MH007 from London Heathrow to Penang twice, one was in Feb 2004 and the other one was in the end of Nov 2005. All the flights were 100% full. From my observation, I would say that 90% of the passengers in my first flight were heading to Penang while only 10% were to KLIA. All the passengers around me seemed to be so excited about going to Penang as they asked me many questions. An Irish couple sat next to me said that it was their first time visiting Penang and Langkawi, tanother couple in front of me told the stewardess that it was their 4th time to Penang and loved it while the other two guys seating behind me came to Penang because MAS gave them free stopover on their way to Australia.


In my second flight, I was told by MAS check-in officer at LHR that the MH007 flight was full and over-booked. They therefore couldn't allot the specific seat that I was asking for. This time, 30% of them were Penang-bound while 70% of them KLIA-bound or in transit for their connecting flight to OZ. Most British won't take long holiday in Nov and Dec because of Christmas. Most of them go to OZ at this time to visit relatives or "balik kampung" and vice versa.

So, the problem is not the MH007 (LHR-PEN-KUL) itself, but MH008 (KUL-LHR) because the outbound flights were always half empty. Most passengers boarded the evening flight MH001 or MH004 which departed two hours earlier than MH008, leaving MH008 alwasy half empty.

To me, there is no difference between XXX-KUL or XXX-PEN-KUL becauee the XXX-PEN-KUL route doesn't mean that it flies only passengers to Penang, indeed it flies also passeengers to KLIA and other destinations. What makes the only difference is that passengers who are not Penang-bound need to stop in Penang for one hour and they can stretch their legs and walk around after the long flight.

The same situation also applies to BKK-PEN, HKG-PEN, TPE-PEN, CAN-PEN, SIN-PEN by other airlines. Why they can survive on these routes but MAS can't. I think this is the issue of marketing and corporate strategies.


Anyway, MAS is always my favourite airlines to fly with.

^^ That's correct. LHR-PEN-KUL might not be successful but LHR-PEN-SYD might. The reason is travellors from London to KL will not choose it as there is already direct flights from LHR-KL, unless making them to transit in PEN will cost them less. However, those from London to Sydney might take it because ther's no direct flight from London to Sydney. So, if we have eough frequency and the price and schedule is right, I believe they will fly with MAS as our service is on par with SIN.

Also, MAS should fly from PEN to Shanghai or Beijing as there are plenty of ppl doing business in China nowadays. There are also a lot of China trips from Penang everyday. I'm sure that will be much successful than the KL-Xi'an route which has been cancelled. Keep in mind that there is around 4 Mil. ppl living within 2-hours drive to PEN. If there's a choice, I am sure the living in Ipoh will drive to PEN rather than KUL as it is closer and faster since KLIA is relocated to Sepang.

I would say MH007 (LHR-PEN-KUL) was successful. But because of MH008 (KUL-LHR) which saw a low passenger load, the whole route of MH007/8 had to be suspended.

But luckily, since the suspension of MH007/008, the promotion of tour packages to Penang in the UK is not much affected because there are still many Penang tour advertisements being published in the local newspapers everyweek. Other airlines such as Singapore Airlines and Cathay Pacific sometimes also take this advantage by promoting SIN+PEN and HKG+PEN tours.

^^ That's correct. LHR-PEN-KUL might not be successful but LHR-PEN-SYD might. The reason is travellors from London to KL will not choose it as there is already direct flights from LHR-KL, unless making them to transit in PEN will cost them less. However, those from London to Sydney might take it because ther's no direct flight from London to Sydney. So, if we have eough frequency and the price and schedule is right, I believe they will fly with MAS as our service is on par with SIN.

Also, MAS should fly from PEN to Shanghai or Beijing as there are plenty of ppl doing business in China nowadays. There are also a lot of China trips from Penang everyday. I'm sure that will be much successful than the KL-Xi'an route which has been cancelled. Keep in mind that there is around 4 Mil. ppl living within 2-hours drive to PEN. If there's a choice, I am sure the living in Ipoh will drive to PEN rather than KUL as it is closer and faster since KLIA is relocated to Sepang.

how sure are you tht the mentioned flight might be a success?

bear in mind that KUL is the main hub for MAS..and not all pax from LHR will go directly to SYD..the reason why the kangaroo route has been so successfull all these years because MAS offers good connection from KUL..

when u arrive from LHR on MH001...u will be in time to catch the Aussie flights to MEL/BNE/SYD and PER which all depart KUL after 0900....at the same time the flights to Aussie can pick pax from AMS flight which arrive around 0600++, the pax from India flights which also arrive early morning...lots of connection from KUL right..? what PEN can offer? no offense..but sometimes we need to be realistic on this things...

I had the chance to take MH007 from London Heathrow to Penang twice, one was in Feb 2004 and the other one was in the end of Nov 2005. All the flights were 100% full. From my observation, I would say that 90% of the passengers in my first flight were heading to Penang while only 10% were to KLIA. All the passengers around me seemed to be so excited about going to Penang as they asked me many questions. An Irish couple sat next to me said that it was their first time visiting Penang and Langkawi, tanother couple in front of me told the stewardess that it was their 4th time to Penang and loved it while the other two guys seating behind me came to Penang because MAS gave them free stopover on their way to Australia.


In my second flight, I was told by MAS check-in officer at LHR that the MH007 flight was full and over-booked. They therefore couldn't allot the specific seat that I was asking for. This time, 30% of them were Penang-bound while 70% of them KLIA-bound or in transit for their connecting flight to OZ. Most British won't take long holiday in Nov and Dec because of Christmas. Most of them go to OZ at this time to visit relatives or "balik kampung" and vice versa.

So, the problem is not the MH007 (LHR-PEN-KUL) itself, but MH008 (KUL-LHR) because the outbound flights were always half empty. Most passengers boarded the evening flight MH001 or MH004 which departed two hours earlier than MH008, leaving MH008 alwasy half empty.

To me, there is no difference between XXX-KUL or XXX-PEN-KUL becauee the XXX-PEN-KUL route doesn't mean that it flies only passengers to Penang, indeed it flies also passeengers to KLIA and other destinations. What makes the only difference is that passengers who are not Penang-bound need to stop in Penang for one hour and they can stretch their legs and walk around after the long flight.

The same situation also applies to BKK-PEN, HKG-PEN, TPE-PEN, CAN-PEN, SIN-PEN by other airlines. Why they can survive on these routes but MAS can't. I think this is the issue of marketing and corporate strategies.


Anyway, MAS is always my favourite airlines to fly with.

I have to agree with you on the fact that more people are like Penang compare to KL.
Actually a lot of people who travel in MAS to KLIA are only transitting at KLIA but not actually went into KL. A lot are transit and then go Singapore.

That is why sometime i feel that the data given by Government on tourist arrival is actually counted base on the people in the aeroplane and not base on the final destination that the travellers heading to.

Therefore when i read on newspaper that Johor receive 15million tourist arrival (i think starting from the beginning of year until July 2007), i almost want to vomit. Where the hell they get the figure! Even Penang last year only receive 2million tourists.

I guess the figure is true, but only thing is that is people travel to SIngapore and work then night time coming back to Johor. Or just people are landing in SIngapore then just take a one day trip to Melaka or Genting.

how sure are you tht the mentioned flight might be a success?

bear in mind that KUL is the main hub for MAS..and not all pax from LHR will go directly to SYD..the reason why the kangaroo route has been so successfull all these years because MAS offers good connection from KUL..

when u arrive from LHR on MH001...u will be in time to catch the Aussie flights to MEL/BNE/SYD and PER which all depart KUL after 0900....at the same time the flights to Aussie can pick pax from AMS flight which arrive around 0600++, the pax from India flights which also arrive early morning...lots of connection from KUL right..? what PEN can offer? no offense..but sometimes we need to be realistic on this things...

Yes...I agreee with you that LHR-PEN-SYD is not realistic. But, I believe any XXX-PEN-KUL routes are worthwhile to try for. But, please don't always introduce XXX-PEN-KUL routes one day and then suspened them few years later like what happened to MH007/08 (KUL-LHR-PEN-KUL) and MH057/058 (KUL-PEN-HKG-PEN-KUL). I remember last time they used to have a lot of NAR-PEN-KUL, KIX-PEN-KUL, NGO-PEN-KUL, FUK-PEN-KUL flights as well in 1990s and they all now gone.

In fact, the same situation also applies to some new KUL-bound flights itself. MAS introduced flights to Ahmahemad in India (spelling) and Xian in China and suspended them few months later because of low passenger loads. Didn't they do a thorough market research first before introducing these routes or they just based on rule of thumb? Again, this is the problem of marketing and corporate strategies.

**Correction : MH004 (12pm) used to take off 3 hrs later than MH008 (9:10am).

Wasn't the terminal only upgraded a few years ago?

With regards to the LCCT, I think it might be a good idea. Always thought Penang was under served. If Air Asia has big plans for another hub, Why not? Penang folks before always had to transit at KLIA or another airports for regional destinations. Hopefully Air Asia could bring the aviation boom that Penang deserves.

ya...im agreed u...i think penang airport is not busy becuz of the size impact

Penang deserves LCCT, says Lim
by Regina William
Email us your feedback at fd@bizedge.com


GEORGE TOWN: Instead of having two low-cost carrier terminals (LCCT) almost right next to each other, there should be one built in Penang, besides expanding the existing Bayan Lepas International Airport, Penang Chief Minister Lim Guan Eng said yesterday.

Lim was commenting on The Edge Financial Daily report that Sime Darby and AirAsia Bhd would collaborate to build a RM1.6 billion LCCT terminal in Labu, Negri Sembilan and Malaysia Airports Holdings Bhd (MAHB) was also planning to set up a bigger LCCT to replace the existing one.

The Sime Darby-AirAsia joint proposal is for the development of an LCCT on a 2,800ha site owned by Sime Darby in Labu while MAHB has yet to finalise its plans for the expansion of the LCCT.

“Why can’t one of them come to Penang? Why the need for duplication and also conflict between MAHB and the two parties and so much money being poured in.

“I hope this confusion is sorted out and the respective parties will seriously consider building an LCCT in Penang and also expanding the present airport,” said Lim.

He said Penang had been left out despite it being the second highest profit centre for both MAHB and AirAsia.

“Penang is the logistics hub for the Northern Corridor Economic Region (NCER) and also the northern gateway for the Indonesia-Malaysia-Thailand Growth Triangle (IMTGT), and we need the LCCT and upgraded airport more than the need to build two LCCTs at the same location,” Lim said at a press conference.

He said the deplorable condition at the Penang airport should be seriously looked into by MAHB. “Even the Kota Bharu airport is in a much better condition,” he added.

Lim said he has officially communicated to Transport Minister Datuk Ong Tee Keat and also the other players on the need for the airport expansion and also proposed an LCCT for Penang.

AirAsia lobbies Penang for LCCT
By Marina EmmanuelPublished: 2009/01/15



LOW-cost carrier AirAsia Bhd is looking at Penang as a potential hub for a low-cost carrier terminal (LCCT).

It is learnt that group chief executive officer Datuk Seri Tony Fernandes made a case to the Penang government to build the terminal and the authorities are keen on his proposal.

Sources said the proposed LCCT in Penang would be independent from the budget air terminal that AirAsia wants to build in Labu, Negri Sembilan.

The proposed Penang terminal has been priced at RM120 million, excluding the cost of land, said sources.

At a presentation made on Tuesday to Penang Chief Minister Lim Guan Eng, elected representatives, industrialists along with selected government and quasi-government agencies in Penang, Fernandes did not indicate how much land was needed for the LCCT.

However, he proposed two sites which are aligned with the Penang International Airport at Bayan Lepas. The land, however, does not belong to the state government.

During the briefing at Lim’s office at Kompleks Tun Abdul Razak in George Town, Fernandes stressed the need for AirAsia to find sufficient parking bays at night for his aircraft and the fact that there would be a problem soon when the airline took delivery of additional planes.

“By offering point-to-point flights from various hubs, AirAsia will be able to solve its parking issue while Penang will benefit via the coverage of direct flights serviced by AirAsia,”
said a source.

Apart from Malaysia Airlines, which offers direct international
flights from Penang to selected destinations, other carriers using the airport include AirAsia, Cathay Pacific, Thai Airways
International, Lion Air, Singapore Airlines, China Southern Airlines, China Airlines, Firefly, Kartika Airlines and Sriwijaya
Air.

AirAsia began flying into Penang in 2002 and offers direct flights to cities in Thailand and Indonesia.

Fernandes declined to comment on the matter, while Lim could not be reached.

In 2007, the Penang government gave conditional approval to LC Airfields Sdn Bhd to set up a low-cost carrier terminal on the island.

Business Times had reported that the proposed LCCT would likely be sited north of the passenger terminal building in Bayan Lepas, and that AirAsia had asked for rights to be the licensed operator of the new terminal in order to keep costs low.

The Penang International Airport was expanded in 2001 to accommodate an annual capacity of five million passengers.

In reality, the airport can accommodate only slightly more than three million passengers a year because space meant for transit passengers has been leased to duty-free shops.

AirAsia lobbies Penang for LCCT
By : Marina Emmanuel


AirAsia Bhd group CEO Datuk Seri Tony Fernandes says the company needs sufficient parking bays for its aircraft.


PENANG: Low-cost carrier AirAsia Bhd is looking at Penang as a potential hub for a low-cost carrier terminal (LCCT).

It is learnt that group chief executive officer Datuk Seri Tony Fernandes made a case to the Penang government to build the terminal and the authorities are keen on his proposal.

Sources said the proposed LCCT in Penang would be independent from the budget air terminal that AirAsia wants to build in Labu, Negri Sembilan.

The proposed Penang terminal has been priced at RM120 million, excluding the cost of land, said sources.

At a presentation made on Tuesday to Penang Chief Minister Lim Guan Eng, elected representatives, industrialists along with selected government and quasi-government agencies in Penang, Fernandes did not indicate how much land was needed for the LCCT.

However, he proposed two sites which are aligned with the Penang International Airport at Bayan Lepas. The land, however, does not belong to the state government.

During the briefing at Lim's office at Kompleks Tun Abdul Razak in George Town, Fernandes stressed the need for AirAsia to find sufficient parking bays at night for his aircraft and the fact that there would be a problem soon when the airline took delivery of additional planes.

"By offering point-to-point flights from various hubs, AirAsia will be able to solve its parking issue while Penang will benefit via the coverage of direct flights serviced by AirAsia," said a source.

Apart from Malaysia Airlines, which offers direct international flights from Penang to selected destinations, other carriers using the airport include AirAsia, Cathay Pacific, Thai Airways International, Lion Air, Singapore Airlines, China Southern Airlines, China Airlines, Firefly, Kartika Airlines and Sriwijaya Air.

AirAsia began flying into Penang in 2002 and offers direct flights to cities in Thailand and Indonesia.

Fernandes declined to comment on the matter, while Lim could not be reached.

In 2007, the Penang government gave conditional approval to LC Airfields Sdn Bhd to set up a low-cost carrier terminal on the island.

Business Times had reported that the proposed LCCT would likely be sited north of the passenger terminal building in Bayan Lepas, and that AirAsia had asked for rights to be the licensed operator of the new terminal in order to keep costs low.

The Penang International Airport was expanded in 2001 to accommodate an annual capacity of five million passengers.

In reality, the airport can accommodate only slightly more than three million passengers a year because space meant for transit passengers has been leased to duty-free shops.

Penang budget terminal proposal gets thumbs up
By Marina EmmanuelPublished: 2009/01/16

Industrialists hail the proposal as an answer to better flight connectivity and to lure more investors to the state, while the tourism sector hopes it will boost tourist arrivals

BUDGET carrier AirAsia Bhd's (5099) proposal to build a low-cost carrier terminal (LCCT) in Penang has received the thumbs up from industrialists and tourism players on the island state.

While industrialists are hailing the proposal as an answer to better flight connectivity and a magnet to lure more investors to the state, the tourism sector is hoping that the proposed LCCT will boost tourist arrivals and serve to insulate the uncertain economic outlook.

"If Penang gets an LCCT, its residents will definitely be the major beneficiaries," Federation of Malaysian Manufacturers (northern region) Datuk O.K. Lee told Business Times yesterday.

"While there are currently quite a number of cheap flights to China and other locations, they all require us to use the LCCT in Kuala Lumpur to depart, resulting in higher costs.
"I hope an LCCT for Penang means that Penang residents and its visitors get to fly at low cost even to Europe, Australia and other Asian countries, directly," he added.

At a separate function, Penang Chief Minister Lim Guan Eng said he welcomes AirAsia's proposal to set up the budget terminal on the island.

New Straits Times yesterday reported that AirAsia was lobbying the Penang State Government for an LCCT, within the vicinity of the existing Bayan Lepas International Airport on the island.

The proposed budget terminal is estimated to cost RM120 million, excluding the cost of land, sources had said.

Malaysian International Chamber of Commerce and Industry (northern region) chairman Datuk Seri Nazir Ariff Mushir Ariff said it is crucial for Penang to get an LCCT immediately for its tourism industry to boom.

"In order for Penang to get investors and tourists in a big way, people need to be connected by direct flights," he said, adding that the cost of doing business in Penang will also become competitive in the long-run.

Malaysia Association of Hoteliers' Penang chapter chairman Marco G. Battistotti said the provision of an LCCT for Penang is a good strategy since the regional market for tourism arrivals is growing and Malaysia can tap into this.

Act quickly on LCCT plan for Penang: Lim
By Marina EmmanuelPublished: 2009/01/17

PENANG Chief Minister Lim Guan Eng has appealed to the Transport Ministry to urgently consider any proposal it receives to set up a low-cost carrier terminal (LCCT) in the state.

He said that a budget terminal was crucial for Penang's tourism development and to ensure its position as a logistics hub in the north.

Under the Northern Corridor Economic Region master plan, a RM100 million international LCCT has been identified for the state.

"We need either an LCCT or an extension to the existing airport," Lim told reporters after meeting with Penang members of the American Malaysian Chamber of Commerce at his office in George Town yesterday.

Business Times reported on Thursday that AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes had proposed to the state government to build an LCCT in the vicinity of the existing airport.

To a question, Lim said: "The proposed LCCT should be available to all LCCs and we would work on a basis of equity and fair play."

Although the existing airport has capacity for five million passengers, it can only accommodate just over three million currently because space in the transit area has been taken up by retailers.

An aviation expert told Business Times that AirAsia was probably eyeing the site of the MASkargo Penang Cargo Centre (PCC) in Bayan Lepas.

It is learnt that the former state administration had written to Malaysia Airlines Cargo Sdn Bhd (MASkargo) asking it to vacate the complex and relocate to the facility in Batu Maung.

"As the existing cargo centre is located right next to the airport terminal building, the proposed LCCT could share the same Customs, immigration and quarantine facilities," the aviation expert said.

"All that is needed, therefore, is to extend the airport terminal and build a new extension on the site of the current cargo centre."

An alternative site for the LCCT could be the area where private jets are parked.

OSK: Dire need for LCCT in Penang
Published: 2009/01/19




OSK RESEARCH Sdn Bhd said there is a dire need for a new low-cost carrier terminal (LCCT) or an extension facility to the existing airport in Penang to accommodate new routes.

In a research report last Friday, OSK said a larger airport would attract more investors as Penang is a key industrial state and the focus of multinational corporations that set up manufacturing plants.

"It may help to boost economy in the other northern states, including Kedah, Perlis and Perak.

"Penang is a key tourist centre so good flight connectivity may increase tourist arrivals," it added.

Business Times reported that AirAsia Bhd was looking at Penang as a potential hub for a LCCT and has asked for rights to be the licensed operator to keep costs low.

AirAsia group chief executive officer Datuk Seri Tony Fernandes has proposed two sites that are aligned with the Penang International Airport at Bayan Lepas.

The proposed Penang terminal will be priced at RM120 million, excluding the cost of land.

Penang Chief Minister Lim Guan Eng said he welcomes AirAsia's proposal to set up the budget terminal on the island.

OSK added that AirAsia was looking closely at expanding its flight network in Penang.

"As AirAsia has made aggressive aircraft purchases and expects to take delivery over the next few years, the new proposed LCCT will be timely in offering room for its fast expanding aircraft fleet," it said.

However, OSK doubts the need for the budget airline to operate the airport.

"As Malaysia Airport Holdings Bhd (MAHB) currently offers lower passenger service charges and passenger service security charges for passengers departing from LCCT at KLIA and Kuching, we strongly believe MAHB may offer the same package if the LCCT was built in Penang," it said.

AirAsia also enjoys various incentives in the form of lower or free landing and parking fees for introducing new routes, so the new airport may not necessarily result in significantly lower costs if operated by the company.

OSK said the airline should focus on its core business as a low-cost carrier because the airport business may not necessarily be a lucrative business.

OSK maintains its "neutral" call on AirAsia with a 12-month target price of RM0.93.

‘Budget flights can boost Penang’s economy’


LOW-COST direct flights to Penang are vital to give the state’s commercial and tourism industries a shot in the arm.

Newly appointed Penang MCA deputy chief Eng Hiap Boon said such flights could help local small and medium industries (SMIs) forge links with their foreign counterparts.

He said more tourists would also want to visit Penang as the direct flights would make their travelling faster and more conve-nient.

“The state MCA and several business asso-ciations recently submitted a proposal to the Transport Ministry to introduce direct low-cost flights from Penang to China, Singapore, Indonesia and Australia.

“We hope the ministry would seriously consider our proposal and discuss it with the re-levant authorities,” he said.

Eng said the party also planned to conduct business seminars with the Small and Medium Industries Development Corporation Malaysia (SMIDEC) to help local SMIs gain knowledge to secure grants and micro-credit loans.

He said many SMIs had been finding it hard to obtain necessary loans to do business due to the current global economic slowdown.

Eng, who is also state MCA Youth chief, said the party hoped to attract more youths to play an active role to serve the community.

“The March 2008 general election showed that many from the older generation were influenced by their children on which candidate to vote for.

“So, we feel the youths, especially those above 18 years old, will be an ideal group to help reach out to the masses,” he said.

Eng noted that about 70% of the present state MCA liaison committee comprised young and talented office bearers, assisted by senior party leaders who had assumed the posts of executive advisors.

He added that it was vital for the party to strengthen its grassroots as well as groom the young to become capable leaders of the future.

“We will seek the necessary advice and guidance from our senior party leaders as we face a tough challenge of regaining sup- port from the Chinese community,” he said.

Penang repeats LCCT request, wants tourism to drive growth

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