KLIA East @ Labu - 2nd LCCT [Archive] - Page 2

pedang

January 16th, 2009, 04:20 AM

IATA: Focus on maximising KLIA's potential
Published: 2009/01/16

THE International Air Transport Association (IATA) yesterday entered the debate on a proposed new low-cost carrier terminal (LCCT) south of Kuala Lumpur, saying Malaysia should focus on maximising the existing KL International Airport's (KLIA) potential as a hub instead.

In a statement issued in Kuala Lumpur yesterday, the Geneva-based airline group indirectly referred to the plan by Sime Darby Bhd and AirAsia Bhd to build a new low-cost carrier terminal (LCCT) in Labu, Negri Sembilan dubbed "KLIA East@Labu".

AirAsia has been promoting the need for the new airport, saying, among others, that the airline's expansion plans require a dedicated airport instead of the current LCCT at the KLIA.

"A single airport operation is the preferred solution if Kuala Lumpur is to be a strong aviation hub in the region. Having two airports could translate into inconvenience and confusion for passengers," IATA said.

"It could also result in duplication in services, such as fire and rescue, air traffic control, immigration and customs. This will lead to lower cost-efficiency and ultimately a higher cost of travel."

IATA also raised possible negative implications in managing the air traffic at the two airports.

"KLIA currently has aircraft arriving and departing to all directions. Having another airport nearby could impact the efficiency of air traffic management.

"There could potentially be air traffic delays. Aircraft may have to fly a longer distance before landing at KLIA, or after taking off."

Meanwhile, AirAsia revealed at an analyst briefing on Wednesday that the land cost for the new LCCT would be some RM200 million, bringing the total project cost to RM1.8 billion.

HwangDBS Vickers Research Sdn Bhd said its main concern is whether AirAsia will be able to raise funding for the KLIA East@Labu project, given the current tight credit environment.

"In our opinion, it makes more economical sense for a new LCCT to be located next to the (existing) KLIA (in Sepang) to ride on existing infrastructure such as the runways and oil tank farm," it said in a note to clients yesterday.

The foreign research firm also said the completion of the new LCCT could be delayed because it would need 29 months to develop from January 1 2009.

"Meanwhile, Malaysia Airports Holdings Bhd (MAHB) already has plans to build a new LCCT by end-2011 that will share the existing runway and other facilities in KLIA, and likely to be funded by MAHB or the government or both," said HwangDBS Vickers Research.

ddes

January 16th, 2009, 06:32 AM

One thing I don't get is, since KLIA East is really a separate airport, why not choose a site which is much closer to Kuala Lumpur itself? Something within 20 to 30km from the city centre would be nice.

erwinkarim

January 16th, 2009, 06:45 AM

^^ you have to find a large swath of land which is cheap. none to be find near the city center. going up north toward tg. malim might be a good idea, but then, you want to change to KLIA - forget it.

patchay

January 16th, 2009, 07:10 AM

there's no more land in Klang Valley zoned for airport.... either Subang or Sepang-Nilai

TWK90

January 16th, 2009, 08:59 AM

there's no more land in Klang Valley zoned for airport.... either Subang or Sepang-Nilai

I afraid Subang is not possible...

Since the government shifted the main operation from Subang to KLIA, more developments has been around that area......then Subang is more densely populated than Sepang...

Traffic will be a big problem, as Subang is not like Sepang, in Subang it has higher population density than Sepang, thus...........traffic jam is a big problem if the whole AK moved to Subang...

Look at difference of the density between Subang and Sepang...

Subang

http://img216.imageshack.us/img216/98/subangyl5.jpg

Sepang

http://img216.imageshack.us/img216/2509/sepangvk9.jpg

On the other hand, i wonder Subang Jaya residents will protest that idea or not...

erwinkarim

January 16th, 2009, 12:21 PM

TWK90

January 16th, 2009, 12:40 PM

^^ used to stay over in my uncle's house in SS15 in the late 80's and early 90's. i think it was the flight path for planes to land. i can't imagine my uncle tolerate those airplane noises when it was landing at 1100 pm.

can you imagine that kind noise of over 60 times a day from 0500 to 0100?

For that reason, that is why i doubt Subang will be reused as the main hub for aviation.....

1998 to now, traffic to KL airport has grown, so i doubt the people of Subang Jaya can have peaceful sleep or living if the Subang airport is being reused as main airport, in 2000's....

allurban

January 16th, 2009, 01:19 PM

For that reason, that is why i doubt Subang will be reused as the main hub for aviation.....

1998 to now, traffic to KL airport has grown, so i doubt the people of Subang Jaya can have peaceful sleep or living if the Subang airport is being reused as main airport, in 2000's....agreed...but Tony was still talking about Subang recently, even up to the beginning of 2008.

So that is why I am wondering, what changed and changed so quickly?

It's not that KLIA East @ Labu is a bad idea in itself. Heck, as far as I can see it might have been wiser to build KLIA@Labu in the first place...."I can't see the difference, can you see the difference" etc.

What would be different anyways? Let's see:

The ERL would be running along the KTM alignment

The ERL would probably be run by KTM instead of Francis Yeoh's YTL Corp....better for all of us as it would have pushed KTMB to modernize the Komuter service and prices would be more reasonable

There would probably be an ERL to Seremban

There would still be the highway and the access highways

The ELITE Highway would still have been built as a bypass around KL and to link to the western Klang Valley (maybe it would only be 2 lanes each way instead of 3)...

PLUS would still have their profits

The residents of Subang could still sleep semi-peacefully

There would still be room for expansion

Sepang Internationl Circuit could be built...anywhere else...

Did I miss anything?

Cheers, m

patchay

January 16th, 2009, 01:24 PM

TWK90

January 16th, 2009, 01:55 PM

If I'm not mistaken...

1. ERL (by YTL) will be expanded to Labu
2. KTM will be expanded to connect KTM Labu. Also KTM has submitted a proposal to introduce "Airport Express" (by KTM)

There'll be two airport, two airport rail service as well hahaha.

Two airport rail service is not a bad idea at all...the only question is,

Who will fund the construction of those rail extensions? Sime Darby or the government?

patchay

January 16th, 2009, 03:31 PM

Who will fund the construction of those rail extensions? Sime Darby or the government?

According to AA website, all rail and other infrastructure is privately financed.

OshHisham

January 16th, 2009, 03:34 PM

i think we forgot that YTL lost their bid to secure KL-Singapore Express due to some reasons of 'jeopardizing KLIA's struggle of becoming aviation hub'. then, suddenly when Tony came with his fancy look airport proposal (which is also, 'jeopardizing KLIA's struggle of becoming aviation hub'), we almost forgot our first priority....

OshHisham

January 16th, 2009, 03:35 PM

According to AA website, all rail and other infrastructure is privately financed.

damn this Tony, what makes him so sure?

TWK90

January 16th, 2009, 03:46 PM

According to AA website, all rail and other infrastructure is privately financed.

Wah......

Maybe i should look at past rail construction projects to judge the possible costs....

nazrey

January 16th, 2009, 04:15 PM

If I'm not mistaken...

1. ERL (by YTL) will be expanded to Labu
2. KTM will be expanded to connect KTM Labu. Also KTM has submitted a proposal to introduce "Airport Express" (by KTM)

There'll be two airport, two airport rail service as well hahaha.

you forgot Subang Airport linking also! hehe..

Subang airport to KL Sentral rail link mulled
Tuesday June 3, 2008

PETALING JAYA: A train service linking the Sultan Abdul Aziz Shah Airport in Subang and KL Sentral is one of the proposals that will be considered in redeveloping the airport, said Transport Minister Datuk Ong Tee Keat.

Whether it would be an express train, Light Rail Transit or commuter train, it needed further study, he said.

On the redevelopment of the airport, he said all three terminals are expected to function fully by 2010.

A new project, SkyPark Subang, would be a general and corporate aviation hub comprising the existing Terminal 3 building, regional aviation centre also known as the Hangarage Complex and the Commercial nexus, he added.

At Terminal 2, there will be 12 hangars in operation for repairs, while Terminal 1 has been identified as the site for maintenance, repair and overhaul.

ddes

January 16th, 2009, 05:35 PM

This leaves everyone else in KLIA in a very screwed up position.

What will happen to the other budget carriers serving KUL? Will they alone justify the continued operations of the LCCT? I doubt so. If AirAsia doesn't allow other budget carriers to use Labu, they might just reduce services or cut it altogether.

There will also be pressure on MH to keep up the growth of KUL.

Another thing I realize is that AirAsia has incredibly optimistic figures on growth figures, especially with AirAsia X figures. The long-haul market will be more volatile than the ASEAN market. Will passengers come if they begin routes, and if so, will traffic loads hold?

Look at Jetstar's initial entry into Japan. Unfavorable exchange rates prevented it from working only until recently...

OshHisham

January 16th, 2009, 06:16 PM

btw on the other case...JB inner city is dead due to Pak Lah's stupid decision cancelling the crooked bridge.

http://www.skyscrapercity.com/showpost.php?p=30835020&postcount=300

and i dont want to see anyone else (KLIA) got 'sacrificed' by his stupid decision.

Khaw

January 16th, 2009, 08:16 PM

Think about this scenario: As most of you are aware, airlines come into and go out of business regularly and in fact quite frequent...what if AA goes bust in the future?? No private airlines last forever, as they either got bought up or end up broke!!

Then the SCARY thing is the good citizen of Malaysia will be:
(1) saddled with a bail-out of the "private" airport and all its facilities,
(2) stuck with another un-used white elephant if no other airlines is willing to "run" an airport on top of running a competitive business as it is, and
(3) forever mocked for stupidity in planning by our neighbours in Singapore and Thailand (well, this is actually for the government, and indirectly the citizens).

Has anyone in the government consider this to begin with?????:bash:

OshHisham

January 17th, 2009, 02:15 AM

LCCT: AirAsia sepatutnya fokus perniagaan teras

KUALA LUMPUR 16 Jan. - AirAsia Bhd. sepatutnya memberi fokus kepada perniagaan terasnya sebagai syarikat penerbangan tambang murah kerana perniagaan lapangan terbang tidak menjaminkan keuntungan.

Penganalisis OSK Research, Ng Sem Guan berkata, mengambil contoh Senai Airport Terminal Services Sdn. Bhd. (SATS), yang mengambil alih Lapangan Terbang Antarabangsa di Johor daripada Malaysia Airports Holdings Bhd. (MAHB) pada 2003 masih lagi bekerja keras untuk meraih keuntungan.

Berikutan itu beliau mempersoalkan mengapa AirAsia berhasrat untuk mengendalikan lapangan terbang sendiri di Pulau Pinang.

''MAHB telah menawarkan caj perkhidmatan penumpang (PSC) dan perkhidmatan keselamatan penumpang (PSSC) yang rendah bagi penumpang yang berlepas dari Terminal Penerbangan Tambang Murah (LCCT) di Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) dan Kuching.

''Oleh itu, kami berpendapat MAHB akan mengenakan pakej yang sama sekiranya LCCT dibina di Pulau Pinang.

''AirAsia juga menikmati pelbagai insentif pendaratan percuma dan yuran letak kapal terbang dengan memperkenalkan laluan baru, oleh itu tidak semestinya AirAsia mampu mengekalkan kos lebih rendah jika mengendalikan lapangan terbang sendiri,'' katanya dalam nota penyelidikan.

OSK Research memberi reaksi itu ekoran keputusan AirAsia untuk mendapatkan lesen sebagai pengendali lapangan terbang di LCCT barunya di Pulau Pinang dengan alasan untuk mengekalkan kos yang lebih rendah.

Cadangan membina LCCT di Pulau Pinang itu dijangka menelan kos sebanyak RM120 juta.

Ia merupakan 'perjuangan' kedua syarikat tersebut selepas mendapat kelulusan membina KLIA-East di Labu.

Sem Guan berkata, OSK Research tidak terpengaruh cadangan KLIA-East dan LCCT di Pulau Pinang kerana kedua-duanya tidak mempunyai kesan keuntungan kepada kewangan AirAsia dalam jangka pendek.

Bagaimanapun, Sem Guan dalam ulasannya menyokong pembinaan LCCT baru di Pulau Pinang atau meningkatkan infrastruktur di lapangan terbang sedia ada bagi menyediakan lebih banyak laluan baru, khususnya penerbangan terus antarabangsa dan menyediakan lebih banyak rangkaian penerbangan ke negeri itu.

''Dengan kedudukan Pulau Pinang sebagai negeri industri utama dan menjadi lokasi tumpuan syarikat multinasional, lapangan terbang yang besar akan meningkatkan lagi jumlah pelabur ke negeri itu.

''Ia juga akan meningkatkan pertumbuhan ekonomi negeri-negeri jirannya seperti Kedah, Perlis dan Perak,'' katanya.

nazrey

January 17th, 2009, 04:43 PM

Is A New Airport Needed, Questions Chin
January 17, 2009 19:14 PM

KUALA LUMPUR, Jan 17 (Bernama) - Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui said that his ministry was not against any development including building a new airport, if needed.

The issue is not whether the airport can be built on palm-oil land or not, he said to reporters when asked on Sime Darby's plan to build the permanent low cost carrier terminal (LCCT) on its land in Labu, Negeri Sembilan.

"The issue is whether we should have a new airport or not," he said.

In any case, a company, which is going to build any airport, must get approval from the civil aviation department and carry out an Environmental Impact Assessment (EIA).

"If you cannot use palm oil land for airport, you have to use other land."

Chin was met here following his dialogue session with the Malaysian Estate Owners' Association (MEOA) in Putrajaya today.

On whether it is advisable for the conglomerate to sacrifice oil palm trees for an airport, he said: "I cannot comment. That is its commercial decision."

It just needs approval for an airport operation there from the government.

"It is not going to involve the government, if it is a private land."

It was announced recently that the new site for the airport would need 3,000 acres of land.

On an acre of land, some 138 oil palm trees can be planted, and therefore some 414,000 trees would have to make way should the airport be built on the plantation land.

Early this month, Sime Darby announced that it has got government approval to develop the proposed private LCCT project.

It said that the project was an integral part of its development plan for its Negeri Sembilan Vision City (NSVC).

NSVC is part of its Central Vision Valley (CVV) property development project spanning Selangor and Negeri Sembilan.

Sime Darby and budget airline AirAsia Bhd had proposed to jointly develop and operate the RM1.6 billion LCCT which will be known as KLIA-East@Labu.

The project will be privately funded.

The RM1.6 billion is an estimate of the cost of structures and the runway but does not include the 3,000-acre piece of land where it would be constructed.

-- BERNAMA

Cerulean

January 17th, 2009, 06:51 PM

I am so sure this stupid Labu Airport proposal has something to do with the loss in Kuala Terengganu Parlimentary Seat election. Well done Malaysia for not choosing the stupid government who approved this Labu airport project.

pynshi91

January 18th, 2009, 08:03 AM

It would be great if there are plans of a free monorail service linking klia and labu airport.Train service connecting kl city centre to the pumpkin airport sounds like an awesome idea but since it's gonna be privately financed,,,train fare is gonna cost like hell......the klia express connecting kl sentral to klia already costs us rm35 per person..what more labu airport which is furthur away from klia?

daeng_jal

January 18th, 2009, 12:13 PM

mahathir comment:

LABU AIRPORT
By
Dr. Mahathir Mohamad
on January 17, 2009 3:48 PM | Permalink | Comments (92) | TrackBacks (0)
1. Air Asia has done well to explain the justification for the so-called KLIA-East in Labu.

2. Not having the facilities and personnel I can only give my very unprofessional view on the justification:

a) Passenger Capacity

I must congratulate Air Asia on its very remarkable success. By 2014 it will handle 26 million passengers. Present terminal at KLIA is handling about 25 million passengers.

KLIA is planned to handle 125 million passengers. It has 25,000 acres of land to build another terminal and four satellites. It can even duplicate these terminals and satellites. But Air Asia wants low-cost terminals with no aero-bridge, no luxury interiors. This is not a problem for KLIA.

There is enough space in the 25,000 acres of reserved land to build the low-cost terminal to accommodate the 60 million Air Asia passengers in the distant future. MAHB (Malaysia Airports Holdings Berhad) can do this. (Incidentally Putrajaya has only 10,000 acres of land). However, by 2014 the total number of Air Asia passengers would only be 27 million. Accommodating this number should be no big deal for MAHB.

b) Runway capacity

By 2014 Air Asia will have 77 aircrafts. LCCT capacity will still be for 33 aircrafts. Does Air Asia expect all its aircrafts to be on the ground in LCCT all the time?

Usually some would be in the air and many would be at other airports. Expanding the parking area would not be too difficult. There would still be enough land at KLIA.

As for the runways Times Online reports that Heathrow will now build its third runway to be completed in 2020. Presently Heathrow has only two runways and it still handles almost 70 million passengers.

As stated above, KLIA can build another three runways to handle 125 million passengers. If passengers and aircrafts increase to more than presently handled by Heathrow, a third runway can quickly be built.

If KLIA LCCT is not connected by rail and bus, the thing to do is to provide all these. Extension to the Express Rail Link line can be built. Terrain is no problem. We have sliced through higher hills to build roads.

If the waiting time for taxis has increased due to the huge airport layout (I don't understand this), whatever solution for this problem is proposed for Labu, the same solution can also be applied to KLIA LCCT.

c) Number of Gates

Since Air Asia will not be using the main terminal why should the small number of gates there be of concern to Air Asia?

If Air Asia will be putting more than 55 Gates at Labu to cater for its large number of aircrafts and movements, why cannot LCCT at KLIA be expanded to have maybe 100 Gates to avoid any shortages? Will Labu be provided with 100 Gates? If so, when? Again, why be bothered about KLIA Terminal being equipped with aero-bridges etc when Air Asia does not want to use it?

3. The comparison with Dubai and Jackson Atlanta International Airport is misleading.

4. The picture shows four runways (no indication which airport). Multiple runways is common but they are operated by one airport with one control tower. The picture and the layout does not suggest separate towers for different runways. You cannot have multiple runways close to each other but controlled by different towers.

5. Perhaps Air Asia can show documents that separations between different airport runways of 2km are permissible. Is there any example of two major airports operating separately but located 2km from each other? I don't know. Please enlighten me.

6. The problem prompting the idea of a new airport is the allegedly high charges by MAHB for the use of LCCT by Air Asia. MAHB is owned by Khazanah and it is believed Khazanah has a stake in Air Asia. Both are therefore GLCs. The Government can tell them to negotiate fair charges. Or is it the Government that wants this airport at Labu for reasons other than need?

7. Or is it that Sime Darby now wants to go into airport business?

daeng_jal

January 18th, 2009, 08:02 PM

from AK websie after i unintentionally called them stupid (sorry tony)

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/deb5c829-7f000010-123961b0-b9b61595/name/labu_KLIAplan1.gif

http://www.airasia.com/storage/bo/aaportal.model.ContentFileUpload/deb5c843-7f000010-123961b0-f88557da/name/labu_KLIAplan2.gif

well since east bound cannot being use coz of ERL and west bound is a swamp...does this mean KLIA is design to fail.....

erwinkarim

January 19th, 2009, 03:19 AM

^^ what's wrong w/ the ERL again that the engineering might of the world can't resolve the problem of building a new terminal building?

you can send a man to the moon, build a dual function tunnel, cut hills, build a structure almost 1 km up, but all that can't resolve this problem of railway lines being a bit too high?

rizalhakim

January 19th, 2009, 05:36 AM

KLIA-EAST@LABU PLAN: Public owed explanation
By : H.M.Z., Petaling Jaya

I AM intrigued by the lack of transparency in decision-making with respect to the proposed new LCCT East@Labu.

The public is owed an explanation as to why all avenues have not been exhausted to ensure this new LCCT is located at the underutilised Kuala Lumpur International Airport so that public funds expended on KLIA are not wasted.

It is also baffling whyMalaysia Airports Holdings Bhd (MAHB) is not making extra efforts to persuade AirAsia to bring the 10 million plus LCCT passengers to KLIA.

Common sense would suggest that the higher volume of combined passenger traffic would enable MAHB to achieve its target and maximise the utilisation of KLIA, even if AirAsia is allowed to continue with its subsidised charges. AirAsia should not complain about the charges, which are among the lowest in the region.

Also, can the transport minister explain why he is "washing his hands of" this matter by saying that this project is under the purview of the Finance Ministry and not his ministry's responsibility?

Isn't managing and licensing airports, civil aviation, passenger safety, etc, his ministry's responsibility?

rizalhakim

January 19th, 2009, 05:36 AM

KLIA-EAST@LABU PLAN: It will maximise KL's potential as hub
By : HAMDAN MOHAMAD, Head of Communications AirAsia, Sepang

I REFER to your report, "Iata: Focus on maximising KLIA's potential" (NST, Jan 16) that quoted a statement by the International Air Transport Association.

We are aware that Iata's membership comprises mainly legacy airlines rather than low-cost carriers (LCCs) and that their sole member in Malaysia is Malaysia Airlines.

From the statement, it appears that Iata may not be very conversant with the KLIA-East @Labu proposal.

We have forwarded to them a comprehensive presentation on the project that was shared with the media recently and have offered to brief them should they require further clarification.

Contrary to what was claimed in Iata's statement, KLIA-East in reality would actually maximise Kuala Lumpur's potential as a hub.

We assume that Iata is aware that the definition of "hub" is not the airport but the city (in this case Kuala Lumpur) and that it is airlines that create hubs with their connectivity of routes and frequency of flights.

A case in point would be Greater London and Greater New York.

We urge any party that has concerns regarding the KLIA-East project to contact us at AirAsia.

For more information, please visit AirAsia.com, where we have a site dedicated to KLIA-East.

rizalhakim

January 19th, 2009, 05:37 AM

New LCCT 'no luxury project'
By : Dharshini Balan

SEREMBAN: The state government has stressed that the proposed low-cost carrier terminal (LCCT), to be known as the KLIA East @ Labu, is not a luxury project.

It is simply to complement facilities at the Kuala Lumpur International Airport.

Menteri Besar Datuk Seri Mohamad Hasan said he was confident the RM1.6 billion project would not only benefit the people but also the country, just as other projects such as the Proton Saga national car, the Penang bridge, North-South Expressway and Putrajaya had done.

"In times past, people had criticised the Proton project as a waste of public money, just like the other projects, but now all these 'mega' projects have proved beneficial.

"It is not surprising that when a new 'mega' project is about to begin, it will have its critics but the KLIA East @ Labu is not a luxury project. It is to provide an amenity for the convenience of the public," he said yesterday after handing out Chinese New Year ang pow to patients at the Rantau branch of the Mawar Haemodialysis Centre.

To the many who had questioned the necessity of building and developing the KLIA East @ Labu, he said: "I am confident that AirAsia Bhd and Sime Darby Bhd did thorough research on the project before proposing it.

"The rapid development of the country's low-cost aviation industry is one of the main planks in the argument to have the existing terminal, the LCCT in Sepang, replaced with a new one."

rizalhakim

January 19th, 2009, 07:39 AM

LCCT baru bukan membazir

Oleh Mohammad Yasir Jaafar
utusanN9@utusan.com.my

SEREMBAN 18 Jan. - Orang ramai perlu berfikiran terbuka serta melihat rasional pembinaan Terminal Syarikat Penerbangan Tambang Murah (LCCT) yang dikenali KLIA- East@Labu di negeri ini sebagai satu pelaburan bermanfaat kepada rakyat.

Menteri Besar, Datuk Seri Mohamad Hasan berkata, rakyat diminta melihat KLIA-East@Labu sebagai sesuatu yang positif kerana ia membawa kebaikan kepada semua dan bukannya satu projek membazir.

''Ia bukan pembaziran kerajaan, ini berkaitan Sime Darby Bhd., di mana mereka mahu memajukan kawasan estet seluas 2,832.7 hektar di sempadan Nilai dan Bandar Enstek berhampiran Sendayan dan di atas persetujuan Syarikat AirAsia Bhd. untuk membina terminal baru bagi operasi penerbangan tambang murah mereka," katanya di sini hari ini.

Mohamad berkata demikian kepada pemberita selepas penyampaian bantuan Tahun Baru Cina di Pusat Hemodialisis Mawar Cawangan Rantau di sini yang turut dihadiri oleh Pengasas dan Pengerusi Pusat Hemodialisis Mawar, Datuk Dr. Yeo Chai Thiam.

Beliau yang ditanya pemberita mengenai status pembinaan KLIA-East@ Labu menjelaskan, kerajaan negeri sentiasa menyokong perkembangan pembinaan terminal baru ini.

Mohamad menafikan segala dakwaan kononnya pembinaan itu memperlihatkan satu kerugian, sedangkan ia adalah projek swasta yang tidak melibatkan wang kerajaan menjelaskan, dahulu projek pembinaan KLIA, pusat pentadbiran Putrajaya, Menara Berkembar KLCC dianggap membazir.

''Hari ini kesemua itu sudah menjadi mercu tanda kepada negara. Sama juga jambatan Pulau Pinang. Apa yang dibuat itu merupakan petanda kepada pembangunan negara di mata dunia," tegas beliau.

''Pembinaan KLIA-East@Labu ini merupakan satu lagi usaha kerajaan untuk memberi peluang kepada orang ramai untuk mendapat kemudahan yang lebih selesa dalam aspek pengangkutan," ujar beliau.

Ketika ini Syarikat AisAsia Bhd. banyak mengendalikan perkhidmatan penerbangan ke luar negara melalui AirAsia X (wide-body) yang memerlukan keluasan yang lebih besar untuk mendaratkan pesawat milik mereka termasuklah Airbus, A330-300.

''Bangunan LCCT lama adalah bersifat sementara ketika Syarikat AisAsia Bhd. mula mahu beroperasi di situ. Kini kita bangga apabila syarikat itu semakin berkembang dan memilih negeri ini untuk mengembangkan perniagaan untuk tempoh jangka panjang," ujar Mohamad.

Apabila siap nanti, LCCT sedia ada boleh kembali kepada tujuan asal pembinaan sebagai terminal kargo dan bagi urusan penumpang operasi Syarikat AirAsia Bhd., ia akan dibuat di bangunan KLIA-East@Labu di lokasi baru nanti.

Mohamad memberitahu apabila projek itu berjalan kelak ia akan juga membangunkan satu jalan kereta api pantas - Express Rail Link (ERL) dari Kuala Lumpur ke Seremban dan disambung ke kawasan LCCT melalui pembangunan dalam Rancangan Malaysia ke-10 (RMK-10) selain rangkaian jalan raya yang lebih baik.

Terdahulu beliau menyampaikan sumbangan Tahun Baru Cina berupa wang tunai dan hamper kepada 20 orang warga emas pesakit buah pinggang dari Pusat Hemodialisis Mawar Cawangan Rantau, di sini.

rizalhakim

January 19th, 2009, 07:51 AM

LCCT: AirAsia sepatutnya fokus perniagaan teras
KUALA LUMPUR 16 Jan. - AirAsia Bhd. sepatutnya memberi fokus kepada perniagaan terasnya sebagai syarikat penerbangan tambang murah kerana perniagaan lapangan terbang tidak menjaminkan keuntungan.

Penganalisis OSK Research, Ng Sem Guan berkata, mengambil contoh Senai Airport Terminal Services Sdn. Bhd. (SATS), yang mengambil alih Lapangan Terbang Antarabangsa di Johor daripada Malaysia Airports Holdings Bhd. (MAHB) pada 2003 masih lagi bekerja keras untuk meraih keuntungan.

Berikutan itu beliau mempersoalkan mengapa AirAsia berhasrat untuk mengendalikan lapangan terbang sendiri di Pulau Pinang.

''MAHB telah menawarkan caj perkhidmatan penumpang (PSC) dan perkhidmatan keselamatan penumpang (PSSC) yang rendah bagi penumpang yang berlepas dari Terminal Penerbangan Tambang Murah (LCCT) di Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) dan Kuching.

''Oleh itu, kami berpendapat MAHB akan mengenakan pakej yang sama sekiranya LCCT dibina di Pulau Pinang.

''AirAsia juga menikmati pelbagai insentif pendaratan percuma dan yuran letak kapal terbang dengan memperkenalkan laluan baru, oleh itu tidak semestinya AirAsia mampu mengekalkan kos lebih rendah jika mengendalikan lapangan terbang sendiri,'' katanya dalam nota penyelidikan.

OSK Research memberi reaksi itu ekoran keputusan AirAsia untuk mendapatkan lesen sebagai pengendali lapangan terbang di LCCT barunya di Pulau Pinang dengan alasan untuk mengekalkan kos yang lebih rendah.

Cadangan membina LCCT di Pulau Pinang itu dijangka menelan kos sebanyak RM120 juta.

Ia merupakan 'perjuangan' kedua syarikat tersebut selepas mendapat kelulusan membina KLIA-East di Labu.

Sem Guan berkata, OSK Research tidak terpengaruh cadangan KLIA-East dan LCCT di Pulau Pinang kerana kedua-duanya tidak mempunyai kesan keuntungan kepada kewangan AirAsia dalam jangka pendek.

Bagaimanapun, Sem Guan dalam ulasannya menyokong pembinaan LCCT baru di Pulau Pinang atau meningkatkan infrastruktur di lapangan terbang sedia ada bagi menyediakan lebih banyak laluan baru, khususnya penerbangan terus antarabangsa dan menyediakan lebih banyak rangkaian penerbangan ke negeri itu.

''Dengan kedudukan Pulau Pinang sebagai negeri industri utama dan menjadi lokasi tumpuan syarikat multinasional, lapangan terbang yang besar akan meningkatkan lagi jumlah pelabur ke negeri itu.

''Ia juga akan meningkatkan pertumbuhan ekonomi negeri-negeri jirannya seperti Kedah, Perlis dan Perak,'' katanya.

rizalhakim

January 19th, 2009, 07:56 AM

KLIA East bukan projek mewah
Oleh Hussain Said
bhnews@bharian.com.my
Pelengkap kemudahan sedia ada: MB

SEREMBAN: Kerajaan Negeri Sembilan menegaskan cadangan pembinaan terminal penerbangan tambang murah (LCCT) yang dikenali KLIA East @ Labu, dekat sini bukan projek mewah, sebaliknya projek yang dibangunkan dan dikendalikan bersama AirAsia Bhd dan Sime Darby itu adalah pelengkap kepada kemudahan sedia ada.

Menteri Besar, Datuk Seri Mohamad Hasan, yakin projek RM1.6 bilion itu mampu memberi banyak manfaat kepada rakyat serta negara seperti pelaksanaan projek Proton, Jambatan Pulau Pinang, Lebuh Raya Utara-Selatan (Plus), Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) dan Putrajaya.

"Dulu ramai mengkritik dan mencemuh Proton yang dianggap membazir serta membuang duit rakyat, begitu juga projek lain tetapi semuanya kini jelas terbukti memberi banyak manfaat kepada rakyat dan negara.

"Jadi, bukan menghairankan apabila sesuatu projek baru yang ingin dilaksanakan dikritik dan dicemuh tetapi pembinaan KLIA East @ Labu bukan projek mewah, sebaliknya memberi kemudahan kepada orang ramai dan pelengkap kepada kemudahan sedia ada," katanya.

Beliau berkata demikian kepada pemberita selepas menyampaikan sumbangan sempena Tahun Baru Cina kepada pesakit haemodialisis di Pusat Haemodialisis Mawar Cawangan Rantau, dekat sini semalam.

Beliau mengulas mengenai perdebatan ramai termasuk mantan Perdana Menteri, Tun Dr Mahathir Mohamad yang mempersoalkan kewajaran projek KLIA East @ Labu.

Mohamad berkata, beliau yakin AirAsia dan Sime Darby sudah membuat kajian mendalam terutama dari segi implikasi baik dan buruk sebelum mengemukakannya kepada kerajaan untuk dipertimbangkan.

Katanya, kepesatan industri penerbangan tambang murah negara menjadi antara faktor mendorong pembinaan terminal baru itu bagi menggantikan LCCT di Sepang yang pada asalnya sebagai pusat kargo sebelum dijadikan terminal sementara.

erwinkarim

January 19th, 2009, 08:41 AM

comments from blog page of Wee Choo Keong (Wangsa Maju MP). some good points:-
* AirAsia shouldn't act alone
* AirAsia is doing a high-risk strategy, AirAsia is a bubble in works?
* establishment of transport czar to settle this, maybe boost malaysian aviation.
* airline doesn't like airport operators? -> doesn't happen in this country only.
* Should look at big picture, develop KLIA first.

-----------------------------------

I have been following the air transport industry for over 40 years, ever since when I was a teenager in Malaysia and even until now when I am living in London. Never have I seen so much turmoil , or potential turmoil , in the Malaysian air industry.

I know Mr Tony F. has been referring that KLIA East@Labu is not much further, if any, from Terminal 5 and Terminal 1 in London Heathrow Airport, but the big difference is both terminals in London Heathrow use the same runway and control tower , same train and road highway connecting systems, and KLIA East and KLIA do not. Also, whenever I mentioned to my British friends in London about what Air Asia plans to do, they shook their heads almost saying , “What is Air Asia doing? It is incredibly unreasonable.” However, it is without doubt the Mr Tony F. cares for his airline and he does have concerns on how to manage his airline given his dissatisfaction with KLIA and MAHB.

As I have no vested interests in either parties, my views are objective and I do not take sides.

For what’s it’s worth, here are my comments:

1) There are two main parties who are not in good terms with each other - Malaysian Airports Holdings Bhd (MAHB) and Air Asia.

2) Air Asia moves away because it claims to be dissatisfied with what was being offered , and what may be offered in the future,
by MAHB.

3) It is not unusual that the airport operator and the airlines that uses the airport do not always see eye-to-eye. It is evident even here in London between some British/UK airlines and BAA, the owner and managers of London’s Heathrow, Gatwick and Stansted airports. Some of the complaints are similar, the airlines would accuse the airport operators of not providing the standard of service they were paid to do, and that service charges are too high, etc.

5) If Air Asia has all it wants from the government and builds KLIA East, it will affect the entire future of aviation in Malaysia.

6) KLIA, which is already under utilised especially in terms of its runway, will become even more under utilised if Air Asia moves away. It will suffer greatly if connectivity, eg the number of cities it serves so that passengers can connect from one flight to another to fly to another city, will be significantly reduced.

7) As a consequence of the above, KLIA, as the main airport of Kuala Lumpur and indeed Malaysia, as a hub will be affected. It is competing with other strong contenters in the region, eg Singapore Changi, Bangkok Suvarnabhumi, Hong Kong Chep Lok Kok airports. The Malaysian govt. should support KLIA, and certainly, it is really unwise to allow KLIA East to be built as this has the effect of making KLIA even more uncompetitive.

8) The ordinary man should realise that one of the first priorities of any airline is to make as much profit for their company and share holders as possible, at least in the long term. Air Asia is no exception

If Air Asia ever finds itself in a near monopoly situation on some routes, by chasing away routes from MAS, you can almost bet that it will raise its air fares to the level that it will make maximum profit. “Peanut” fares will go out of the window. (I say this by looking at some “budget” fares from European low cost airlines are not always “budget” even though the standard of service is.) In the short term, Air Asia may reduce prices to attract customers, what can be termed as a “lose leader”, but when the market picks up, it will recoup it by raising fares. If it does not raise fares, it will raise profits by making other “stealth” or “hidden” charges. Again, you only need to look at some Low Cost Airlines in other countries including the European Union. A “£1″ flight from A to B could end up being like “£50″ before you board the aircraft! Malaysians should not be hoodwinked that Air Asia is all good. It is , after all, a trading company, it is not a Charity ! It looks after itself and its shareholders before it looks after you, the travelling public !

9) Air Asia Holdings seems to be following a very high risk strategy. Air Asia Holdings, or Mr Tony F., appears to think that by building his own airport and increasing routes, especially long haul inter-continental routes, it will create its own hub from cities around the world and connect those passengers onto Air Asia’s short haul routes. It feels it does not need to cooperate with other airlines to “feed” traffic for its business. (Most world airlines are doing the opposite, they are either merging or having cooperations with each other. )This is very high risk. In the relatively recent past, similar long haul low cost airlines which goes it alone have gone bust - Oasis Hong Kong , and Zoom Airlines. Air Asia , or Air Asia X would be very fortunate to defy that trend. So, let’s say, what happens if Air Asia X is not successful -what if oil prices rises yet again or demand for long haul flights fall due to the Credit Crunch- where would that leave Air Asia’s grand plan of connecting people from all over the world onto their shorter route flights does not succeed? . And God forbid, what if Air Asia goes bust?

Another big flaw of an airline is it tries to grow too quickly and it encounters problems with great increase in size - take for example, Braniff Airlines (USA), Air Europe (from the UK), People’s Express of the USA (Yes, People is in “Rakyat”!), and Zoom. Air Asia seems to be growing at an alarming rate. Let us hope it is not like some internet bubble , or property bubble because if it is, you know where it led those industries to! At the moment, most airlines, including Low Cost Airlines are reducing capacity, but what Air Asia appears to be doing, it is increasing capacity. Let’s hope that Air Asia is right, and the others are wrong, but it is still playiing a very high risk game. Maybe Mr Tony F is like a cat with nine lives and good for him!

4) One possible solution for this debacle (between MAHB and Air Asia) is to have a strong mediator. The government has to appoint this mediator. Maybe they can appoint an all-powerful “Transport Czar” that has powers to decide in the interest of the nation instead of just the parties. He will report directly to the Prime Minister.

The Transport Czar has a clear National Air Transport strategy and objectives.

He believes that MALAYSIA’S NATIONAL INTERESTS COME FIRST. Not individual parties like Air Asia or MAHB.

He aims to make KLIA a strong hub as one of his objectives, not weakens it. He should encourage competition between airports in the neighbouring countries, not within the same country especially when they are just 8 kilometres of so apart serving the same city.

He should see KLIA like Changi, Heathrow, Frankfurt, where they add new terminals but using the existing runways, etc. KLIA will become an “aero-tropolis”.

It is also very important that he ought to address the issues which is of concern from both parties, Air Asia and MAHB. He has to be a diplomat, but a strong one. He will not be bullied by any side.

He should try and find some kind of agreement so that it will enable Air Asia to remain in KLIA, perhaps with its own air terminal of the similar high standard comparable to the main KLIA air terminal, and not like the shoddy(?)/low standard(?). Maybe MAS can also have its own terminal.

The Transport Czar may also be flexible and inventive.

If the present “marsh” land for the new LCCT is of concern to Air Asia, and he is absolutely certain this cannot be fixed before long to build the terminal, perhaps another piece of land somewhere within the peripheral of KLIA can be built. Hopefully, it will be as close to the main KLIA terminal as possible. Air Asia will still be using the same ICQ (air traffic control), and the same runways as the present KLIA. This will reduce duplicity.

It will be good if he has the power to recommend to Parliament to rescind the permission for Air Asia and Sime Darby to build an airport so close to KLIA, thus potentially damaging the future of the country’s largest airport.

The Transport Czar could also say to Air Asia that he will advise the government in not providiing the highways and rail links with the new airport KLIA East should ever it be built (if he does not have the authority to rescind permission to build it).

There should be better , cheaper and faster links between the different terminals in KLIA to improve connectivity. Maybe a special bus service either with low fares, or even free transfer, can be created, to link between the terminals. Later on, the monorail can be extended to cover all the terminals.

MAHB may need to have a kick up the back and whipped into shape, to improve its performance.

The Transport Czar should also bear in mind that the country and its air transport infrastructure can bear different scenarios. That it can have a good airport hub in KLIA with air terminals built in time to serve its airlines, especially its home-based airlines, Air Asia and Malaysia airlines.

He should also not ignore the well-being of Malaysia Airlines, the national airline. He should encourage Air Asia to be successful as well as that of Malaysia Airlines. At the moment, it appears Air Asia sometimes is benefitting at the expense of MAS - eg Singapore-KL routes, domestic routes, etc.

It may be difficult but it would be advisable , and better, if Air Asia and Malaysia Airlines work together. MAS can provide the long haul passengers to feed into Air Asia’s short and medium haul routes. MAS and Air Asia, could also coordinate their schedules so that one flight from one airline can smoothly transfer to another. Or transit passengers from Air Asia does not have to check-in again if they fly MAS flights. MAHB, at KLIA, can provide much connection between terminals served by Air Asia and MAS.

In addition, perhaps, Air Asia could be given restricted access to Subang as MAS has with Firefly. It can have a fixed number of domestic routes from Subang but the bulk of its routes still ought to fly from KLIA. This will immediately ease Air Asia’s concern about not having enough airport terminal capacity at KLIA.

The Transport Czar may also have another card up his sleeve. He may be given the power to liase with Malaysia Airlines. If Air Asia is reluctant to cooperate with the country’s national policy, (as I think the govt still is a big shareholder in MAS) he may encourage Malaysia Airlines to create its own Low Cost Airlines, as Singapore Airlines, Thai Airways, Qantas etc have done. MAS already have FireFly, all it needs is to “beef up” Firefly, give it a few more aircraft including a few Boeing 737s and it can compete quite well with Air Asia.

The Transport Czar, should also advise the government, that any airport projects should go through a thorough consultation so that the people of the country have a say. Enviromental issues should also be considered for any major airport development.

5) I think pressure groups, like Friends of the Earth , should also make their voices heard.

6) Malaysians citizens, who feel that Air Asia should remain in KLIA , they can also write to their MPs to express their views. In addition, they can write to Mr Tony F of Air Asia and say what you think. If you say you will not fly Air Asia because of what it is doing , I think Mr Tony F. it will make Mr Tony F. think again .

7) Air Asia can be a great airline. But it should not be acting alone. It should cooperate with other parties within Malaysia. It can be a “win-win” situation if everyone cooperates. Otherwise,
everyone may lose. The nation cannot afford that.

Cerulean

January 19th, 2009, 11:04 PM

January 19, 2009 23:40 PM

Khazanah Not Supportive Of LCCT In Labu

KUALA LUMPUR, Jan 19 (Bernama) -- Khazanah Nasional Bhd, the government's investment holding arm, is not supportive of the plan to buiild a permanent low-cost carrier terminal (LCCT) in Labu, its managing director Tan Sri Azman Mokhtar said Monday.

He said the National Airport Masterplan should be used as a reference on what should be built for the sake of the country's development.

"Under the masterplan, 10,000 hectares have already been set aside, of which only about a third has been used," he told reporters after presenting Khazanah's annual review here.

He was asked to state Khazanah's stand over the issue.

According to Azman, the airport sector is one where the clustering or network effect is important.

"We cannot have a few airports here and there because then you cannot get the connectivity," he said.

Describing it as a national issue, Azman said: "Certainly we should follow through".

"We have the masterplan and we should go back to that. I am sure that AirAsia and Malaysia Airports can sit down and resolve (the matter) for the country's benefit," he said.

When building the airport, they should have software and hardware connectivity to enable seamless travel, Azman said.

"We are shareholders of Malaysia Airlines, we always maintain that both MAS and AirAsia can co-exist so that everybody can benefit," he said.

"In short, we do not support the Labu project. We should stick to the National Airport Masterplan as a lot of resources had been put in," he added.

Earlier this month, Sime Darby announced that it has received government approval to develop the proposed private LCCT project.

The conglomerate said the project was an integral part of its development plan for the Negeri Sembilan Vision City (NSVC).

NSVC is part of its Central Vision Valley (CVV) property development project spanning Selangor and Negeri Sembilan.

Sime Darby and budget airline AirAsia Bhd had proposed to jointly develop and operate the RM1.6 billion LCCT which will be known as KLIA-East@Labu.

The project will be privately funded.

The RM1.6 billion is an estimate of the cost of structures and the runway but does not include the 3,000-acre piece of land where it would be constructed.

-- BERNAMA

Again, I would like to emphasize that only the dumbest and the retard will support this stupid Labu Airport project

rizalhakim

January 20th, 2009, 03:50 AM

Khazanah does not back Labu terminal plan
Published: 2009/01/20

KHAZANAH Nasional Bhd says it does not support plans by Sime Darby Bhd and AirAsia Bhd to build a permanent low-cost carrier terminal (LCCT) in Labu, Negri Sembilan.

"We do not support the Labu programme. We believe that the right way to do it is to stick to the National Airport Masterplan (as) a lot of resources have already gone in (to this)," managing director Tan Sri Azman Mokhtar said yesterday, when asked for his views on the matter.

"You cannot have a few airports here and there because then you don't get the connectivity," he remarked.

He said AirAsia and Malaysia Airports Holdings Bhd (MAHB), operator of the current LCCT in Sepang, should sit down and resolve their issues.

"They can, and should, resolve that. For the country's benefit, we should be looking at building this next to (Runway 2 of the airport)," he said.

Khazanah holds a majority stake in MAHB.

Meanwhile, on MAHB's financial restructuring plan, he said it should be completed by the first quarter of this year.

rizalhakim

January 20th, 2009, 04:27 AM

On the proposal by Sime Darby Bhd and AirAsia Bhd to build a low-cost carrier terminal at Labu, Negri Sembilan, Azman said Khazanah was not in favour of it.

“The right way to do it will be to follow the National Airport Masterplan, for which 10ha have been allocated and only a third has been used,” he said.

He added that the aviation sector required a network or cluster that provided seamless connectivity for travellers.

“AirAsia and MAS should resolve the terms for national interest in terms of providing hardware and software connectivity,” he said, adding that both airlines should co-exist.

triple-j

January 20th, 2009, 07:41 AM

First thing first,

ONE body to PLAN, and has a FINAL SAY or FINAL DECISION on our general public transportation issues (air, rail, bus, ferry etc.) with concrete studies and justification

If our top guys (MOF or MOT or even PM himself) are in a big mess, then there will be a messy plans and eventually undesirable results will unsurprisingly occur.

Not try to blame govt. but they have to put their acts together. It is now their time to prove to the rakyat that they can manage all these issues. Otherwise expect even poorer results in the next election.

Don't they get it? When will they get it? With a lot of us, Msian people already lose faith and continue losing it in this current govt and they still not come up with a firm plan.

Well there are plans, temporary LCCT, then new permanent LCCT or wait, change to Labu...oh what about Firefly, oh put them at Subang...wait Air Asia want their own, hmmm...jeng jeng jeng Sime Darby said I have land.....then whoop!!! Labu is approved...

how about airport master plan...hmmmm.....

(same goes with our LRT, rail and busses)

IF, say, Mahathir in his era was weak, Proton, KLIA and Putrajaya won't see a damn slightest light to be materialized. Of course at the time protests, pessimists, critics, cynics etc. voiced out their opinions. Guess what? They are still here doing the same thing. Players may be different but the game remains the same.

Malaysian nth Plan, KL 2020 Plan, Msia Airport Master Plan...corridors here and there...what a waste of time and money involved in these studies/plans if not executed well!

rizalhakim

January 20th, 2009, 07:45 AM

Cadangan KLIA-East dibantah

Oleh DALIZA ARIFFIN
daliza@utusan.com.my

KUALA LUMPUR 19 Jan. – Khazanah Nasional Bhd. (Khazanah) hari ini membantah cadangan pembinaan terminal lapangan terbang tambang murah milik AirAsia Bhd. (AirAsia), KLIA-East di Labu, Negeri Sembilan kerana projek berkenaan bukan sebahagian daripada Pelan Induk Lapangan Terbang (PILT).

Pengarah Urusan Khazanah, Tan Sri Azman Mokhtar berkata, PILT perlu dijadikan sebagai panduan kerana pembinaan projek seumpama itu adalah isu nasional melibatkan pembangunan negara.

Beliau berkata, satu pertiga daripada 10,000 hektar yang diperuntukkan dalam pelan tersebut telah dibangunkan dan banyak sumber telahpun digunakan.

‘‘Ini bukan hanya isu Malaysia Airport Holdings Bhd (MAHB) tetapi ia adalah isu nasional, oleh itu kita perlu jadikan pelan induk itu sebagai panduan.

‘‘Saya yakin AirAsia dan MAHB harus berbincang dan menyelesaikan isu ini demi kepentingan negara,’’ katanya pada sidang akhbar mengenai Kajian Tahunan Khazanah 2009 kali kelima di sini hari ini.

Khazanah memiliki kepentingan dalam MAHB.

Menurut Azman, dalam perkara ini, tidak semestinya kedua-dua syarikat itu perlu di tempatkan secara bersebelahan tetapi apa yang penting adalah saling berkaitan (interlining).

‘‘Sebagai contoh, melaluinya orang ramai tidak harus turun ke bawah untuk mendapatkan bagasi masing-masing atau sebagainya.

‘‘Sebagai pemegang saham dalam MAHB, kami mahu selalu mengekalkan pentingnya peranan Malaysia Airline System Bhd. dan AirAsia kepada kami untuk kepentingan negara,’’ jelasnya.

Sementara itu, pada sidang akhbar berkenaan, Azman berkata, Khazanah akan melabur RM58 bilion dalam tempoh tiga tahun bermula 2009 untuk pembangunan Iskandar Malaysia, sektor tenaga, telekomunikasi, pelancongan, infrastruktur, penerbangan, pertanian, sains, penjagaan kesihatan dan teknologi.

‘‘Tumpuan utama pelaburan bagi tahun ini dan tempoh jangka sederhana adalah dalam sektor domestik yang memiliki kesan pengganda tinggi dari segi ekonomi dan peluang pekerjaan.

‘‘Dalam tempoh tiga tahun akan datang dianggarkan sebanyak RM58 bilion akan dilaburkan khususnya dalam pembangunan Iskandar Malaysia, projek jalur lebar berkelajuan tinggi (HSBB), tenaga dan sebagainya,’’ jelasnya.

Sejak lima tahun lalu, Khazanah dan syarikat berkaitan kerajaan (GLC) sudah membelanjakan kira-kira RM36 bilion dalam ekonomi domestik.

Mengulas mengenai prestasi Khazanah dalam tempoh enam bulan hingga 31 Disember lalu, Azman berkata, portfolio pelaburannya susut seiring dengan pasaran global dan serantau.

‘‘Keseluruhan nilai portfolio aset susut kepada RM70.4 bilion berbanding RM88.2 bilion dalam tempoh kajian.

‘‘Nilai bersih juga susut kepada RM33.7 bilion pada 31 Disember 2008, berbanding RM53.1 bilion pada 31 Mei lalu,’’ jelasnya.

Khazanah adalah sayap pelaburan kerajaan yang di amanahkan memegang dan menguruskan aset komersial kerajaan dan melaksanakan pelaburan strategik.

Azman menambah, pulangan pemegang saham bagi syarikat tersenarai miliknya susut 35.7 peratus pada 2008, sejajar dengan penurunan 35.7 peratus penanda aras pasaran, Indeks Komposit Kuala Lumpur pada tahun lalu.

Bagaimanapun, Azman berkata, kedudukan kewangan di bawahnya kekal kukuh dengan kelebihan nilai aset berbanding liabiliti sebanyak 1.9 kali ganda dan sebahagian besar syarikat milik kerajaan di bawah Khazanah sudah mengukuhkan kedudukan kewangan masing-masing dalam tempoh tiga hingga empat tahun akan datang.

Lastresorter

January 20th, 2009, 07:52 AM

next january dah terus nak start? semua designing process, land purchasing, road aligning, selecting contractors, erl/ktm rail extending plan, all are done within 4-5 weeks?!!!!

are they trying to cook instant noodle or what?

so so so sucpicious on this project.....uhh, do they wanna give us idea that ong tee kiat is more corrupt than samy vellu?

In fact from a colleague of mine who used to work under Ong Tee Kiat said he's actually a wolf in sheep's clothing! He's one of the more corrupted ministers who wants to portray a very hardworking image.

That aside, my gut feeling tells me there are phishy things going on in this project.

Lastresorter

January 20th, 2009, 08:00 AM

I used to admire Air Asia. Now I think they are just arrogant.

And nowadays, Sime Darby seems to make headlines for all the wrong reasons. First the IJN fiasco, now this...

Yeah, recently I stopped taking AirAsia because I think they are going overboard and act like tai-ko. Tiger Airways is a cheaper and more humble alternative if you have to fly to Singapore, everyone.

Cerulean

January 20th, 2009, 09:33 AM

Malaysians (not just Melayu) mudah lupa!

This is a project initiated by an airline which con the whole people of Borneo and the government by pretending to care about the rural air connections but used the AOC given to establish its long haul LCC unit, now known as AirAsia X, only several months after acting in the disguise of FAX. Reason given, the whole venture was not profitable enough although it is being subsidized by the government.

This airline fooled us once. Are we going to be fooled twice with this new stupid Labu Airport proposal? Are we all that stupid?

They don't care about the public Malaysians and the nation's interest, they are all just care about their pockets.

patchay

January 20th, 2009, 09:40 AM

:banana::banana: seems like Khazanah had just slammed Tony!!!

anyway i think if you wish to point finger, that person is Ong Ta Kut (aka Ong Tea Cat).

rizalhakim

January 20th, 2009, 09:40 AM

send ur comment n feedback to http://www.airasia.com/site/my/en/pageWithMenu.jsp?name=Your%20Comment&id=ca6ba402-7f000010-53aed400-f8fa9285&rootId=c9da1d60-7f000010-53aed400-530af71a&parentId=ca6ba402-7f000010-53aed400-f8fa9285 and they will answer ur questions....

Lastresorter

January 20th, 2009, 11:23 AM

nazrey

January 20th, 2009, 03:32 PM

Malaysian news is hot for nowadays! heheheheh hahahahah!

nazrey

January 20th, 2009, 03:33 PM

Khazanah: We don’t support LCCT in Labu plan
20-01-2009:

http://www.theedgedaily.com/cms/storage/images/com.tms.cms.image.Image_f21a501f-cb73c03a-6545d200-bb110d1c/1/azman-mokhtar_inside.jpg

KUALA LUMPUR: Khazanah Nasional Bhd does not support the idea of a proposed low-cost carrier terminal (LCCT) in Labu.

Its managing director Tan Sri Azman Mokhtar said that the National Airport Master Plan should be the reference point for the development of airports in the country. He also said that airport was one segment of the economy where it has to be clustered to have the impact.

“The master plan should be followed through. There are 10,000 hectares set aside in KLIA (Kuala Lumpur International Airport) now,” he said during a press conference to announce Khazanah Nasional’s annual review for 2009.

“In short, we don’t support the plan for a LCCT in Labu,” he said.

Over the past three weeks, a proposal by Sime Darby and AirAsia to build a new LCCT in Labu, which has received the approval from the cabinet, has come under scrutiny because all airports generally come under Malaysia Airport Holdings Bhd (MAHB) which is substantially controlled by Khazanah. Also, MAHB has plans to build a permanent LCCT in KLIA.

AirAsia is not keen on MAHB’s LCCT because of cost issues and timeliness in delivery. MAHB on the other hand contends that it is prepared to start work on the LCCT and even funding is available.

“Both parties can sit down and talk on the terms (of operating in MAHB’s proposed LCCT) for the benefit of the country,” he said.

On Proton Holdings Bhd, the managing director of Khazanah reiterated that the line is open for a strategic alliance but the industry as a whole is now going through a period of consolidation, which did not give much space for talks with other manufacturers.

He said that manufacturers were consolidating their business and Proton has to wait before any serious talks can take place.

On TMI International Bhd and its payment of a RM4 billion debt to Telekom Malaysia Bhd, Azman reiterated that a scheme to resolve the funding issue would be unveiled by the end of the first quarter.

“TMI’s deleveraging and funding plan will happen. We are looking at the whole capital structure and it could be a rights issue or an equity linked structure.”

TMI needs to raise funds to repay its parent company Telekom Malaysia RM4 billion and get a permanent financing for a bridging loan of RM6.45 billion it took for purchasing an equity stake in India’s Idea Cellular Ltd.

YeahWho

January 20th, 2009, 08:11 PM

Magician

January 21st, 2009, 02:38 AM

Why not do it in this way:

Air Asia - continue to build the KLIA-East at Labu as you wish, since AK has claimed that building a new LCCT benefits AK and passengers.

KLIA - continue to expand the current LCCT to cater more budget airlines within South East Asia and perhaps airlines from other nearby countries. This will make more competition and hopefully we as travelers will enjoy the price war and get a lower priced ticket!

Passengers - well, we are paying for the service. We are not RELYING on their service. If KLIA-East creates such hassle for transit/connectivity/whatever reason, we can always use MAS, which is our Malaysia's flag carrier! If not, Firefly is there to serve us too?

So, time will tell who will win.

This is just my naive way of thinking!:)

MALAYSIAN

January 21st, 2009, 05:24 AM

i support the labu project because the project can reduce AirAsia fares, i don care about wat Khazanah and MAHB said, they only scared their money will loss, the masterplan in KLIA impossible to carry on because of the ERL, if they wan to build a permanent lcct, they will build it in very long time! :bash:

patchay

January 21st, 2009, 06:13 AM

i dont udstand just becoz of ERL they cant build???? Realign the ERL lah!!!!

musang

January 21st, 2009, 09:33 AM

just a gen statement.. i sposed some people can be a bit too greedy and selfish when it comes to protect their interest. bottom line is, work together irrespective of whatever differences that may arise.. after all it is meant for all, not just for a segment of the market la. aiyo.

rizalhakim

January 21st, 2009, 10:08 AM

Big Money: LCCT — an acid test for Najib
By M Shanmugam
Email us your feedback at fd@bizedge.com

Datuk Seri Tony Fernandes and Air*Asia Bhd have fought many battles in the last 10 years in an effort to grow the airline from a non-entity to Asia's leading low-cost carrier. But the fight for a new airport — KLIA East — will be the mother of all battles for Fernandes.
He is not only up against Malaysia Airports Holdings Bhd (MAHB) and entities such as the Minority Shareholder Watchdog Group (MSWG) but also a group of politicians who see the project as being among Prime Minister Datuk Seri Abdullah Ahmad Badawi's last few mega-projects before he steps down in March.
Leading the charge is none other than former prime minister Tun Dr Mahathir Mohamad, who has persistently found fault with Abdullah's administration over the last four years. Mahathir, with his typical sarcasm, termed the proposed low-cost carrier terminal (LCCT) the "epitome of privatisation" as the government will not provide any funds even to maintain the customs and immigration checkpoints in KLIA East.
But who can forget that the very reason an LCCT is being considered in Sepang or Labu is the mega Kuala Lumpur International Airport (KLIA) that was built during Mahathir's era at a cost of RM10 billion despite many objections? Until today, many still question the move from Subang to Sepang when there was ample land in the vicinity of the old Subang airport for expansion.
One of the large plots in Subang is where the Rubber Research Institute (RRI) is located. It is now said to be the domain of only well-connected housing developers. There were other large tracts in Subang as well, that, incidentally, are mostly owned by Sime Darby Bhd, which has agreed to provide AirAsia with the land to build its LCCT in Labu.
Today, most of the Sime Darby land has been converted to residential and commercial developments, but some 15 years ago, there were no such plans.
Going forward, the biggest hurdle for the the AirAsia-Sime Darby LCCT will be time, which is running out fast.
In less than three months, Abdullah will hand over the reins of the country to incoming Umno president Datuk Seri Najib Tun Razak, who will also be the prime minister.
Whether Najib's administration endorses the new LCCT is left to be seen, especially as there is a sizeable anti-Pak Lah group that is against the project. It is not unusual for a new prime minister to reverse decisions made by the previous prime minister. In 2003, when Pak Lah came to office, there was a huge anti-Mahathir tide, in which two projects awarded by Mahathir to companies linked to Tan Sri Syed Mokhtar Al-Bukhary, who until today enjoys the confidence of the former prime minister, were terminated.
The first was Syed Mokhtar's takeover of Sarawak Hidro Sdn Bhd, which owns the Bakun Hydroelectric Dam in Sarawak. The Ministry of Finance, which owns Sarawak Hidro, claimed that the terms of the deal were not met within the deadline and terminated the sale.
Another was the shelving of the double-tracking project that Mahathir's administration had awarded to a joint venture between MMC Corp Bhd, a company controlled by Syed Mokhtar, and Gamuda Bhd.
"Najib could well shelve the new airport project but it is unlikely that it will be done in such a manner that the operations of AirAsia are jeopardised. He understands the needs of the business community and makes fast decisions," says a political observer.
Despite the political undercurrents of the proposed LCCT, one fact that no party has disputed is that a new LCCT is needed to cater for AirAsia's growing presence. There is no denying that the airline's growing passenger traffic will soon choke the present facility. Malaysia has very few world-class brands and AirAsia is one of them. So, every effort must be made to help the LCC.
To be fair to MAHB, it has so far extended assistance to AirAsia and does not deny that there is a need for a new facility for LCCs. MAHB has plans to build one in the vicinity of the existing LCCT. The critical question here is cost. At what price is MAHB going to build the new facility?
AirAsia has so far stated that the cost for the new facility at KLIA East, excluding land cost, is RM1.6 billion. The LCCT will cater for up to 50 million passengers. Will MAHB's cost be comparable?
Already, tongues are wagging that certain portions of its expansion job will be carved out to some well-connected parties.
The KLIA was built at a cost of RM10 billion in 1998 to cater for 25 million passengers. The main terminal itself cost some RM3.5 billion, according to reports. In contrast, AirAsia's terminal, proposed some 10 years later, is estimated to cost RM1.6 billion.
So, one can imagine the layer of fat that was creamed off by rent-seekers. And who pays the cost? Joe Public once again in the form of high aeronautical charges.
It does not make sense to have two major airports so close to each other. At the same time, AirAsia needs a new facility fast and cheap, which Sime Darby is prepared to partly facilitate. It will be a great loss to the country if AirAsia is not supported in its operations. Nor should such support be viewed negatively as the situation is no different from that of MAS at the height of its problems. Support was forthcoming then.
For MAHB, the threat is real. The cost of the new terminal must be made transparent. It cannot build a spanking new airport at a high cost and expect airlines that are sensitive to cost, such as the LCCs, to operate from there.
The drive to build facilities at the lowest possible cost will fall on Najib's shoulders.
He handled the Institut Jantung Negara (IJN) issue well, with Sime Darby eventually withdrawing its privatisation bid to save the government some embarrassing moments. But a new LCCT is needed and he will have to decide on something his predecessor started.

OshHisham

January 21st, 2009, 02:29 PM

why many peoples put the building cost as an issue?! we must look, know, and understand from the economic point of view. not from the opportunist politicians' point of view.

in the time of this...unstable economic situation, the government via MAHB needs to spend more. the more they spend, the more contractors, suppliers, designers, engineers, and many more personnel will get the benefit from the allocation. and not to forget, the aesthetic of the design is a must in order to get publicity. also, the technology and the building method.

kalau design ala kadar dan murah, setakat nak sedapkan ahli2 politik yang suka putar belit fakta, then....design macam kilang saja lah yang paling murah.....

patchay

January 21st, 2009, 04:06 PM

from LKS
Air Transport Policy?

The storm that is generated by the government’s decision to give the go-ahead to the Sime Darby-AirAsia consortium to build a brand new airport at Labu continues to blow unabated.

On the one side is a government GLC, Malaysia Airports Holdings Berhad (MAHB) which is being accused by AirAsia of not being able to meet AirAsia’s needs of no-frills service, and yet attempting to charge AirAsia “exorbitant” landside charges.

On the other side is MAHB which, through its website, defends its record of meeting clients’ expectations, and asserting that airport charges are being set by the Government, not by the airport operator.

What the public is inclined to accept is that the present LCCT is in a shambles, and is probably on a par with some domestic Indian airports.

MAHB defends this, as they have spent RM 170 million to build a new extension, which is now partially opened, and they say that the upgraded LCCT should be able to cater for up to 10 million passengers per year until 2013. After that, MAHB says that they have plans to build another terminal that is contiguous with the KLIA main terminal, and that this terminal could be ready by 2013.

AirAsia says that this is baloney, for MAHB have never really delivered commitments on time (they point to the current state of affairs at LCCT as an example) and that any delays would negatively impact AirAsia’s business model.

AirAsia defends the Labu airport proposal as a “must have” for the airline’s long term viability. It will have 100 narrow-body and wide-body aircraft by 2014, and they need gates and parking spaces.

AirAsia is so desperate that they are willing to spend money to build the Control Tower, CIQ facilities, the KTM extensions and the ERL extension without the government spending a single sen. They also say that the road connections will also be built by the private sector. This prima facie is a good deal for the government, and hence the EPU has issued the go-ahead letter to Sime Darby.

However, the more relevant questions to ask is whether this project is good for the rakyat in the long run, and whether this project is consistent with the country’s air transport policy.

The KLIA masterplan was conceived during the Mahathir era, and had proposed that KLIA be built on a modular basis to eventually cater for 100 million passengers per annum.

The masterplan talked about connectivities, both airside and landside, and eononomies of scale to avoid duplication of certain services.

The ultimate objective was to build a transport hub to rival Changi and Bangkok’s new airport. Today, only one-third of KLIA’s allocated landbank is used, and hence expansion around KLIA is not a constraint.

To say that “not a single sen of the rakyat’s money will be used” in the construction of Labu airport is misleading, for there is socio-economic impact on air travellers, and on the people living around the airport site.

Each time a new airport is built, you uproot people and you affect the ecology of the area. Heathrow’s third runway took 10 years for approval.

The Labu airport took less than a year for the EPU to approve, although AirAsia claims on its website that an “extensive and in-depth study has conducted by the government”.

Then there is duplication which by its very nature is a waste of resources. Take taxi and bus transport. Each terminal (KLIA, Subang, LCCT) now has its own “exclusive” taxi service. Connectivity between KLIA and LCCT is so bad that buses run hourly, and taxis charge you RM30 to get rrom KLIA to LCCT and vice versa.

We can assume that Labu will have its own exclusive taxi and bus service. Labu airport will need a new set of air traffic controllers, a new set of CIQ personnel, a new set of public security measures.

AirAsia has bravely said that they are even willing to put these personnel under the payroll, which is commendable, but of course not practical as these people have a duty of care to the rakyat and not to AirAsia.

The Transport Minister, Dato Seri Ong Tee Keat had said about 10 days ago that the Labu airport proposal was approved by the cabinet, and not by his ministry alone.

He then went on to tell reporters to direct further questions at the Ministry of Finance as the approval letter was issued to Sime Darby, a GLC.

This is clearly an outright abrogation of responsibility by the Minister who is supposed to be in charge of Air Transport Policy, and Aviation Policy.

If we all recognise that AirAsia needs to have its own terminal, and that MAHB is by its very nature a reactive rather than a pro-active agency, then the solution is quite obvious.

Let AirAsia build its terminal at KLIA. Kennedy Airport in New York has different airlines operating different terminals but using common airside facilities.

The KLIA masterplan envisages the creation of an underground driverless train link between the current terminal and future terminals. This should be expedited. There should be free shuttle bus services between the terminals to be paid for by the terminal operators.

This is the time for the Transport Minister to show some leadership, and not abrogate responsibility to other ministries.

This is the time to demand that AirAsia and MAHB sit down to discuss what is best for the traveller and for the country.

This is the time to demand that both protagonists stop the cyberwar that is making us the laughing stock in the region.

Labu Airport

The interest AirAsia has in building a new airport shows that there must have been good money making opportunities with the project. The sources of revenue could include appreciation of land value in the vicinity of the airport apart from the contract works associated with the building activities. That might also be the reason why KLIA has been built to cater for 125 million passengers a year when the present flow is only 25 million, a fifth of its intended capacity 10 years after KLIA has been in operation. AirAsia expects to have 20 million passengers in 10 years. This together with the increased in passenger volume in 10 years at KLIA alone would still not exceed the capacity of 125 million planned for KLIA.

Whether KLIA should have been planned for 125 passengers or only for half that number when it was built more than a decade ago, and thus deprive others of the opportunity to make money along similar paths should have been debated then. Now that a site has been found for an airport larger than the capacity needed for another 50 to 100 years and transportation network have been put in place, it would be more economical for the country to build extensions at the current site to take care of the need of AirAsia, than to build an airport at a different location. AirAsia must have taken into account he cost of transportation network to the new site it has proposed that it considered it fit to have it at Labu, 10 KM from KLIA.

Many have expressed concern on the safety of having two airports within 10 KM or two minutes of flying time when there are different controllers for the two airports. Besides, it would cost more to build an airport at Labu and the extension of transportation network than to build similar facilities of the new airport as an extension of KLIA. The advantage is that passengers who travel on cheap flights by AirAsia can get connection to other destinations offered by others operating at KLIA and vice versa.

A few persons would make the decision to build a new airport at Labu, and millions of passengers would experience the inconveniences arise thereof, and for generations to come. EPU should have the expertise to decide the proper use of national resources, whether the funds for the Airport comes from the government or from private sector. Surely the additional expenditure involved in building a new airport at Labu could be utilized for other investments that would bring higher economic returns.

patchay

January 22nd, 2009, 07:42 AM

KennySia APPROVES KLIA East Labu

http://www.kennysia.com/archives/2009/01/in-support-of-k.php

Lastresorter

January 22nd, 2009, 09:19 AM

Press Statement by Malaysia Airports Holdings Berhad

Kuala Lumpur, 5 January 2009

In recent weeks, Malaysia Airports Holdings Berhad (MAHB) has noted numerous comments made with regard to the current Low Cost Carrier Terminal (LCCT) at KLIA. It has always been MAHB's view that issues are best resolved through proper consultation rather than through the media. However, MAHB feels that a need has arisen whereby we are duty-bound to clarify the statements that have continually been made in the media.

MAHB wishes to categorically state that we fully support the development of low fare travel in Malaysia and recognise the role that AirAsia has played in this development.

THE LOW COST CARRIER TERMINAL

When AirAsia moved to KLIA in mid 2002, its operations expanded and therefore needed more space at the Main Terminal for check-in counters as well as additional departure gates. Over and above this, AirAsia's business model did not require the use of aerobridges, and the available baggage and check-in systems. Also, AirAsia needed to have power-in power-out apron operations. As long as AirAsia remained at KLIA's Main Terminal its growth would have been hindered.

To enable AirAsia to grow and achieve greater operational efficiency, the best solution was to provide them with a separate facility to meet their operational requirements. Therefore, it was decided that a separate temporary facility be built for low cost airlines. Several sites were identified for this purpose. The present site was chosen because an apron was already in place and the land was already prepared for development, thus allowing for the LCCT to be built quickly and accommodate AirAsia's growth. It was completed within nine months with a capacity for 10 million passengers and 30 aircraft parking bays. It also had a provision for expansion of up to 15 million passengers.

The design of the terminal was based on AirAsia's requirements to cater for their business model which included no aerobridges, no bussing facilities, dedicated check-in counters, and dedicated baggage system. Although MAHB had a different view as this would be inefficient use of the facilities, we accommodated these requests.

In discussions held for the design of the LCCT in 2003, AirAsia had projected that it would hit 10 million passengers by the year 2012. Three important events since then, however have altered this projection. Firstly, AirAsia managed to secure more international rights than originally expected. Secondly, the routes rationalisation exercise provided AirAsia more domestic routes. And thirdly, AirAsia expanded its business model to include wide-body aircrafts for long-haul operations, which was not in their original plan when the terminal was first designed. Based on AirAsia's business model, the terminal and apron were designed for narrow-bodied aircraft fleet only. Nevertheless, MAHB recognised the variation to their business model and accommodated to these changes.

In fact, as the use of wide bodied aircrafts at this terminal would cause congestion, MAHB had suggested that AirAsia should use the Main Terminal for its wide bodied, long-haul operations. However, as this was not suitable for AirAsia as they wanted to have a quick transfer for their passengers, MAHB acceded to AirAsia's request to also operate wide-body aircrafts from the LCCT.

To further enhance passenger comfort, MAHB also incurred additional costs in constructing covered walkways for passengers, a food garden and expanded its vehicle parking bays.

In order to accommodate AirAsia's accelerated growth of over 10 million passengers this year, expansions to the temporary terminal for 15 million passengers have been brought forward three years ahead of schedule for completion in early 2009 at a cost of over RM170 million. This would double the terminal's international passenger capacity.

With the recent opening of the newly expanded international arrival hall and the soon to be completed international departure hall and public concourse, it is expected that the terminal congestion will ease. To further alleviate the congestion, MAHB has appealed to AirAsia to open up more check in counters per flight as there are many available at the LCCT. MAHB has also urged AirAsia to provide additional ground handling staff for arrival baggage as there are now six carousels at the arrival hall instead of two previously.

CHARGES AND INCENTIVES

MAHB wishes to clarify that the level of aeronautical charges are approved by the Government authorities. Charges paid by airlines at Malaysia's airports are already low and discounted against those charged by neighbouring competing airports. This is acknowledged by the aviation industry. This provides a low cost operating opportunity for home-based airlines as well as foreign airlines operating to Malaysia. Any increases or decreases in these charges are within the purview of the Government authorities and MAHB fully respects this. It needs to be emphasised that the landing and parking charges in Malaysia have not been increased for the last 27 years. Therefore, the issue of high aeronautical charges does not arise.

Some airports do provide discounts on those charges as incentives to airlines. MAHB already has an incentive programme for foreign airlines in place to encourage them to operate to Malaysia. This programme is applicable even to AirAsia Thailand and AirAsia Indonesia as they are foreign registered entities.

To facilitate AirAsia's move from Subang Airport to KLIA in 2002, AirAsia was given a waiver of all aeronautical charges (excluding Passenger Service Charge (PSC)) paid by AirAsia for their flights over and above what the airline was paying at Subang Airport. This waiver was for a period of five years (2002-2007) and was applicable not only at KLIA but also at all other airports in Malaysia that AirAsia may operate to. This waiver was for both domestic and international flights, which includes landing, parking, aerobridge and check-in counter charges. AirAsia also enjoyed special rental rates for office space at all airports.

AirAsia had requested for an extension of this programme. Although MAHB was unable to agree to this request, MAHB did indicate to AirAsia that a new incentive scheme was being formulated which will provide waivers for landing charges and incentives for growth. This scheme would also be extended to all other airlines. This scheme however, was dependent upon the outcome of the financial restructuring to be approved by the Government. With the approval announcement recently made on 23 December 2008, this scheme will be announced soon.

AirAsia had also requested for reduction in aeronautical charges at LCCT compared to the Main Terminal at KLIA. As aeronautical charges at both LCCT and the Main Terminal are regulated by the government authorities, this is a matter for the government authorities to decide. The government had already reduced the PSC at LCCT, in KLIA and in Kota Kinabalu by approximately half of that of the Main Terminal at these two airports.

NATIONAL AIRPORT MASTER PLAN (NAMP) STUDY

Malaysia Airports, with the support of Ministry of Transport and Ministry of Finance, initiated the development of the National Airport Master Plan study in July 2007. This study is to set the direction for the future development of airports and aviation infrastructure in the country. The formulation of this master plan involved all relevant government agencies, MAHB, Malaysia Airlines, AirAsia as well as representatives of foreign airlines. This master plan can be used as a basis for the orderly construction and development of all airports including permanent LCCTs in Malaysia.

The study, which has just recently been completed, took into account the development of low fare travel in Malaysia. The study, after considering several locations, has identified a location of the permanent LCCT at KLIA. The new LCCT location was selected as it would provide excellent connectivity for both landside and airside transfers for passengers as well as baggage.

The existing ERL would be extended for an additional 1.5 kilometres to connect the new LCCT to the existing Main Terminal. The LCCT would be built via a multi-modular design, with each module being able to handle 15 million passengers. The first phase of the permanent LCCT's development would encompass two modules and a parking apron capable of accommodating at least 60 aircrafts of various sizes and configurations. The design of the airport terminal will focus on passenger comfort as well as operational efficiency for the LCC.

The new terminal would be seamlessly integrated into KLIA's current infrastructure via ERL immediately and via AeroTrain when the second satellite building is constructed. Pending Government's approval, the first phase of this project could be ready by the end of 2011 and could be built at reasonable cost due to the availability of existing infrastructure.

When the need arises, in line with KLIA's Masterplan, a third runway can be built parallel to the second runway as aircraft movements and passenger traffic increases. This would offer efficient and quick turnaround for LCCs as there would then be two runways that would be of equal distance from the new permanent LCCT and its Parking apron.

Thanks to the Government's approved restructuring plan, MAHB is now in a position to partake the project with its own funds. Self-funding from its own cash reserves is not new to MAHB. Over the last 15 years, MAHB has spent over RM1 billion from its own cash reserves for the building and upgrading of airports such as KLIA for A380 readiness, development of apron and a cargo complex in Penang, and the development of new terminal buildings in Alor Setar, Langkawi, and Kota Bharu just to name a few.

As we have successfully done in the past, MAHB continues to cross-subsidise several loss-making domestic airports and rural services airports.

This proposal for the new LCCT to be completed in three years' time will provide excellent connectivity with construction at reasonable cost and can be self-funded by MAHB. The synergy between the legacy carriers and LCCs under one roof would pave the concept of a "new generation" airport hub in the region.

-----------------------------------------------------------------------------------

Hmmm now I dunno who's right and who's wrong... but then one thing is for sure... the competition that AirAsia has brought up to MAHB is commendable... at least for once we give these inefficient GLCs a good whip at the back!

OshHisham

January 22nd, 2009, 01:37 PM

LKS says.....

What the public is inclined to accept is that the present LCCT is in a shambles, and is probably on a par with some domestic Indian airports.

but LKS forgot that Changi Budget terminal also like 'some domestic Indian airports'

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022981.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023071.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023471.jpg

or maybe Budget Terminal is better than LCCT...'on par with bangladeshi main airport' kot...:lol:

YeahWho

January 22nd, 2009, 07:21 PM

Perhaps Air Asia should focus on improving their service first before even talking about this project. Look at all the negative comments about them at Skytrax, they should be ashame of themselves. The average rating is below 5.

szehoong

January 23rd, 2009, 01:11 AM

LKS says.....

but LKS forgot that Changi Budget terminal also like 'some domestic Indian airports'

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022981.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023071.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023471.jpg

or maybe Budget Terminal is better than LCCT...'on par with bangladeshi main airport' kot...:lol:

^^ IMO, your 'selected' pictures are still nicer than what our LCCT had to offer. :yes: Just look at the lightings and the wall of the terminal. Perhaps you needed some pictures to compare?

Seriously, our LCCT is a shame to our country. I rather it is not seen as a main gateway to our country. Some of my foreign friends were much impressed and cited much differences between the MTB and the LCCT when I brought them to visit the MTB upon their request.

I could go on and on bout it.

Before I am labelled as 'a Singaporean sympathizer' once again, I would however ask everyone to check out more pictures of Changi's Budget Terminal by my good friend Stan which Osh had the courtesy of selecting some of the 'not-so-nice ones' in his bid to attack 'anything Singapore' again.

Their budget terminal are seemlessly connected to their other terminals and they certainly do not look as 'warehouse' as our LCCT.

Let us compare again:

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6619sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6616sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6617sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6627sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6629sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6633sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6628sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6646sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6651sm.jpg

Now let's not forget that I took the pictures is when the terminal first opened so it is in its most pristine condition :yes:

And now take a look at some proper Singapore's Budget Terminal:

http://farm1.static.flickr.com/100/296425108_a312867c33_b.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022721.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022881.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022991.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC023011.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023401.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023491.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023641.jpg

^^ Just compare the carpark already can lah...... :D

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC023001.jpg

Lastresorter

January 23rd, 2009, 04:19 AM

^^ As a frequent traveller between Singapore-KL I must agree with you, Sze! They key here is MAINTENANCE. Singapore's budget terminal may not be as big as KL's LCCT but they are indeed very well-maintained and it still looks spanking new after years of operation. But ours is like a big pasar.

rizalhakim

January 23rd, 2009, 04:28 AM

Charges fixed by the govt: MAHB
Published: 2009/01/23

MALAYSIA Airports Holdings Bhd (MAHB) (5014) said aeronautical charges imposed on airlines using its airports in the country are not determined by the cost of building the terminal or airport.

Rather, they are determined and approved by the government and applied on a standard basis across all 39 airports it manages and operates.

Aeronautical charges include parking, landing, aerobridge and check-in counters.

"For example, when the KL International Airport (KLIA) in Sepang was built and the airlines moved from Subang, aeronautical charges at KLIA were not increased," it said in a statement dated January 20 this year posted on its website.
"Similarly, the case for Langkawi, Kota Baru, Alor Star, Bintulu, Tawau and Limbang airports. This will therefore also not be the case for newly upgraded airports in Kuala Terengganu, Malacca, Labuan, Kuching and Kota Kinabalu," it said.

It was indirectly countering remarks made by AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes in a January 12 2009 interview with NST, who said that "how costly the building of an airport is will result in how expensive the airport charge is".

MAHB added that its airport charges to airlines are already low and discounted against those charged by neighbouring competing airports.

"These charges are intentionally kept low to provide low-cost operations for airlines operating in and to Malaysia. Therefore, the issue of high aeronautical charges applicable to airlines does not arise."

MAHB reiterated that its airport charges constitute only a small proportion of airlines' total costs.

Citing AirAsia, it said the charges constitute only 2.5 per cent of the budget airline's annual costs.

"When incentives are given, this percentage is further reduced," it added.

In the same interview, Fernandes had also mentioned that there was no connectivity between the current low-cost carrier terminal (LCCT) in Sepang and KLIA that was worth getting excited about.

To this, MAHB said that AirAsia had requested not to have transfer facilities at the current LCCT during its design stages.

"In order to provide connectivity between LCCT and the main terminal, we had offered to provide airside bussing services for passengers, if AirAsia as the ground-handling agent could provide baggage transfers. Transfers via KLIA's airside would then take less than 10 minutes," said MAHB.

"(However,) AirAsia was unable to accommodate this proposal," it added.

Only recently AirAsia changed its business model toallow for transfer of passengers, including interlining of baggage between AirAsia and AirAsia X flights.

MAHB said in the expansion works being carried out at the current LCCT, which will be completed in March 2009, facilities are being incorporated to facilitate such transfer of baggage.

On the delay in expansion of the current LCCT, MAHB said it was partly due to AirAsia requesting that it be expanded onto the existing Pos Malaysia and KLAS premises.

"We had advised that this was not a good idea, as it would not provide room for further growth and would instead create congestion in the operational areas. This took some months to sort out.

"The authorities concurred that a new permanent LCCT should be built to cater for future growth. In the meantime, it was decided that MAHB proceed with expansion plans for the current LCCT to address immediate requirements," said MAHB.

patchay

January 23rd, 2009, 04:34 AM

WOW Singapore's much more modern and IKEA-ish lah!!!!

MALAYSIAN

January 23rd, 2009, 05:31 AM

that's y i said MAHB authorities is no brain, Singapore's budget terminal is more more modern and nice than our lcct, now they give a lot of reasons of the build of labu lcct becoz they scare they will loss a lot a lot of money :lol:

9MMRD

January 23rd, 2009, 10:24 AM

: No decision on Labu LCCT yet
Jan 23, 09 3:57pm

Deputy Prime Minister Najib Abdul Razak today threw a twist to the ongoing saga over the building of a new low-cost carrier terminal in Labu, Negeri Sembilan.

He said that the government has yet to decide on a new airport in Labu, located less than 10-kilometers away from the KL International Airport's (KLIA) and to be exclusively used by budget carrier AirAsia.

"We are looking at it but have yet to make any decision. I cannot pre-empt the decision by making an announcement," he said.

His announcement today was in contrast to a disclosure by Transport Minister Ong Tee Keat on Dec 21 that the government has approved for the RM1.6 billion airport.

Ong had said then that the new airport - to be called KLIA East @ Labu - would be jointly built by AirAsia and conglomerate Sime Darby on a 2,800 hectare site in Labu under a private finance initiative.

Since then however there had been a public outcry over the necessity of four airports serving Kuala Lumpur with many critics saying AirAsia should just make use of the present LCCT in Sepang as it will soon be expanded and incorporated with the KLIA, with possibility of a new runway added.

Najib to meet AirAsia CEO

In an exclusive interview with Malaysiakini, AirAsia chief executive office Tony Fernandes said that the new airport was necessary for the survival of his budget carrier.

The AirAsia boss will also be meeting with Najib next Friday to press his case for the new airport.

And judging by Najib's announcement today, Fernandes must be at his best in putting forward his case before the incoming premier.

Talking to reporters this morning, Najib said that the government was studying the Labu LCCT proposal to see "if we can go ahead or we need to make a different arrangement".

If the government gives the green light for the project, the new LCCT is expected to be ready by March 2011.

rizalhakim

January 23rd, 2009, 12:03 PM

Najib: No decision yet on Labu LCCT plan
Published: 2009/01/23

THE government has yet to decide on low-cost carrier AirAsia’s proposal to shift KL International Airport’s (KLIA) low-cost carrier terminal (LCCT) to Labu in Negeri Sembilan, Deputy Prime Minister Datuk Seri Najib Tun Razak said today.

“We are looking at it but have yet to make any decision. I cannot pre-empt the decision by making an announcement,” he said.

He was speaking to reporters after witnessing the handing over of the Bombardier CL415 amphibious aircraft to the Malaysian Maritime Enforcement Agency at the Sultan Abdul Aziz Shah Airport in Subang today.

Najib said the government was studying the Labu LCCT proposal to see “if we can go ahead or we need to make a different arrangement.”

To be called KLIA East, the proposed low-cost carrier terminal is expected to sustain AirAsia’s exponential growth as opposed to the LCCT at the KLIA from where it is operating now. - Bernama

rizalhakim

January 23rd, 2009, 12:11 PM

Another look at Labu LCCT
by Gan Yen Kuan
Email us your feedback at fd@bizedge.com

KUALA LUMPUR: The cabinet in its meeting on Wednesday decided to study again the plan by AirAsia Bhd and Sime Darby Bhd to build a low-cost carrier terminal (LCCT) in Labu, Negri Sembilan, sources said.

They said the cabinet had asked AirAsia to make a presentation to the Ministry of Finance and Economic Planning Unit next Friday on the proposed KLIA East@Labu, with the view that a project of similar scale and specifications can be carried out within the Kuala Lumpur International Airport (KLIA) grounds in Sepang.

“The Cabinet is leaning towards the airport now being constructed within KLIA,” one of the sources said. It is learnt that if the airport is to be built within KLIA, the cost can be kept to RM1.3 billion, lower than the estimated RM1.6 billion for the Labu LCCT.

It is understood that the government would ask Malaysia Airports Holdings Bhd (MAHB) and AirAsia — the two parties racing to build their own LCCTs — to “work together” towards a win-win solution.

When contacted, AirAsia group chief executive officer Datuk Seri Tony Fernandes told The Edge Financial Daily that as AirAsia understands it, the status of the KLIA East project is “approved”.

On Jan 5, the government gave Sime Darby the green light to proceed with the Labu LCCT project, which has been on AirAsia’s drawing board for the past one year.

Since the announcement, there has been mixed response from the public on the need for a new LCCT.

The proposal invited criticisms from, among others, former prime minister Tun Dr Mahathir Mohamad, who sarcastically condemned the Labu LCCT in his blog post dated Jan 12, although he later toned down his criticisms in a post dated Jan 17, suggesting that AirAsia’s needs can be catered for in the huge space at KLIA.

Advocates of KLIA East are concerned that MAHB would not be able to complete its proposed new LCCT adjacent to KLIA in time to cater for AirAsia’s exponential growth of both passengers and fleet.

Fernandes had said AirAsia would “go bust” in two years’ time if it does not have a new terminal. The carrier is looking at a new terminal by March 2011. Fernandes also raised the question of cost in his justification for KLIA East as he felt a LCCT built by MAHB may be expensive and may not fit into price-sensitive AirAsia’s operations.

Meanwhile, opponents argue that the country already has KLIA, which was built at a cost of RM10 billion, but is still grossly under-utilised, and that KLIA has enough space for expansion to cater for more passengers.

They deem the Labu LCCT a wasteful project given that new runways, control tower and fuel tank have to be built when these already exist in KLIA. They also questioned building a terminal exclusively for AirAsia when the airline and other no-frill carriers in the region can operate out of KLIA.

Despite AirAsia’s assurance that the Labu LCCT would be entirely a private initiative, sceptics worry that taxpayers’ money would eventually be spent on road and rail extensions to and from the terminal, as well as setting up new customs and immigration operations.

nazrey

January 23rd, 2009, 02:18 PM

Sime benefits anywhere the LCCT is located
NST Online » NewsBreak
2009/01/23

KUALA LUMPUR, Fri: Sime Darby Bhd still benefits whether the permanent low-cost carrier terminal (LCCT) is built at the Kuala Lumpur International Airport (KLIA) in Sepang or in Labu, Negeri Sembilan, president and group chief executive officer Datuk Seri Ahmad Zubir Murshid said today.

“Both locations are still under the Sime Darby Vision Valley,” he told a media briefing.

Ahmad Zubir was commenting on the government’s decision to review AirAsia’s proposal to shift LCCT at KLIA to Labu.

Deputy Prime Minister Datuk Seri Najib Tun Razak said today the government has yet to decide on the low-cost carrier’s proposal.

The new LCCT, estimated to cost RM1.6 billion on a 2,800-hectare site, will be built under the Private Financing Initiative by conglomerate Sime Darby and AirAsia.

daeng_jal

January 23rd, 2009, 08:16 PM

^^ IMO, your 'selected' pictures are still nicer than what our LCCT had to offer. :yes: Just look at the lightings and the wall of the terminal. Perhaps you needed some pictures to compare?

Seriously, our LCCT is a shame to our country. I rather it is not seen as a main gateway to our country. Some of my foreign friends were much impressed and cited much differences between the MTB and the LCCT when I brought them to visit the MTB upon their request.

I could go on and on bout it.

Before I am labelled as 'a Singaporean sympathizer' once again, I would however ask everyone to check out more pictures of Changi's Budget Terminal by my good friend Stan which Osh had the courtesy of selecting some of the 'not-so-nice ones' in his bid to attack 'anything Singapore' again.

Their budget terminal are seemlessly connected to their other terminals and they certainly do not look as 'warehouse' as our LCCT.

Let us compare again:

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6619sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6616sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6617sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6627sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6629sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6633sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6628sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6646sm.jpg

http://i21.photobucket.com/albums/b283/szehoong/KLIA/LCCT%20KLIA%20-%20April%202006/IMG_6651sm.jpg

Now let's not forget that I took the pictures is when the terminal first opened so it is in its most pristine condition :yes:

And now take a look at some proper Singapore's Budget Terminal:

http://farm1.static.flickr.com/100/296425108_a312867c33_b.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022721.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022881.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC022991.jpg

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC023011.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023401.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023491.jpg

http://i38.photobucket.com/albums/e126/ylstan02/Budget%20Terminal/DSC023641.jpg

^^ Just compare the carpark already can lah...... :D

http://i26.photobucket.com/albums/c121/ylstan01/Budget%20Terminal/DSC023001.jpg

come on sze, you are comparing a proper,permenent,not fully utilized,more expensive,more time spend on construction with a higher airport fee with a last minutes decicion,cargo terminal turn passanger terminal,temporary,overutilized,cheaper,faster to construct,cheaper airport fees,not to mention AK special discount and Tony huge debt to MAHB............

its like comparing old MACRO hypermarket facilities with Ikea's.

szehoong

January 23rd, 2009, 11:20 PM

come on sze, you are comparing a proper,permenent,not fully utilized,more expensive,more time spend on construction with a higher airport fee with a last minutes decicion,cargo terminal turn passanger terminal,temporary,overutilized,cheaper,faster to construct,cheaper airport fees,not to mention AK special discount and Tony huge debt to MAHB............

its like comparing old MACRO hypermarket facilities with Ikea's.

If you can't comprehend my post then please do not try to be smart. I am comparing because Osh is the initiator and I am proving him wrong. You are right about me not comparing apple with apple. Singapore's terminal is a more proper and permanent terminal if compared with our temporary, faster to contruct and last-minute-decision-kinda-terminal (your own words). This shows how 'tidak apa' our govt is when compared to Singapore's much well-planned airport. Did you also know that they are the first to moot the idea of a budet terminal? (yea....wayyyyy before MAHB and yes.......we are the copycat).

Seriously, it is grossly unfair to compare the utilization of both airports. Airports are not supposed to be overutilized. They are supposed to be able to handle more than the number of passengers they got. Is this another blunder?

Changi have a much higher fee compared to KLIA because they have some of the best facilities and connections in this region. People are willing to pay.......despite the fact that they are one of the most expensive in the region, they also handled one of the most passengers. KLIA's still-low-fees is to attract airlines to fly to it and they are still offering the same rate after 10 years.

I've been closely following on the LCCT and Sg's Budget Terminal progress since their inception and I do know things in-depth.

Again I would like to clarify that I am not unpatriotic or what but the more I know about the more developed countries, the more I want Malaysia or Malaysians to emulate the best. Sometimes people can be very proud and degil. So is it my fault that Malaysia constructed an old Makro-styled terminal while Singapore did an Ikea-like terminal?

patchay

January 24th, 2009, 02:24 AM

nazrey

January 24th, 2009, 05:11 AM

AirAsia gets enquiries on KLIA-East from investors
Published: 2009/01/24

AIRASIA Bhd (5099) has received numerous enquiries from domestic and international investors expressing interest to participate in the new low-cost carrier terminal in Labu, Negeri Sembilan.

KLIA-East, to be built on a 2,800 hectares, estimated to cost RM1.6 billion, is a private fund initiative, AirAsia said in a statement yesterday.

AirAsia said since the Cabinet’s approval of the Central Malaysian Vision Valley project, of which the KLIA-East LCCT is a vital component, AirAsia and Sime Darby have been in negotiations to finalise the details.

“We look forward to presenting the Deputy Prime Minister Datuk Seri Najib Tun Razak a detailed briefing on KLIA-East and the advanced plans we have developed for making the Kuala Lumpur the regional hub for low-cost carriers,” the company said.
AirAsia also appreciated Najib’s willingness to explore all options in helping to overcome the appalling conditions LCCT passengers face daily at the crowded Sepang LCCT. — Bernama

nazrey

January 24th, 2009, 05:13 AM

Sime gains whether LCCT is at KLIA or Labu: Chief
Published: 2009/01/24

Both locations are still under the Sime Darby Vision Valley, says its group chief executive officer

SIME Darby Bhd (4197) still benefit whether the permanent low-cost carrier terminal (LCCT) is built at the Kuala Lumpur International Airport (KLIA) in Sepang or in Labu, Negeri Sembilan, president and group chief executive officer Datuk Seri Ahmad Zubir Murshid said yesterday.

“Both locations are still under the Sime Darby Vision Valley,” he told a media briefing.

Ahmad Zubir was commenting on the government’s decision to review AirAsia’s proposal to shift LCCT at KLIA to Labu.

Deputy Prime Minister Datuk Seri Najib Tun Razak said on Thursday the government has yet to decide on the low-cost carrier’s proposal.

The new LCCT, estimated to cost RM1.6 billion on a 2,800-hectare site, will be built under the Private Financing Initiative by conglomerate Sime Darby and AirAsia.

Asked whether Sime Darby would continue its plan to acquire stakes in the National Heart Institute (IJN), Ahmad Zubir said the conglomerate would not pursue its plan.

“We made a statement that we are not interested in IJN anymore. As far as we are concerned, IJN is a closed case, but as far as healthcare is concerned, it is an open case. If we can’t have the IJN, we will build our own heart centre as simple as that,” he said.

On the Northern Corridor Economy Region (NCER), Ahmad Zubir said Sime Darby’s role in the NCER is that it is the master planner.

“As the master planner, we plan the NCER and somebody will implement it. The Northern Corridor Implementation Authority is the implementing body for NCER,” he added. — Bernama

erwinkarim

January 24th, 2009, 05:21 AM

Changi - higher fees yet all airlines berebut-rebut to go there

KLIA - lower fees but only small airlines from neighbouring countries want to go there

something must be damm wrong with MAHB and KLIA???

^^ having an airline alliance is a factor. a reason why no american airlines are stopping in KUL when their have feeder traffic from Thai air and Singapore Airlines.

MAS is begging to be in an alliance but so far all quite. maybe members are reluctant to add another SEA airline in the mix. hopefully Qantas-MAS "merger" goes thru. at least it will divert traffic from singapore (that's 1million+ passenger a year) to KLIA for connections.

AirAsia just "we don't need those stinky alliances. we're the hub... f*ck everybody else."

airport design is not a major factor why we don't get as much people as bangkok and Singapore. airline alliance, which is why they become the SEA hubs are the real reason why.

case in point: Port of Tanjung Pelepas traffic increase greatly in the first few years cause maersk and evergreen moved from singapore to PTP. if those big boys doesn't move, PTP will be underutilized as well.

MALAYSIAN

January 24th, 2009, 06:46 AM

becoz KL is not a financial city if compared with Singapore, the international airlines will be more prefer to fly to Singapore than KL :bash:

patchay

January 24th, 2009, 08:47 AM

patchay

January 24th, 2009, 09:15 AM

^^ having an airline alliance is a factor. a reason why no american airlines are stopping in KUL when their have feeder traffic from Thai air and Singapore Airlines.

I want to ask is Emirates ad Etihad part of any global alliance???? Maybe MAS should start a new global alliance wth these airlines lah!!!

erwinkarim

January 24th, 2009, 09:50 AM

Here's another reason of connectivity and hub:

From Brisbane I want to go to:

KL: Malaysia Airlines (transit from Sydney to KL always got delay), AirAsiaX (via Coolangatta Gold Coast, susah if no car)
Singapore: Singapore Airlines, Qantas, Etihad, Emirates Airline (wow got 4 superb airline choices!!!)

(can't imagine even Etihad flies direct Brisbane - Sg)

From Melbourne I want to go to:

KL: Malaysia Airlines, AirAsiaX
Singapore: Singapore Airlines, Qantas, Emirates Airline, Jetstar Airways Australia (Wow got another 4 choices)

Now in wonder those Aussies always stop at Sg lah. But I wonder why those Arab airlines not using KLIA as hub for Kangaroo routes?

So that's why KLIA's "future usefulness" is VERY highly dependant on the growth of AirAsia/AirAsiaX. If they moved out to Labu, then byebye KLIA.

jetstar is a subsidairy of qantas. etihad has code shares w/ jetstar.
qantas and singapore airlines are members of the same alliance. most of these passengers goes to singapore to changes flights cause all other alliance member "lepak" there.

etihad flies singapore-brisbane as part of their kangaroo route from abu-dhabi.

airports will always dependant of the airline growth. if singapore airlines goes solo (no alliance, no codeshare), do u still think changi will still be the hub?

becoz KL is not a financial city if compared with Singapore, the international airlines will be more prefer to fly to Singapore than KL :bash:

following your argument, i guess bangkok is a more financial city than singapore cause they carry more passengers. make that atlanta is THE financial city of the world cause it handles the most passengers.

MALAYSIAN

January 24th, 2009, 10:04 AM

Khaw

January 24th, 2009, 10:18 AM

now i only compare KL and Singapore but not Bangkok and Atlanta, these two places have more more population than KL, in addition Bangkok is one of the most famous tourist destination in South East Asia :lol:

Bangkok - yes, larger than all mentioned...about 11M within urbanized area.
But not Atlanta, which has only 500,000 within its city limits, 5M at most within the metro area. This is less than KL (1.7M / 6.5M respectively). Atlanta is about on par with Singapore in terms of population.

Khaw

January 24th, 2009, 10:25 AM

Atlanta has such high traffic due to the hub-and-spoke setup at Hartsfield Int'l Airport by the recently merged Delta Airlines and Northwest Airlines (Delta is one of the largest in US but is in bankruptcy at present). ATL handles at least 80% domestic flights.

Khaw

January 24th, 2009, 10:52 AM

following your argument, i guess bangkok is a more financial city than singapore cause they carry more passengers. make that atlanta is THE financial city of the world cause it handles the most passengers.[/QUOTE]

KL has lots of potential. It's up to the right people or authority to make it happen. Being a financial center is not the only reason. A vacation destination is also another. Witness Las Vegas (pop. 1.1M city limits / 2.4M metro) with more than 80M visitors each year!!! Its airport, McCarran Int'l handles somewhere between 40 to 45M each year. Another factor in boosting traffic is the hub-and-spoke pattern which Atlanta, Chicago, Phoenix, Denver, etc. provides in the US. As you can see, other than Chicago, the others are not that much of a "financial or tourism" destination.

patchay

January 24th, 2009, 11:49 AM

aiyo guys... Atlanta is almost all domestic traffic lah

..... in the top 30 airport based on international traffic (KLIA is ranked 13th) Atlanta is no where there!!! >>> http://en.wikipedia.org/wiki/World%27s_busiest_airports_by_international_passenger_traffic

These are factors contributing to big boys Bangkok and Changi's hub:

1. Global airline alliance (Singapore, Bangkok)

2. Financial city (Singapore, HK)

3. Entrepot/Trade (Dubai, Singapore, HK, Shanghai)

4. Tourism and "Western popularity" (Bangkok, HK, Beijing)

5. Huge local population (Shanghai, Guangzhou, Jakarta in future)

6. Affluent population that loves to travel (Sydney - Aussies, Dubai - Arabs)

The reason why we lose out because KL doesn't top any of these categories. And we are not a developed country like SKorea and Japan. But because of intense marketing "Malaysia Truly Asia" etc, our KLIA still stands out to be a major contender for Asia's aviation hub. (i hate to say this but KLIA is becoming a hub for "third world" countries, no offence)

Khaw

January 24th, 2009, 12:25 PM

KL has lots of potential. It's up to the right people or authority to make it happen. Being a financial center is not the only reason. A vacation destination is also another. Witness Las Vegas (pop. 1.1M city limits / 2.4M metro) with more than 80M visitors each year!!! Its airport, McCarran Int'l handles somewhere between 40 to 45M each year. Another factor in boosting traffic is the hub-and-spoke pattern which Atlanta, Chicago, Phoenix, Denver, etc. provides in the US. As you can see, other than Chicago, the others are not that much of a "financial or tourism" destination.

the pop. statistics for Vegas should be 600K city, 2.1M metro. sorry about the confusion...the stats (1.1M / 2.4M) are for San Diego.:nuts: everything else is OK-lah...

Skyprince

January 24th, 2009, 01:20 PM

1. Global airline alliance (Singapore, Bangkok)

2. Financial city (Singapore, HK)

3. Entrepot/Trade (Dubai, Singapore, HK, Shanghai)

4. Tourism and "Western popularity" (Bangkok, HK, Beijing)

5. Huge local population (Shanghai, Guangzhou, Jakarta in future)

6. Affluent population that loves to travel (Sydney - Aussies, Dubai - Arabs)

.... hmm but I think the most important factor is : A strong, expanding, well-managed airline.

Emirates, Singapore, Cathay, Thai, and Etihad keep expanding with many new destinations launched every year, but MAS keeps downsizing. Those airlines use huge planes even on short regional routes like SIN-KUL, SIN-JKT, BKK-KUL, DXB-MCT, AUH-MCT, DXB-DOH etc- but MAS ? Even on lucrative routes like KL- Bali where Air Asia recently upraded to FIVE daily flights by A320, MAS is still flying with 2 daily 737's :down: Look at the capasity and type of aircraft used by MAS for its other Indonesia, Vietnam, Singapore and Thailand flights and compare to Air Asia's .

If those 6 criterias ( which KL, MAS, and Air Asia fare relatively weak ) are the main factor, then how cd Air Asia able to launch many new routes and destinations ( which even stunned TR and 3K ) from KL in 2008 ? Why MAS keeps downsizing but AK managed to expand at meteoric speed ? ( Yes, despite of MAS slowly changing its business model into a "low-cost" one while maintaining its 5 star service ) . If you look at presentation on KLIA East by Tony F , he projected 25-30 million passengers will fly into KL by Air Asia alone, on 2013. And Air Asia & KL do not match any of the top 6 criterias .

patchay

January 24th, 2009, 02:09 PM

well said as well...

So what can we do to cure MAS's illness quickly given such unfortunate business season? And I see more and more people are bashing MAS quality nowadays and I dont know how they won those awards. AirAsia is thriving due to its cheap cheap fares (perception wise). Enough said about MAS/AA in this thread.

Skyprince

January 24th, 2009, 02:22 PM

jani13

January 24th, 2009, 09:12 PM

hahaha

bobdikl

January 24th, 2009, 10:04 PM

I wonder why those Arab airlines not using KLIA as hub for Kangaroo routes?
[/b][/u]

i think because of malaysian government protectionist policies to discriminated the foreign airlines. Third destinations are not always welcomed in KLIA, so these foreign flights have to return to their home country. why would the goverment bother to let the Qantas to compete with MAS on the London-KL-Australia routes. Why would the goverment allow Qantas to sell me a London-KL ticket? there are so many flights between UK and Malaysia by MAS everyday, they think they can just eat all the cakes, instead of expanding it, very short sighted business strategy.

nazrey

January 25th, 2009, 04:35 AM

erwinkarim

January 25th, 2009, 06:36 AM

^^ remaking of MAS brand :banana:

Change the logo ( MAS's text logo is so horrible-looking, esp "MALAYSIA" , frankly speaking! :toilet: :toilet: ), change its business model- see how Air Asia is doing, install IFEs in all seats including 55 B737-800's that it ordered last year, use huge planes (!!!!) in all short-haul regional routes ( don't you feel "classy" to fly on 777's, A330's or 747's instead of small 737. It leaves a high impression on that carrier ! How do you feel honestly when you see MAS' humble 737 parked alongside Thai's, Cathay's, or Singapore's 777's in Changi, Suvarnabhumi etc. ? :down: To me it seems an "Inferior" brand and won't fly with it if possible ) , improve the quality of Enrich, make aggressive campaigns, ads, promotions abroad. Oh, how about establishing a low-cost subsidiary like Air Asia for its axed loss-making routes e.g Xian, Cairo, Zurich, Chengdu, Fukuoka, Nagoya, Ahmedabad, Vienna, etc. ? :banana:

Am not in the aviation world, but that's what I cd say. Plus now with widespread recession...... but Air Asia is doing well !! How is it.

how about an airasia A320 parked next to singapore airlines A380. do u feel inferior too? most people don't really care what plane they ride it, as long there's good value to purchasing the tickets. one way MAS to thrive w/ old planes is to give outstanding in-flight experience. oh wait, aren't they doing that already? so they have to do it better la...

best in-flight experience IMHO? virgin America flights. i took a night flight. it was from LAX to SFO. since it's a new aircraft, everything is clean. the seats are leather, so they just been wiped clean. between the seats, there are power points for laptop and network jacks for internet. each seats has touch-screen LCDs, i think about 8" size. they have satellite TVs with 50 channels so you won't miss your shows in the air. you can listen to on demand music. feeling rich? there's pay-per-view too and you can order drinks/food via the TV screen. since it's a night flight, they dimmed the lights, but it's not yellow. it's in hue of blue so you feel like in a night club and it's not too bright that you can't sleep but not too dim that you can't see where you going. all the crew talks so though you are their best friend forever.

how much for that? USD 99 one-way for 1.2 hours flight. quite expensive for us asian, but i think for the american's it's a no brainer. these kind of experience generates repeat customers. something i think both AirAsian and MAS can learn.

isn't firefly a "low-cost" subsidiary for MAS?

MALAYSIAN

January 25th, 2009, 07:27 AM

if government cancel the project, airasia CEO will unhappy may be will not make KL as its hub but others airport in the region :ohno:

Skyprince

January 25th, 2009, 07:30 AM

how about an airasia A320 parked next to singapore airlines A380. do u feel inferior too? most people don't really care what plane they ride it, as long there's good value to purchasing the tickets.

Air Asia should be compared with RyanAir or Easyjet which belong to the same category. MAS can only be compared with legacy carriers like SQ, TG, CX, KE, EK etc.

Nope, I think most people do care about aircraft type. Yup I think huge aircrafts is what makes an airline a "Superior brand " . SQ, EK, and CX do not use 737's in their fleet . Thai has some, and MH has many of them. And you see how the "prestige" differs between them ?

best in-flight experience IMHO? virgin America flights. i took a night flight. it was from LAX to SFO. since it's a new aircraft, everything is clean. the seats are leather, so they just been wiped clean. between the seats, there are power points for laptop and network jacks for internet. each seats has touch-screen LCDs, i think about 8" size. they have satellite TVs with 50 channels so you won't miss your shows in the air. you can listen to on demand music. feeling rich? there's pay-per-view too and you can order drinks/food via the TV screen. since it's a night flight, they dimmed the lights, but it's not yellow. it's in hue of blue so you feel like in a night club and it's not too bright that you can't sleep but not too dim that you can't see where you going. all the crew talks so though you are their best friend forever.

Do you know that on-board service ( except IFE ) on MAS is much better than Emirates ? But why Emirates is a far superior brand than Malaysia ?

Almost everybody looks Emirates as a classy superior airline but MAS ?

ANyway yes, Firefly is a low-cost subsidiary but it flies mainly to domestic and short regional destinations . WHy not a strong low-cost for long-haul flights, just like Air Asia X ?

Arkdriver

January 25th, 2009, 08:30 AM

SG is an island. HK is a small county. EK aka Arab bodoh have how large domestic market?? Obviously these airlines does not need small airplanes. Look at MAS, they have narrow bodied because they have large domestic market even if they compete with air asia.

Nothing wrong with having small planes. As long as it's profitable. What's up with all big planes? Have you ever compare Silk Air's A320 with Malaysia Airlines Boeing 777? I've never met with a person except you who refused to buy MH ticket because they know they would board a small plane instead of the big one.

When are you paying for a ticket to Bangkok for business occasions, you main aim is to get there safe, not to enjoy all the IFE and feeling so prestigious boarding a big plane. Boarding that big plane does not make your business profile increase.

When you book your flight to Penang or Kuching, on weekends mostly you'll get A330, i've never met anyone who refuse to travel on weekdays because they use 734...

Macam macamlah hang ni.

szehoong

January 25th, 2009, 09:27 AM

Air Asia should be compared with RyanAir or Easyjet which belong to the same category. MAS can only be compared with legacy carriers like SQ, TG, CX, KE, EK etc.

Nope, I think most people do care about aircraft type. Yup I think huge aircrafts is what makes an airline a "Superior brand " . SQ, EK, and CX do not use 737's in their fleet . Thai has some, and MH has many of them. And you see how the "prestige" differs between them ?

Seriously lah.......how many people actually care (or dare I say ....even know) what kind of plane are they on?

I dunno but I'll bet that sometimes even myself would get the planes wrong just by having a glance at em. :yes:

The bigger the planes doesn't translate to being more 'superior' as you've put it because what if there is an SG B744 park next to an MH B777? In this case which plane is better? The newer one or the huge old one?

BTW could ya tell the difference between a B744 and a B743? :D ....and try not to heat by looking up online to ans this.....just be honest. :yes:

Skyprince

January 25th, 2009, 10:11 AM

ah my sentence was incomplete.... What I actually meant was most Top "Superior" airline brands today especially SQ, EK, CX have a fleet made up of all Wide-bodied aircrafts. Of course I can't blame MAS for having 737 since it has to serve domestic lines, but even on many short regional lines to Indonesia, Vietnam, Cambodia, Thailand, and even Macau its still using 737. ( and look at what type of aircrafts SQ and TG use for the same lines )

How about switching my word "huge" into --> "brand new and wide-bodied category " planes ...I think this makes a good combination ? Why don't world-renowned , popular carriers like SIngapore , Emirates or Cathay keep small planes with less than 150 seats ? SQ can simply use small planes for KL, Jakarta, & Penang flights, CX can simply deploy some for Xiamen & Taipei while Emirates can use them for Muscat and Doha both are less than an hour from Dubai. But these Top-3 most talked-about carriers ( probably ) choose not to keep/ use small planes like 737 or AIrbus 310 . It must be for a reason , I think :P Secrets of Airline branding, probably ? :P

Answering your question. ermm not sure about 743. About 777 vs. 747, of course the brand new 777 instead of old 747. Both 777 and 747 belong to same category i.e. Wide-body. But say, there is a choice beween brand-new 737 vs. brand-new 777, or , old 737 vs old 777, with comparable level of service and interior, I'd simply pick 777 hands down :P

daeng_jal

January 25th, 2009, 10:32 AM

can s'one enlighen me on why is KUL being a hub that so much important? does it hold any macroeconomic value or just a blinded prestigious patriotic value bcoz other nation had more passanger trafic. all that what i can see is that changi is just a glorified rapidkl bus hub where people get gown to change aircraft to get to their final destination.and mostly not all passanger at changi or HKIA visited the city itself? if it so,than i would preffered KUL as the 25mil that pass it gate had malaysia as it final destination...it just weird that tax payers money are being use for airport expansion so that some foreigner can change his/her plane to other carrier.so can anyone explain it to me,please? why being a hub is so much important.

TWK90

January 25th, 2009, 10:57 AM

bobdikl

January 25th, 2009, 07:47 PM

apart from that, airport connection is part of the statistical criteria in most business, commerce, outsourcing.. feasibility reports. that's why so many regeional HQ offices are in SG and HK.

Khaw

January 27th, 2009, 02:52 AM

tbc

January 27th, 2009, 03:52 AM

if government cancel the project, airasia CEO will unhappy may be will not make KL as its hub but others airport in the region :ohno:

As in other airport outside of Malaysia ?
No, not likely they will be allowed to be dominant carrier at any foreign airports/hubs
Doubt very much too if any foreign country will be even half as accomodating (perhaps even pandering) to AirAsia's requirements as the Malaysian authorities thus far

OshHisham

January 27th, 2009, 07:02 AM

^^after all Najib is the one who make the decision after his meeting with MAS, AA and MAHB.

perhaps you should experience by yourself than...

MAS has the world's best cabin crews. no matter what others might say. well, just consider they are 'unlucky'

whatever people wanna say about MAS, nak mengutuk ke, nak sanjung arab/orang putih/singapore airliners ke, nak mencaci MAS ke, nak argue awards received by MAS ke....for me, MAS cabin crew is the best, even if we compare with AirAsia....

great english/malay language command, excellent skill of conversation, genuine smiles, gracious (i always got extra food :D)

had a wonderful trip to BKK, and thank you MAS. bashers will always be bashers....no matter what (sampai font 'MALAYSIA' pun nak kutuk. apa punya bahlol-bangang manusia :ohno: )

http://farm4.static.flickr.com/3337/3230839954_22a09a1935_o.jpg

OshHisham

January 27th, 2009, 07:25 AM

I've been closely following on the LCCT and Sg's Budget Terminal progress since their inception and I do know things in-depth.

"i've been closely following......" <------typical words of you btw :lol:

so, this is the things happen in LCCT recently (and always)

and if i'm not mistaken, many peoples here always complaining KLIA always 'empty', right?

nah...there you go. you get what you always wanted. a fully packed airport. :okay:

http://farm4.static.flickr.com/3127/3230875110_349b140584_o.jpg

http://farm4.static.flickr.com/3443/3230023333_af627ec1e1_o.jpg

http://farm4.static.flickr.com/3478/3230024779_6226fc137e_o.jpg

http://farm4.static.flickr.com/3353/3230875566_897d2fe930_o.jpg

http://farm4.static.flickr.com/3430/3230023791_7ee0ea6ce5_o.jpg

semua seat kat luar terminal building....kesian...
http://farm4.static.flickr.com/3336/3230874300_bfdc4acfe7_o.jpg

http://farm4.static.flickr.com/3389/3230023003_3a80f3bea9_o.jpg

sampai takder kerusi nak duduk, terpaksa duduk atas beg :lol:
http://farm4.static.flickr.com/3362/3230024553_c84115a9cf_o.jpg

seeing condition like this, no wonder Tony Fernandez pun hilang sabar. aku rasa dia pun malu tgk keadaan 'Home of AirAsia' macam ini punya teruk....

but, the position as HUB is not forever belong to the one who holding it rite now lah. so, nak kecoh2, kutuk2 lebih2 ni apasal...?

MALAYSIAN

January 27th, 2009, 09:04 AM

yalo kesian, so i support the project :banana:

TWK90

January 27th, 2009, 09:58 AM

Nobody deny the need of new LCCT, the only question is where it should be built?

Labu or inside KLIA?

Sheik

January 27th, 2009, 11:35 PM

Nobody deny the need of new LCCT, the only question is where it should be built?

Labu or inside KLIA?

It should be built within KLIA where one can connect easily and quickly to other airlines. If Malaysia airports can't build the new LCCT terminal on time, just let AirAsia build it, own it and run it. Similar to US airports where airlines own their own terminal buildings.

tbc

January 28th, 2009, 01:41 AM

That is how BKI's T2 was like whilst they were building the existing terminal few years back :) Anyone still recall our infamous 'plywood tunnel' ?
Except I guess you don't have threat of falling construction debris at KUL LCCT nowadays ?

johnsonooi

January 28th, 2009, 02:07 AM

johnsonooi

January 28th, 2009, 02:12 AM

ah my sentence was incomplete.... What I actually meant was most Top "Superior" airline brands today especially SQ, EK, CX have a fleet made up of all Wide-bodied aircrafts. Of course I can't blame MAS for having 737 since it has to serve domestic lines, but even on many short regional lines to Indonesia, Vietnam, Cambodia, Thailand, and even Macau its still using 737. ( and look at what type of aircrafts SQ and TG use for the same lines )

Correct me if I am wrong, but KL to Macao should be considered as short haul. Usually B737 or A330 is deployed on the short haul route. Why want to spent so much operating and maintenance costs on such a short route?

Qantas does use B737 for their international route. I dont see a problem using B737 as long as it is comfortable and profitable.

Skyprince, remember MAS is accountable to tax-payers, so their priority is profitable and excellent services, not just for the sake of Face and Pride.

"Malaysia" font in the MAS logo, i dont see any problem in it as it is now a legacy as MAS has established the brand since the separation of MSA.

If the pride and face is really matters to you, why dont you just sit first class?

johnsonooi

January 28th, 2009, 02:19 AM

For me, is Sepang and no to Labu.

Reasons, utilizing the current runways and facilities, create synergy and establish KLIA as a hub of SEA.

Why AirAsia so fed up?

Because it was not in the masterplan before the airport was designed, and the authorities cannot predict the exponential growth of AirAsia.

After spending much money for KLIA, I dont see a reason AirAsia should build a new terminal at Labu. And at this current economy crisis, where can this consortium get the money? bank? stock market?

rizalhakim

January 28th, 2009, 05:23 AM

KTMB: Privatisation not the only way to profit
By Kang Siew LiPublished: 2009/01/28

Keretapi Tanah Melayu Bhd, Malaysia's national railway company, does not need to be privatised to become profitable or to progress, says managing director Abd Radzak Abd Malek.

"A privatised institution is not necessarily better than a state-owned one. Take Queensland Rail (QR) for example. It continues to be profitable," he told Business Times in an interview.

QR, which was corporatised in 1995, is a government-owned operator of passenger and freight railway services in Queensland, Australia.

"As such, I don't agree with the comment that the only way we can progress is to privatise," said Abd Radzak.

"For me, as long as it (KTMB) serves the needs of people in the country, has a responsibility to society and is an effective public transport system, it can either be a corporatised government-owned corporation or privatised. These are purely methods," he added.

Former KTMB managing director Datuk Mohd Salleh Abdullah had in an April 2007 interview said that the privatisation of KTMB can succeed and make the railway profitable if the government liberalises the Malaysian rail industry, especially on tariffs and unprofitable routes.

Similar to the port and airport industries, KTMB has to seek approval from the government before it can make changes to its tariffs. This process can take years.

Meanwhile, Abd Radzak said he welcomes the entry of a second railway operator in the local market, even if this means breaking the long-term monopoly enjoyed by KTMB. Transport Minister Datuk Seri Ong Tee Keat had announced last December that his ministry was considering introducing a second railway operator.

"In the long run, when you have the infrastructure (double-tracking rail project) ready, you cannot stop another private operator from entering the market.

"For instance, if there are entrepreneurs who would like to operate freight or passenger train services, they can ride on our network. In return, we would collect toll fees from them. This idea is workable especially when the double-tracking project is completed," he said.

The double track between Rawang and Ipoh is now fully completed, while the Ipoh-Padang Besar and the Seremban-Gemas sectors will be completed in 2012.

The double-tracking is crucial to KTMB as it will increase the track capacity by eight to 10 times.

Currently, the capacity of a single-track railway line is between 25 trains and 28 trains per day per sector, while the central region sector (Seremban-Rawang and Sentul-Port Klang) and the sector between Rawang and Ipoh, both of which are double-tracked and electrified, have an average of 307 trains running daily.

"Upon completion of the double-tracking project, we would have a lot of capacity to accommodate more trains. And we, at KTMB, have our limitations too (in terms of equipment and resources).

"As such, we are open to the idea of liberalising the track access for usage of a third party operator, who will be paying us a fee to access our tracks.

"They would have their own wagons and locomotives, and would have to secure their own freight volume and passenger ridership," he said.

Still, this proposal needs government approval.

Abd Radzak said he currently chairs a task force, of which the special adviser to the Transport Minister is also a member, to look into this matter.

"This proposal remains in the preliminary stages. We are also looking at several other models around the world as part of the restructuring of KTMB," he added.

To a question, Abd Radzak said construction of the new track between KTMB's existing Labu train station and the new low-cost carrier terminal (LCCT) in Labu, Negri Sembilan, will be funded by the "private sector" but stopped short of saying whether it was AirAsia Bhd or Sime Darby Bhd.

Both AirAsia group chief executive officer Datuk Seri Tony Fernandes and Abdul Radzak had earlier confirmed having discussions on the rail link project.

"AirAsia can leverage on our low-cost transportation, while we can tap into AirAsia's passenger traffic that will pass through the new LCCT," said Abd Radzak.

The completion of the new LCCT will also coincide with the delivery of KTMB's five electric train sets (ETS) scheduled to arrive in 2010.

"Low-cost travellers can then take our shuttle train service from Ipoh to Kuala Lumpur and travel onwards to Labu," he added.

Plans are also afoot to extend the Ipoh-Kuala Lumpur line to Singapore upon completion of the double-tracking project, subject to government approval, thus attracting more travellers to fly through the new LCCT.

rizalhakim

January 28th, 2009, 05:56 AM

Najib confirms Cabinet re-evaluating Labu LCCT plans
23-01-2009: by Chua Sue-Ann

SUBANG JAYA: Deputy Prime Minister Datuk Seri Najib Razak has confirmed that the Cabinet is re-evaluating its approval to AirAsia Bhd and Sime Darby Bhd to build a low-cost carrier terminal (LCCT) in Labu, Negri Sembilan.

Najib, who is also Finance Minister, said no formal decision had been made as the Cabinet was still evaluating the proposals, declining to say more so as to not “pre-empt the decision”.

“The Cabinet is studying the matter from all angles to verify whether we should go ahead or could there be another different arrangement,” Najib said after an aircraft receiving ceremony here.

The Edge Financial Daily on Jan 23 reported that the government had requested AirAsia to make a presentation on the proposed KLIA East@Labu, with the view that a project of similar scale and specifications could be located within the Kuala Lumpur International Airport (KLIA) grounds.

Sources said the Cabinet was now keen for the new LCCT to be constructed within the KLIA in Sepang and would ask Malaysia Airports Holdings Bhd (MAHB) and AirAsia, which both have plans to build LCCTs, to “work together” to reach an amicable decision.

The Cabinet had on January 5 given Sime Darby and AirAsia approval to proceed with the proposed Labu LCCT project, which prompted mixed responses from the public on the need for a new budget airline terminal.

Critics of KLIA East argued against the need for a new LCCT given that the existing LCCT is undergoing expansion works while the KLIA similarly has enough space to cater to more passengers.

Meanwhile, proponents of the project had voiced concerns that MAHB would not be able to complete its proposed new LCCT adjacent to KLIA in time to cater to irAsia’s projected passenger and fleet growth.

An untenable situation has arisen given that MAHB is still adamant in wanting to go ahead with its own proposed permanent LCCT at KLIA.

If the RM1.6 billion Labu LCCT proceeds as planned, it is expected to be completed in March 2011 with a capacity of handling 30 million passengers per year which could be further increased to 50 million passengers.

Najib: Govt still looking into Labu airport plan

PETALING JAYA: The Government is only “studying and looking into” the building of the LCCTeast@Labu airport, Deputy Prime Minister Datuk Seri Najib Tun Razak said.

He clarified yesterday that the Cabinet had yet to make a formal decision on the matter.

“We are studying the matter from all angles, to verify whether we should go ahead or if there could be a different arrangement,” he told reporters at the Sultan Abdul Aziz Shah airport yesterday after witnessing the handover of the Amphibious Bombardier CL415 aircraft to the Malaysian Maritime Enforcement Agency (MMEA).

Maritime wings: Najib with the amphibious Bombardier CL415 after witnessing the handing-over at the Sultan Abdul Aziz Shah airport Friday.

It is the first such aircraft to be used in Southeast Asia.

It was earlier reported that the Cabinet had approved the privately financed project on a 2,800ha site in Labu.

The project was to be fully financed by government-linked conglomerate Sime Darby and its partners, which include budget airline AirAsia Bhd and Malaysia Airports Bhd.

However, the plan has drawn flak from many quarters including Khazanah Nasional which questioned the need to have two airports within 10km of each other.

If the Government gives its approval for the project, the new LCCT is expected to be ready by March 2011.

At a separate function earlier, Najib said that details of liberalisation in the services sector would be out soon.

“I am having a meeting with the services sector. It’s been scheduled fairly soon. After that I’ll come out with a full statement on what the Government can agree to, but the principle is that there will be liberalisation of the services sector,” he said after speaking at the Malaysia Industrialised Building System (IBS) Exhibition.

The deputy prime minister said the Government would take cognisance of what other countries were doing so that the country would remain competitive.

Najib described the construction industry as a very important sector as it had a multiplier effect on the overall national economy.

According to the Construction Industry Development Board (CIDB) Malaysia, as of Jan 8, there were about 303 government projects nationwide worth RM9.2bil to be implemented using the IBS.

erwinkarim

January 28th, 2009, 05:57 AM

Correct me if I am wrong, but KL to Macao should be considered as short haul. Usually B737 or A330 is deployed on the short haul route. Why want to spent so much operating and maintenance costs on such a short route?

Qantas does use B737 for their international route. I dont see a problem using B737 as long as it is comfortable and profitable.

it all depends on profitability on the route. before liberalization, KUL-SG tickets was RM800 return. for a half hour flight time. and around 11-12 times a day. MAS operates a A330, SG operates B777. naik flight dpt air je. w/ liberalization, i bet in the future KUL-SG will only be on A320 or B737. SG may think it's more profitable to "lease" services from MAS than to buy a B737 for the KUL-SG route. if HSR goes as planned, the air route will be obliterated.

same rational goes for the US. before markets were de-regulated, LA-NY flights were only 747. now it'd hardly make sense to fly a 747 coast-to-coast US because of intense competition.

in the end, i bet none of the passenger cares what plane it rides, as long it goes to the destination fast and safe.

rizalhakim

January 28th, 2009, 07:54 AM

'Kami cuma jual tanah'

Oleh DALIZA ARIFFIN
daliza.ariffin@utusan.com.my

AHMAD ZUBIR MURSHID

--------------------------------------------------------------------------------

KUALA LUMPUR 23 Jan. - Sime Darby Bhd. (Sime Darby) berkata penglibatannya dalam projek pembinaan Lapangan terbang Terminal Syarikat Penerbangan Tambang Murah (LCCT), di Labu, Negeri Sembilan tidak lebih sebagai pemilik tanah yang mendapat tawaran harga yang menarik.

Presiden dan Ketua Pegawai Eksekutif Kumpulan Sime Darby Bhd., Datuk Seri Ahmad Zubir Murshid berkata, tawaran AirAsia Bhd. (AirAsia) untuk membeli tanahnya seluas 1,200 hektar di Negeri Sembilan Valley City (NSVC) tidak ubah seperti 'pucuk dicita ulam mendatang.'

Ahmad Zubir berkata: ''Kami hanya bersetuju (melaksanakan projek) atas dasar perniagaan sahaja, sekiranya ada syarikat yang hendak membeli tanah kami dan meningkatkan nilai pada aset itu, kami amat berbesar hati.

''Tidak kira siapa sahaja yang membuat tawaran membeli termasuklah Thai Airways sekiranya bercadang 2,000 hektar tanah dengan harga premium untuk dijadikan sebagai pusat penerbangan mereka, maka kami bersetuju tetapi dengan syarat ia perlu mendapat kelulusan daripada pihak berkuasa.

''Jika kelulusan itu diterima, maka kami akan menjualnya, tetapi sekiranya ada syarikat yang bercadang membeli tanah di luar kawasan kami, kami tidak boleh berbuat apa-apa,'' katanya pada sidang akhbar ketika mengumumkan Lembah Wawasan Sime Darby (SDVV) di sini hari ini.

Beliau berkata demikian sebagai mengulas penglibatan Sime Darby dalam projek KLIA-East setelah 'dilamar' oleh AirAsia setahun lalu yang berminat membeli sebidang tanah di NSVC untuk dimajukan sebagai sebuah lapangan terbang persendirian.

Ahmad Zubir berkata, bagi pihak syarikat, projek itu (pembinaan terminal) berpotensi kerana letaknya dalam koridor pembangunan yang sedang dibangunkan di negeri tersebut dengan nilai jualan lebih RM2 hingga RM4 sekaki persegi.

Beliau menjelaskan Sime Darby pada awalnya menawarkan sebuah kawasan di Sepang, Selangor berdekatan Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) tetapi cadangan itu dibatalkan kerana gagal mendapat kelulusan Jabatan Penerbangan Awam (DCA) dengan alasan kedudukan dalam laluan trafik pesawat ke KLIA.

''Kami bukannya arif dalam bidang penerbangan kerana kami hanya mahir dalam bidang perladangan, sebab itu pada awalnya kami bersetuju dengan projek itu kerana kedudukannya berdekatan KLIA.''

Ahmad Zubir berkata, cadangan kedua AirAsia untuk projek LCCT diterimanya selepas satu kajian lain dilakukan oleh syarikat berkenaan dengan memilih Labu, Negeri Sembilan iaitu kawasan yang terletak dalam NSVC sebagai lokasi yang baru.

''Sebagai pemaju NSVC, kami telah membuat permohonan daripada kerajaan dan secara prinsipal kami telah menerima lampu hijau tetapi kami telah menyatakan pendirian kami bahawa Sime Darby tidak akan terbabit dalam sebarang pemilikan atau bertindak sebagai operator dalam projek LCCT yang baru kerana ia bukan perniagaan teras kami,'' tegasnya.

Ditanya mengenai pendirian syarikat terhadap keputusan kerajaan untuk mengkaji semula cadangan pembinaan projek KLIA-East, beliau berkata, sama ada di Labu atau KLIA, ia akan tetap memberi kelebihan kepada syarikat kerana ia sebahagian daripada SDVV.

Beliau juga menegaskan, sehingga kini tiada sebarang perjanjian yang dimeterai antara Sime Darby dengan AirAsia.

Sementara itu, AirAsia dalam satu kenyataannya di sini berkata, pihaknya menerima banyak pertanyaan dari pelabur tempatan dan antarabangsa yang berminat menyertai pembinaan LCCT baru itu.

AirAsia berkata, sejak menerima kelulusan Kabinet bagi projek Lembah Wawasan Malaysia Tengah, yang mana KLIA-East LCCT merupakan komponen penting, AirAsia dan Sime Darby mengadakan perundingan untuk memperhalusi butiran terperincinya.

"Kami tidak sabar-sabar untuk menyampaikan kepada Timbalan Perdana Menteri Datuk Seri Najib Tun Razak pada taklimat terperinci mengenai KLIA-East dan rancangan lanjutan yang kami telah bangunkan bagi menjadikan Kuala Lumpur hab serantau bagi syarikat penerbangan tambang murah," kata syarikat itu.

AirAsia juga menghargai kesanggupan Najib mengkaji opsyen untuk mengatasi keadaan penumpang LCCT yang menyedihkan yang dihadapi setiap hari di LCCT Sepang yang sesak itu

rizalhakim

January 28th, 2009, 09:36 AM

daeng_jal

January 28th, 2009, 11:17 AM

MALAYSIAN

January 28th, 2009, 11:43 AM

i'll think lets have the LCCT in labu,with the NSVV the whole area will turn into an aeropolis that after 10years KLIA fail to achieve,evenmore the parking,food ERL tickets are all to expensive...MAHB earlier state the north KLIA is price at 3bilion(tax payers money) with no runway,now its had goes down to 1.3,with a posibility of a third runway.....maybe labu is a high risk option,but maybe ha can do it,afterall MALAYSIA BOLEH kan.

i agree with u, they should build the lcct in labu becoz afterall MAHB will turn the lcct to cargo terminal:banana:

OshHisham

January 28th, 2009, 05:24 PM

Another look at Labu LCCT
by Gan Yen Kuan
Email us your feedback at fd@bizedge.com

“The Cabinet is leaning towards the airport now being constructed within KLIA,” one of the sources said. It is learnt that if the airport is to be built within KLIA, the cost can be kept to RM1.3 billion, lower than the estimated RM1.6 billion for the Labu LCCT.

It is understood that the government would ask Malaysia Airports Holdings Bhd (MAHB) and AirAsia — the two parties racing to build their own LCCTs — to “work together” towards a win-win solution.

:applause: good!

OshHisham

January 28th, 2009, 05:24 PM

i'll think lets have the LCCT in labu,with the NSVV the whole area will turn into an aeropolis that after 10years KLIA fail to achieve,evenmore the parking,food ERL tickets are all to expensive...MAHB earlier state the north KLIA is price at 3bilion(tax payers money) with no runway,now its had goes down to 1.3,with a posibility of a third runway.....maybe labu is a high risk option,but maybe ha can do it,afterall MALAYSIA BOLEH kan.

i can't believe after a long argument over this, you still blaming MAHB on KLIA's failure :ohno: and u even pointed to MAHB on ERL's fee? .....

i'm not sure either u understand the situation faced by MAHB or not....

i guess; NOT

rizalhakim

January 29th, 2009, 03:42 AM

FireFly likely to use Sepang LCCT
By Marina EmmanuelPublished: 2009/01/29

Firefly is likely to expand its scope of flights by using jets to fly out of the terminal in the event that AirAsia Bhd moves out

MALAYSIA Airlines (MAS) is contemplating using the low-cost carrier terminal (LCCT) in Sepang, in the event that AirAsia Bhd moves out.

And the likely user of the budget terminal will be the national carrier's wholly-owned subsidiary, FlyFirefly Sdn Bhd.

Business Times has learnt that Firefly, which currently operates turbo-propeller planes from its Subang and Penang hubs, is likely to expand its scope of flights by using jets to fly out of LCCT.

"Firefly could use the Boeing 737-800 jets, which MAS is set to take delivery this year, to operate from LCCT," an aviation expert said.

"This will enable Firefly to fill in the gap left by AirAsia (if they move out), while providing convenience to passengers once Malaysia Airports Holdings Bhd carries out plans to improve connectivity between the LCCT and the Kuala Lumpur International Airport terminal."

Firely is set to continue to operate from Subang's Terminal 3 with its ATR 72-500 turbo-prop planes, while it has the option to use the jets for routes which it cannot operate viably with the ATRs.

"With the jets, new regional routes like China, Vietnam, India, Thailand and Indonesia can be introduced from the LCCT," the source said.

However, these are to secondary airports in these countries and not to main airports now served by MAS.

FlyFirefly Sdn Bhd managing director Eddy Leong, when contacted, declined comment.

It is learnt that Firefly will remain profitable if it uses the 737-800 planes by offering a two-class service, which includes more premium and higher-yield passengers.

This compares to the current single-class service offered by AirAsia on its Airbus planes.

Besides AirAsia, the LCCT is currently used by other carriers like Cebu Pacific and Tiger Airways.

rizalhakim

January 29th, 2009, 03:48 AM

KLIA East @ Labu will be under SDVV

http://www.btimes.com.my/articles/sdby23-2/pix_bottom

Cerulean

January 30th, 2009, 02:03 PM

BREAKING NEWS! Airasia's proposed Labu LCC Airport is cancelled!

Labu airport is as good as off
By : Hamidah Atan & Regina Lee
http://nst.com.my/Current_News/NST/Friday/Frontpage/20090130190457/Article/index_html

PUTRAJAYA, Fri: The proposed new airport in Labu by AirAsia Berhad is as good as off. The decision was conveyed to AirAsia executives when they met the Deputy Prime Minister this afternoon. A source said the Government felt that AirAsia would not be able to raise the funds to develop the new airport.

Instead, Malaysia Airports Holding Berhad will build a new terminal near the Kuala Lumpur International Airport where they will work closely with AirAsia, a source said. AirAsia’s inputs in the building of the new terminal will also be taken into consideration,” the source said. The Cabinet is expected to formalize the decision in the next few weeks.

Earlier, AirAsia chief executive officer Datuk Tony Fernandes briefed Datuk Seri Najib Razak and Transport Minister Datuk Seri Ong Tee Keat on the proposed new airport to cater to low-cost carrier.

Fernandes presented a detailed report on KLIA-East and plans to make Kuala Lumpur the regional hub for low-cost carriers. Representatives of the Malaysia Airports Holding Berhad, Transport Ministry, Finance Ministry and Economic Planning Unit also attended the one-hour briefing.

In an immeidate reaction, Fernandes said: We were happy with the meeting. This is a big step for the development of AirAsia."

daeng_jal

January 30th, 2009, 02:44 PM

fuuuuuuuuuuuuuuuyoooooooooooooo

dengilo

January 30th, 2009, 03:01 PM

Ok MAHB time to wake up and get on with the permanent LCCT!!!Thats what tony wanted in the first place so he bikin kacau kacau with this Labu Labi airport idea!!So lets see how long before they get their act togetherlah.

TWK90

January 30th, 2009, 06:53 PM

Another news...

Source : http://www.themalaysianinsider.com/index.php/malaysia/17236-klia-east-called-off

KLIA East called off

KUALA LUMPUR, Jan 30 — It is confirmed. The controversial KLIA East project is off, stillborn at the drawing board because it had become too costly politically for the administration.

But it was not all bad news for Air Asia, the region’s largest budget carrier and the promoter of the idea to build the RM1.6 billion airport in Labu. The carrier managed to extract some concessions from the government, namely that Malaysia Airport Holdings Berhad (MAHB) build a new terminal by 2011 and consult Air Asia on the design and other issues pertaining to the operations of the facility.

Several government officials told The Malaysian Insider that MAHB was told to lower charges for the budget carrier, complete the construction on time and make the new terminal an energy efficient complex.

Today’s meeting was chaired by Finance Minister Datuk Seri Najib Razak and attended by Air Asia’s Datuk Seri Tony Fernandes, officials from the Ministry of Finance, Economic Planning Unit and MAHB.

When contacted, Fernandes said: “It was a positive meeting and we got a good hearing from everyone.’’ He declined to go into the specifics of the meeting.

Najib called for today’s meeting as a result of the firestorm of criticism which followed an announcement last month that the government had approved a plan by Air Asia to build a new LCCT in Labu. Critics assailed the government saying that this decision would hurt KLIA’s ambitions of becoming a regional hub. They also argued that if a new facility had to be built, it should be built within KLIA.

Air Asia countered by saying that MAHB was unable to build a new LCCT by 2011 to cater for its growth. It pointed out that MAHB was only able to build a new LCCT by 2014.

The government fearing a political backlash and unwilling to test its popularity in this more challenging political climate began sending out feelers a couple of weeks ago that it was looking for a compromise solution.

It received a helping hand from Sime Darby Berhad, the government-linked company which informed the government that it was only willing to sell a tract of land in Labu to Air Asia and was not providing any financing for the project.

This move threw into doubt whether Air Asia could raise the financing for the RM1.6 billion terminal and the RM700 million connectivity infrastructure.

Government officials, who were briefed about today’s meeting, said that MAHB and Air Asia will have to come back in two weeks with firm plans for the new LCCT.

“The DPM played the role of an honest broker. He did not take sides but wanted to make sure that national interest was served. This could only happen if the new LCCT was built in KLIA but Air Asia’s legitimate interests and concerns were addressed,” a government official told The Malaysian Insider.

It may have been a happy ending for all parties but this episode certainly raised some serious questions over decision-making in the government.

And begs the question on why MAHB and Air Asia could not be forced to the negotiating table earlier.

Arkdriver

January 30th, 2009, 07:08 PM

it's no brainer lah, we all know how tony and his excellent bargaining skills can work wonders.

daeng_jal

January 30th, 2009, 07:48 PM

pedang

January 31st, 2009, 02:51 AM

OshHisham

January 31st, 2009, 03:01 AM

yup, now everything falls again in tony favors, tax payer money by MAHB are being built to facilitade his request,he than will submitt his "wishlist" to MAHB(look like cristmas came early for tony) then an assurance than he will get low tax and charges (again probably sponcered by your truly-the tax payer again) just as his preferential treatment about to expire,he yet again get new one....this is on top of the 10billion KLIa project,the 1 billion yearly feed to KLIA and a subsidised rich man vehicles(the ERL) as poor people like mysef use the unsubsidized busses....that why i really want for tony to built his own airport,but he's smart,he know what malaysian will act,and at now people can rejoice thinking than they had won,but the real winner is again tony!!!!!...

"menang bersorak kampung tergadai" :)

there's nobody kampung yang tergadai pun..! ERL is such a comfy and im no rich but i still can afford. and 'tax payer moneys' are used for making infra for the tax payers too, if building LCCT is considered 'membazirkan wang rakyat', what else money can be used than this investment for nation's bid of becoming aviation hub? than u can be socialist then (even communist China built great infras).

gezz....stop talking like Leninist, k...:okay:

OshHisham

January 31st, 2009, 03:11 AM

btw, in a different press statement...Ong Tee Keat is again making another confusing statement. geezz....

this guy really a trouble maker...(where b4 he said government 'approved' Labu LCCT)

-----------------------------------

Decision On New LCCT In Labu In Three Weeks' Time

KUALA LUMPUR, Jan 30 (Bernama) -- The decision on AirAsia's proposal to build a new low-cost carrier terminal (LCCT) costing RM1.6 billion in Labu, Negeri Sembilan will be known in two to three weeks' time, said Transport Minister Datuk Seri Ong Tee Keat.

"Actually, the government has not made a decision on the matter. What is important is that all the fact finding and details arising will be scrutinised," he told Bernama after attending a Chinese New Year dinner function organised by the MCA, here, Friday.

Ong said the government needed time to decide on the matter as it involved many parties.

"The Transport Ministry, Economic Planning Unit, Finance Ministry, Malaysia Airports Holdings Bhd (MAHB) and AirAsia are meeting for the good of all parties concerned," he said.

Bernama on Friday reported that the government had rejected the proposal for a new LCCT in Labu, but the low-cost carrier was said to have several concessions, according to sources.

It was reported that MAHB would be given the responsibility to build a new LCCT near the existing terminal, which is next to the Kuala Lumpur International Airport (KLIA) in Sepang.

The sources were also quoted as saying that the decision to cancel the proposed project was conveyed to AirAsia at a meeting chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak and was attended by Finance Ministry, MAHB and AirAsia officials.

-- BERNAMA

nazrey

January 31st, 2009, 03:43 AM

Projek LCCT Labu ditolak

KUALA LUMPUR 30 Jan. – Kerajaan hari ini menolak cadangan AirAsia Bhd. untuk membina sebuah lapangan terbang baru berharga RM1.6 bilion di Labu, Negeri Sembilan.

Menurut sumber, syarikat penerbangan tambang murah itu bagaimanapun dikatakan memperolehi beberapa konsesi.

Malaysia Airports Holdings Bhd. (MAHB) difahamkan akan diberi tanggungjawab membina sebuah terminal penerbangan tambang murah (LCCT) yang baru, berdekatan terminal sekarang di Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) di Sepang.

Keputusan untuk membatalkan projek itu disampaikan kepada AirAsia pada mesyuarat yang dipengerusikan oleh Timbalan Perdana Menteri, Datuk Seri Najib Tun Abdul Razak dan dihadiri para pegawai Kementerian Kewangan, MAHB, dan AirAsia hari ini.

Sumber itu menyatakan AirAsia berjaya mendapat jaminan mengenai caj dan cukai lapangan terbang lebih rendah, yang ia akan berunding dengan MAHB dan juga dibenarkan memberi input mengenai spesifikasi LCCT baru itu.

Katanya, syarikat penerbangan tambang murah itu diberi masa untuk mengemukakan senarai keperluannya dalam LCCT baru itu.

Caj itu boleh diturunkan sehingga separuh, kata sumber tersebut.

AirAsia sentiasa mengadu tentang caj di LCCT sekarang kerana berpendapat caj dan cukai yang dikenakan di lapangan terbang itu sepatutnya lebih rendah daripada di KLIA ekoran kurang kemudahan.

Pada mesyuarat itu, AirAsia diketuai oleh Ketua Pegawai Eksekutif Kumpulannya, Datuk Seri Tony Fernandes.

Dalam satu kenyataan yang dikeluarkan selepas mesyuarat itu, Tony berkata, AirAsia menganggap hasil mesyuarat itu sebagai amat positif dan kini ia menunggu butiran lengkap.

Katanya, AirAsia komited bagi menyediakan perkhidmatan berkelas dunia, lima bintang melalui sebuah LCCT yang dibina khas.

Menurutnya, AirAsia turut komited menjadikan Kuala Lumpur sebuah hab serantau bagi syarikat penerbangan tambang murah agar dapat memberi sumbangan lebih besar kepada pertumbuhan ekonomi Malaysia.

“Dari segi kewangan, ini merupakan berita baik bagi AirAsia.

“AirAsia yang kini mempunyai geran yang tinggi, tidak perlu lagi mendapatkan pembiayaan untuk membina LCCT baru itu,” katanya. – BERNAMA

Govt Turns Down New LCCT Plan, Says Sources
January 30, 2009 23:51 PM

KUALA LUMPUR, Jan 30 (Bernama) -- AirAsia Bhd's proposal to build a RM1.6 billion airport in Labu, Negeri Sembilan has been turned down by the Government, but the low cost carrier managed to win some important concessions in the process, several sources said here Friday.

Malaysia Airports Holdings Bhd (MAHB) will be given the task of building a new low cost carrier terminal (LCCT), which will be located near the present terminal at KL International Airport (KLIA) in Sepang, said a source with knowledge of the outcome of a meeting held today between AirAsia, the Ministry of Finance and MAHB. Deputy Prime Minister and also Finance Minister, Datuk Seri Najib Tun Razak, chaired the meeting.

The source said AirAsia managed to get assurance about lower airport charges and tax, which it will negotiate with MAHB, and it will be also allowed to provide some input on the specifications for the new LCCT.

He said the low cost carrier was given time to submit its wish list for the new LCCT.

The charges could be lowered by as much as half.

AirAsia has been complaining about the charges at the present LCCT as it reasoned that with less facilities available, the airport charges and tax should be much lower than those imposed at KLIA.

At the meeting, AirAsia was led by its group chief executive officer Datuk Seri Tony Fernandes.

In a statement issued after the meeting, Tony said AirAsia regarded the outcome of the meeting as very positive and that it was now awaiting the details.

He said AirAsia was committed to providing its guest with world-class, 5-star service via a purpose-built LCCT.

He said AirAsia was also committed to making Kuala Lumpur a regional hub for low cost carriers and contributing significantly to the growth of Malaysian economy.

Financially, it is also good news for AirAsia, he said.

It already has a high gearing, and with this it does not have to seek funding for the new LCCT, he added.

-- BERNAMA

Khaw

January 31st, 2009, 10:30 AM

TF knows when to hold and fold. He calls it bluff with this Labu thingy...and he came out ahead again and again. He's got the politicians by their gonads and twisting them at the same time. OUCH!!

musang

January 31st, 2009, 11:18 AM

ha haa thot so.. si Tony dan 'Labu'nya lol.

daeng_jal

January 31st, 2009, 07:45 PM

there's nobody kampung yang tergadai pun..! ERL is such a comfy and im no rich but i still can afford. and 'tax payer moneys' are used for making infra for the tax payers too, if building LCCT is considered 'membazirkan wang rakyat', what else money can be used than this investment for nation's bid of becoming aviation hub? than u can be socialist then (even communist China built great infras).

gezz....stop talking like Leninist, k...:okay:

what wrong with socialism? but peliklah a capitalist like yourself don't like the idea of free market...and even care about ROI of the infra...or are you a communist that like big thing no matter if it appropriate or not?

nazrey

February 1st, 2009, 04:03 AM

Malaysia Airports to build low-cost terminal
By NST reportersPublished: 2009/01/31

The proposed RM1.6 billion low-cost carrier terminal project in Labu by AirAsia Bhd is as good as off.

This followed reservations raised at a meeting yesterday attended by Deputy Prime Minister Datuk Seri Najib Razak, Transport Minister Datuk Seri Ong Tee Keat and AirAsia chief executive officer Datuk Tony Fernandes, sources said.

The meeting, which lasted about an hour, was also attended by representatives from Malaysia Airports Holdings Berhad and senior officials from the Transport Ministry, Economic Planning Unit in the Prime Minister’s Department and the Finance Ministry.

“Malaysia Airports will build a new LCCT near the Kuala Lumpur International Airport (KLIA) in Sepang but they will have to work closely with AirAsia,” said a source.

“The company’s input in the building of the new terminal will have to be taken into consideration.”

The source also said the government felt that AirAsia would not be able to raise the funds to develop the airport that it had earlier proposed in Labu, Negri Sembilan.

Ong said an official decision would be announced in two to three weeks’ time as it involved many parties.

“The Transport Ministry, EPU, Finance Ministry, Malaysia Airports and AirAsia are meeting for the good of all parties concerned,” he told Bernama.

Sources said AirAsia had been given two weeks to provide its wish list, now that Malaysia Airports would be building a permanent LCCT at KLIA.

AirAsia would have follow-up meetings with Malaysia Airports and a final meeting with Najib in two weeks, they added.

Among the issues that will be discussed between AirAsia and Malaysia Airports are the specifications for the new LCCT and the passenger service charge.

It was reported on Jan 5, that conglomerate Sime Darby Bhd had obtained the cabinet’s approval to proceed with its proposed airport on its land in Labu, or KLIA-East, 22km from KLIA.

However, Najib said recently that the government was rethinking its earlier decision.

The government, he said, was still looking at the proposal and there was no formal decision yet.

Najib had also said that the proposal would have to be studied from all angles as the government needed to verify whether it could go ahead with it or a different arrangement was required.

AirAsia, in a statement released recently, had said it was looking forward to presenting Najib a detailed brief on KLIA-East and its plans to make Kuala Lumpur the regional hub for low-cost carriers.

“Since the cabinet’s approval of Central Malaysian Vision Valley project, of which the KLIA-East LCCT is a vital component, AirAsia and Sime Darby have been in negotiations to finalise the details.”

The budget airline had also said it had received numerous enquiries from domestic and international investors interested in the project.

The proposed airport in Labu would be AirAsia’s answer to its fear that Malaysia Airports would be unable to build a new permanent terminal in time to support its passenger and aircraft growth.

The Labu plan, however, has come under fire as the public and non-governmental organisations raised questions on the need for a new airport, considering that KLIA was under-utilised.

patchay

February 1st, 2009, 04:21 AM

Guan Eng challenges Tee Keat to make stand on LCCT
By Debra Chong

KUALA LUMPUR, Jan 31 —DAP secretary-general Lim Guan Eng wants the Transport Minister to state clearly the federal government's stand on the controversial deal to build a new, separate airport for low-cost airlines in Labu, Negri Sembilan.

Previously, Datuk Seri Ong Tee Keat announced the proposed Labu low-cost carrier terminal (LCCT) project had been given the green light by the Cabinet.

Yesterday, the Deputy Prime Minister called off the deal.

Lim expressed concern over the way the matter was being treated.

"This is a very big issue, not only because of the cost of the project but because of its implications as well. Now we are confused. Who is actually in charge?" Lim asked.

"Next time, if there are any questions on airports or transport, do we go to him or do we go to Najib and bypass Ong Tee Keat?" he asked.

Lim also wanted Ong to explain the federal government's reasons for building a new airport in an isolated location, saying that the suggested place did not "make economic sense".

He noted that AirAsia boss Datuk Tony Fernandes has accused Malaysia Airports Holding Berhad (MAHB) of being a "stumbling block" to the growth of the air transport industry.

But he also noted there was a need for a new LCCT to help boost economic growth and suggested that Penang can be the "logistics hub for the Northern Corridor Economic Region" as it is also the "gateway" to tri-lateral relations among the golden triangle of Malaysia-Thailand-Indonesia.

"I think Tony Fernandes feels he has not been given support. I think the government should give him that support," Lim said.

"If MAHB is the stumbling block, then they must facilitate and not block," he added.

patchay

February 1st, 2009, 04:43 AM

LABU AIRPORT AGAIN
By Dr. Mahathir Mohamad
on January 31, 2009 2:32 PM | Permalink | Comments (96) | TrackBacks (0)

1. A commentator MoMan who confesses to being a great admirer of mine and is involved in the Labu airport project has tried to explain why Labu airport is necessary.

2. However his reasons for wanting the airport at Labu is mainly because the KLIA is not efficient. Following are its shortcomings;

a. Because of the purchase of the wrong radar KLIA is handling only 35 aircrafts on its two runways when it should be handling 70. This causes delays morning, lunchtime and midnight

b. KLIA's sophisticated conveyor belt is not functioning well because sorting the bags is being done by immigrants who cannot read Malay or English

c. Weak security. Airport operator not investing and managing its people well.

d. Airport operator of the Low Cost Carrier Terminal wastes money building extensions at ridiculously escalated price.

3. Other points raised to justify Labu are;

a. Air Asia needs a permanent home fast.

b. By 2013 Air Asia will need to carry 25 million passengers.

c. KLIA built on swampy land - costly to build.

d. London has five airports. New York has three airports. So has Rome, Paris, Tokyo, Melbourne and Nice.

e. Resuscitate Keretapi Tanah Melayu from the living dead. KTM can make RM62 million a year carrying passengers from and to Labu airport.

4. Now if I may give my opinion; (a)-(d) are about inefficiency of KLIA. You don't solve inefficiency by building a new airport. I suspect immigrant labour would still be used at Labu.

5. Air Asia needs a permanent home fast. KLIA can provide that. Klia has 25,000 acres, bigger than Putrajaya. There should be enough space for the 25 million Air Asia passengers and more.

6. KLIA handles 25 million passengers now with two runways and 35 aircraft movements per hour.

7. Labu will have one runway and will need to handle 70 movements per hour in order to handle 25 million passengers. But according to you Gatwick with one runway and great efficiency (busiest runway in the world) handle only 40.6 movements per hour. Will Labu beat Gatwick and handle 70 movements per hour with one runway?

8. All those hubs have as many as five airports. But are they eight kilometres from each other? Heathrow is 40km from Gatwick, Stanstead, Croydon and Luton. All the airports are at least 40km from each other. Labu would be seven kilometres from KLIA. Even Subang is more than eight kilometres from KLIA.

9. It is the same with all the other airports serving the cities named.

10. KTM may not be making money but it is not dead yet if we go by the number of passengers using the commuter. KTM and the Express Rail Link (ERL) will have to invest a substantial sum to carry 6 million more passengers. They may not want to. In which case you will have to rely on road transport or subsidise their development. You have already said you will not do so.

11. Air Asia does not serve most of the long haul routes originating or terminating in KLIA. There will have to be double checking and double handling if Air Asia passengers want to use the KLIA for their travels to or from foreign countries. You need to have dedicated roads or trains between Labu and KLIA.

12. The biggest argument against Labu is its nearness to KLIA. With two control towers uncoordinated control over movements and stacking before landing, with 70 x 2 movements per hour, the possibility of crashes is very real.

13. The government appears to be in control of both Air Asia and KLIA. Why cannot there be negotiations over handling charges instead of spending RM1.6 billion on a new airport?

rizalhakim

February 1st, 2009, 10:21 AM

Ong Tee Keat the new Sammy Vellu hehe...

Sheik

February 2nd, 2009, 05:18 PM

Flying back to original LCCT plan

By PAULINE ALMEIDA February 02, 2009 Categories: News

The original plan for the second Low- Cost Carrier Terminal (LCCT) proposed by Malaysia Airports Holdings Bhd (MAHB) two years ago may be revived.

Transport Minister Datuk Ong Tee Keat said he supports the revival of the proposal following the Federal government’s rejection last Friday of the controversial RM1.6 billion KLIA-East@ Labu project in Negri Sembilan.

Ong said as far as his ministry was concerned, there was a need for the terminal in the future and “since MAHB is thinking of reviving this LCCT, we are all for it”.

Whether it will be built with government or private funding is not the ministry’s concern, he added.

“I have said from day one that we need an LCCT based on what we have planned for the future,” he said.

It is understood that the proposal for the LCCT near the KL International Airport (KLIA), handed to the Finance Ministry back in 2007, has been met with lukewarm response.

Industry sources revealed that MAHB did not get any directive from the ministry on the proposal, and that the ministry showed scant regard for MAHB's efforts on the project.

Asked whether there was any conflict between MAHB and AirAsia chief executive officer Datuk Tony Fernandes over matters involving the LCCT operations, Ong said “yes”.

“There were instances when I had to step in to resolve the issues.”

In the case of KLIA-East, he said that there were several issues that finally sealed the fate of the controversial project, among which was compliance with International Civil Aviation Organisation (ICAO) requirements, especially with regard to its proximity to KLIA, the construction of another air traffic control centre, complete with a control tower about 10km away in a straight line from the one in KLIA, inter-terminal transfers and connectivity issues.

ICAO had expressed safety concerns over two air traffic control towers so close together, saying that it would give rise to confusion and overload communication channels. The Department of Civil Aviation (DCA) had said that a second air traffic control centre would stretch its already-thin cadre of flight controllers to breaking point.

“The air traffic control tower for KLIA-East would have to be built using government funds and the ministry would have had to put all this in place,” Ong said.

“It would also be necessary to provide a link for the convenience of passengers. Who’s going to pay for this? Don't expect the government to come up with the money for it.”

Asked how much it would have cost the authorities to build an air traffic control tower at KLIA-East, Ong said it had not been worked out as AirAsia had not tabled a detailed proposal to the Economic Planning Unit (EPU).

“We will only go into it if the detailed proposal is submitted to the EPU,” he added.

Malay Mail reported on KLIA-East@ Labu project on Jan 13. The plan calls for the construction of a purpose-built terminal to be sited between Nilai and Bandar Enstek to serve 30 million passengers annually.

A senior DCA officer had said that even if AirAsia and conglomerate Sime Darby Bhd went ahead with the terminal, pilots and passengers would still have to put up with additional delays, a problem evident at its current location in Sepang.

This is the result of the “pecking order” under which airports operate. KLIA currently sits on top of the totem pole and gets first dibs at almost everything.

In other words, AirAsia would lose out in terms of priority for take-off and landing clearances at the LCCT, given that KLIA is still the main airport.

Plan for new LCCT mooted in 2007

It was reported on July 18, 2007, that Malaysia Airports Holdings Bhd (MAHB) had plans to build a new building at the Low-Cost Carrier Terminal (LCCT) at the Kuala Lumpur International Airport (KLIA) to cope with increasing demand.

Its senior general manager of operations, Datuk Azmi Murad, had said that the new building would replace the existing LCCT, which had been operating since March 2006. The building is located next to the Malaysia Airlines cargo building.

He had said that the LCCT had been moving seven million passengers per year with four operators, including AirAsia, and was close to reaching its maximum capacity of 10 million passengers.

"The demand by low-cost carriers has been increasing steadily every year by about 30 per cent. The new building with all the new facilities can handle up to 25 million passengers per year,” he had told reporters then.

History

• KLIA-East would be one component of Sime Darby Bhd’s mammoth 80,000-acre Malaysian Central Vision Valley project at Labu.

• The government had initially given the nod to AirAsia and Sime Darby to construct and operate a new terminal, to be built on a 3,000 acre (1,400ha) site at Labu, near Seremban.

• The RM1.6 billion project drew criticism from various quarters when it was first announced. They argued it was rushed through without public consultation.

• Critics were unconvinced that public funds would not be utilised for the mega project, despite assurances from AirAsia group chief executive officer Datuk Tony Fernandes.

• Developers claimed that once approved by the Cabinet, they would bear the full cost of the new terminal and infrastructure at KLIA-East, including:
- A 7km branch road to link KLIA East to KLIA
- An additional 3km KTM Komuter railway line from the Labu railway station to provide direct access from all other KTM stations
- A 7km ERL link
- Customs, Immigration and Quarantine (CIQ) facilities
- An air traffic control tower, as well as navigational aids and enhanced security

• Many feared that two busy airports located so close to each other would exert greater demands on air traffic controllers. Further, due to the shortage of controllers in the country, an additional airport would force the Civil Aviation Department to split the already-thin cadre of controllers. The question of who would manage the other essential services, and for what period, remains unanswered.

Why Did Badawi ignore MAHB plans for the permanent LCCT. At that time, they could have approved and financed the project and we won't be in this mess right now. How to build new LCCT when MAHB, Airasia and finance ministry are at odds? Always last minute planning as usual and the passengers end up suffering! Just so ridiculous. Malaysia boleh, yeah right!

rizalhakim

February 3rd, 2009, 04:18 AM

On AirAsia’s proposal to build a new low-cost carrier terminal costing RM1.6bil in Labu, Negri Sembilan, he said: “I am not going to comment on this, we will just have to wait.

“The airport will be good, whatever happens. I think AirAsia has made its case very well.”

rizalhakim

February 3rd, 2009, 08:13 AM

Kewajaran LCCT dikekalkan di KLIA

Oleh Ainul Asniera Ahsan
ainul.ahsan@utusan.com.my

http://www.utusan.com.my/pix/2009/0202/Utusan_Malaysia/Ekonomi/ek_02.1.jpg
Ketua Pegawai Eksekutif AirAsia, Datuk Seri Tony Fernandes menunjukkan tapak terminal penerbangan tambang murah yang dicadang dibangunkan khas untuk syarikat itu di Labu Negeri Sembilan baru-baru ini. - AFP

--------------------------------------------------------------------------------

Meskipun AirAsia memerlukan Terminal Penerbangan Tambang Murah (LCCT) baru di Labu, Negeri Sembilan untuk menampung 15 juta penumpang menjelang 2010 namun ia masih tidak cukup kuat untuk syarikat penerbangan tambang murah itu meraih sokongan daripada kerajaan.

Pelbagai dakwaan kerasnya terhadap Malaysia Airports Holdings Bhd. (MAHB), seperti lambat respons terhadap pertumbuhan pesat penumpang AirAsia, juga nampaknya tidak mampu menangkis kritikan demi kritikan yang dilemparkan sehingga hari ini.

Malah, pada Jumaat lalu, kerajaan menolak cadangan syarikat penerbangan tambang murah itu untuk membina terminal baru yang dikenali KLIA East yang menelan belanja sebanyak RM1.6 bilion.

Bagaimanapun, AirAsia tidak pulang dengan tangan kosong apabila syarikat penerbangan tambang murah itu dilaporkan berjaya memperoleh beberapa konsesi.

Selain itu, AirAsia juga berjaya mendapat jaminan mengenai caj dan cukai lapangan terbang lebih rendah dan syarikat penerbangan itu akan berunding dengan MAHB mengenainya dan dibenarkan memberi input mengenai spesifikasi LCCT.

Mengulas mengenai perkembangan cadangan pembinaan KLIA East, tokoh ekonomi negara, Tan Sri Ramon Navaratnam berkata, walaupun kerajaan perlu memberi fokus kepada pelaksanaan projek impak tinggi untuk merangsang ekonomi tetapi ia bukan untuk projek KLIA East.

Menurut Navaratnam, Pelan Induk Lapangan Terbang (PILT) merupakan pelan yang terbaik pernah dilahirkan oleh Malaysia untuk menjadikan Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA) sebagai hab penerbangan utama negara.

Oleh itu, prosedur PILT perlu dipatuhi kerana ia adalah untuk kepentingan rakyat Malaysia pada jangka masa panjang.

''PILT dibuat bukan dalam masa setahun atau enam bulan sebaliknya memakan masa bertahun-tahun, jadi saya tidak nampak rasional untuk mengadakan satu LCCT yang bukan di dalam lingkungan KLIA,'' katanya kepada Utusan Malaysia.

Orang awam yang tidak ketinggalan membicarakan isu itu di warung-warung turut mempersoalkan mampukah Sime Darby Bhd. (Sime Darby) menanggung kos pembinaan KLIA East sebanyak RM1.6 bilion?.

Apabila difikirkan semula, kenyataan-kenyataan itu memang ada kebenarannya meskipun persoalan tersebut dicetuskan daripada borak-borak kosong di warung-warung tepi jalan.

Sebagai antara syarikat utama yang menjana pendapatan untuk Permodalan Nasional Bhd. (PNB), mungkinkah tindakannya untuk melaksanakan projek itu akan menjejaskan tanggungjawabnya kepada firma pelaburan negara tersebut?.

Kebarangkalian memang ada kerana masakan AirAsia berkemampuan untuk membayar kos pembinaan KLIA East itu secara tunai. Apakah akan terjadi kepada nasib pelaburan bagi 6.56 juta pelabur Amanah Saham Bumiputera (ASB) yang rata-rata dimiliki oleh golongan bumiputera?.

Lagipun dalam keadaan sekarang, masih adakah institusi kewangan yang berani untuk mengeluarkan wang sebanyak itu? Ia kerana, paling tidak tempoh pembayaran semula projek pembinaan KLIA East pasti melibatkan tempoh jangka sederhana dan panjang.

Satu lagi persoalan benarkah KLIA East itu akan dibiayai atas inisiatif swasta (PFI). Perlu difahami bahawa PFI dalam istilah ekonomi adalah projek yang dibiayai sepenuhnya oleh swasta tetapi di Malaysia amalan itu tidak berlaku seperti itu.

Di Malaysia, amalan PFI digunakan dalam dua keadaan iaitu pertama, PFI dapat memudahkan pelaksanaan projek kerajaan dengan lebih cekap dengan mengimbangi perkongsian risiko dan ganjaran antara kerajaan dengan pihak swasta.

Kedua, PFI boleh digunakan dengan kerajaan memberi bantuan untuk meningkatkan daya maju projek sektor swasta yang dikategorikan sebagai strategik atau dalam bidang yang dipromosikan.

Jadi, yang mana satu pilihan AirAsia? Sama ada yang pertama atau kedua nampaknya kerajaan masih perlu membuat pelaburan dalam projek tersebut. Untuk lebih terperinci lagi, kita boleh mengambil contoh projek pembangunan Putrajaya.

Ia adalah PFI yang dibangunkan oleh Petroliam Nasional Bhd. (Petronas). Walaupun Putrajaya kini sudah berusia lebih 12 tahun tetapi sehingga sekarang kerajaan masih melakukan pembayaran untuk projek tersebut.

Justeru, memang wajarlah kerajaan menimbangkan semula cadangan kelulusan KLIA East supaya keputusan akhir berhubung projek itu tidak menimbulkan tanda tanya kepada rakyat.

Daripada membiayai projek yang hanya menguntungkan pihak tertentu sahaja, adalah lebih baik sekiranya kerajaan membuat pelaburan yang menguntungkannya seperti menggantikan sistem radar penerbangan antarabangsa yang kini sudah melewati usia lebih 15 tahun. Bukankah itu lebih baik untuk menjaga keselamatan tanah air!

Lebih penting dan utama, sistem penerbangan negara tidak perlu bergantung kepada Singapura lagi.

rizalhakim

February 5th, 2009, 06:12 AM

No Losers In Cancellation Of Labu Terminal, Says OSK

KUALA LUMPUR, Feb 4 (Bernama) -- The reported cancellation of the proposed permanent low cost carrier terminal (LCCT) KLIA East @ Labu by AirAsia Bhd, may not be bad news for all the parties involved, says an analyst.

Malaysia Airport Holdings Bhd (MAHB) for one, will finally be able to take a breather amid speculation that it would build and operate the new LCCT near the Kuala Lumpur International Airport (KLIA), said OSK Research recently.

"While we think the government may instead offer some incentives to AirAsia, which could eventually erode MAHB's bottom-line, this would easily be compensated by the government, as part of the sweeteners for the latters ongoing financial restructuring plan scheduled to be completed by the end of the first quarter of this year," it said.

The research company said that it was also not all bad news for AirAsia which was given an opportunity to vocalise its demand in order to better cater for its low cost carrier business model and request for a waiver on aeronautical charges.

However, it said although AirAsia is expected to win some additional incentives and lower charges, the quantum is likely to be small as the company already enjoys various incentives.

As for the impact on Malaysia Airlines (MAS), OSK Research said that at first glance, it may lose out to AirAsia, but the impact is expected to be only nominal.

"MAS may lose out to AirAsia, especially if its peer is able to generate significant savings from any additional incentives that may be granted by the government and translate this into lower air fares.

"However, we are doubtful over the significant quantum of savings that AirAsia may make," OSK Research said.

On the aviation industry, it said airlines' yields will come under pressure in 2009 as the industry outlook remained cloudy and given that just more than 400 planes were delivered in the Asia-Pacific in 2008.

It said the liberalisation of routes between Asean capitals and the drop in demand for long haul business travel would pressure all airlines.

At the same time, full-frill players are aggressively looking at ways to make a dent in the market share of low-cost carriers, thus intensifying the competition at a time when demand was shrinking, it added.

-- BERNAMA

rizalhakim

February 5th, 2009, 06:21 AM

LCCT PLANS: Take a leaf out of the JFK book
By : P. GEORGE, Johor Baru

THE Federal Government has made the right decision to cancel the proposed KLIA East @ Labu low-cost carrier terminal (LCCT) project.

One hopes the parties involved -- AirAsia and Malaysia Airports Holdings Bhd (MAHB) -- will find a win-win approach and reach a solution that would maximise the utilisation of the KL International Airport (KLIA) at Sepang and meet, if not exceed, the objectives of AirAsia.

I am sure the top management of AirAsia and MAHB are conscious of the national objective to turn KLIA into a premier regional air hub that competes on an equal footing with Singapore's Changi Airport, Bangkok's Suvarnabhumi International Airport and Hong Kong International Airport.

AirAsia and MAHB, and Malaysia Airlines, should also work with the government on measures to woo more business visitors and tourists into the country through KLIA, making it the hub for flights to other regional and international destinations.

The government should be proactive in getting more international airlines to operate flights to KLIA and to make it their regional hub (for example, the Australia-UK "kangaroo" route or the US/Canada-India route).

As for the proposed new LCCT at KLIA, I urge AirAsia and MAHB to study closely the approach adopted by the US airline JetBlue Airways when it decided to build a new dedicated Terminal 5 at New York's JFK International Airport.

Terminal 5 handles all of JetBlue Airways' domestic and international flights from the airport. Terminal 5 has an area of 59,000 sq metres and is built on a 29ha site.

It has 26 gates, a handling capacity of up to 20 million passengers annually with up to 250 daily departures, and is connected with JFK International Airport's AirTrain rail system.

There are 1,500 parking spots, 22 restaurants and 25 shops in Terminal 5. More importantly, it has 40 check-in counters, 65 self-service kiosks and 12 roadside check-in counters. It offers a free wi-fi service among other passenger-centric facilities.

Terminal 5 was developed jointly by JetBlue Airways and the Port Authority of New York & New Jersey (the operator and manager of JFK International Airport).

AirAsia and MAHB should plan and build a new LCCT at KLIA along these lines.

It is important that AirAsia and MAHB get this right the first time around.

Every aspect must be thoroughly looked into and planned for, including security, transport and communication links (road and rail, cars and buses), Customs and Immigration services, passenger convenience for arrivals and departures, check-in and baggage claim facilities and fast and easy connections (including seamless baggage transfers) to other KLIA terminals for passengers who arrive on AirAsia flights and need to connect with other flights operating from KLIA.

There must be built-in expansion capability that will allow easy scaling up to handle more passengers and flights as the need arises.

Let's avoid what happened with the new Johor Baru Customs and Immigration complex, which has been the subject of numerous complaints since it opened.

As one of the first points of entry into the country for tourists and business visitors, KLIA has to project an image of user-friendly efficiency and sophistication from its staff and its facilities.

Changi and Hong Kong airports are the regional benchmarks that KLIA has to match and exceed.

One hopes the new LCCT at KLIA will be able to achieve this objective.

Khaw

February 5th, 2009, 10:23 AM

^^BTW JetBlue is also a budget airline, or LCC in alphabet-soup-happy Malaysia:)

rizalhakim

February 6th, 2009, 08:47 AM

Clearing runways

THE cabinet's decision late last week to end this "KLIA-East@Labu" nonsense was overdue but nonetheless welcome. The matter should never have been allowed to get this far, dangle unresolved this long or head in such bizarre directions: to relieve pressure on what had become a cattle-pen of a low-cost carrier terminal by building another airport just 22km away from the 100sq km expanse of Kuala Lumpur International Airport, notable for its excess capacity and empty marble-clad spaces. At last, the message has been delivered to Malaysia Airports Holdings Bhd and AirAsia to work this out.

This would mean reconstructing their working arrangement in the bright light of reality. Nearly seven years ago, when AirAsia was compelled to relocate from Subang to Sepang, it seemed MAHB was grudgingly but indulgently allowing this parvenu to funnel its low-rent hordes through essentially a gap in the back fence by the cargo yard. It is worth recalling that few outside of AirAsia's upper management quite expected the carrier's astonishing success and the speed of its growth. At the outset targeting 10 million passengers per year by 2012, the airline has now doubled that estimate. The present LCCT's designed handling capacity of 10 million has been well exceeded, and its stated limit of 15 million is expected to be breached this year. However, any of the millions passing through that sclerotic knot today would contend all limits were transgressed long ago.

AirAsia's success in acquiring shuttle routes and long-haul destinations, matched by sterling brand development and marketing, has made it a Malaysian success story so big and fast, it was in danger of meltdown on its own red-hot ambition. But MAHB should no longer play the role of fire-break. The upstart start-up has a shot at global glory in the most lethal environment for airlines in history; the country could do with such a success story; let the chocks be removed from AirAsia's landing gear. The irony is that KLIA was conceived from the outset to allow for such development, and should readily accommodate everything AirAsia might need for its wide-bodies, up to and including more runways. The benefits for passengers in ease of access to both terminals would be immeasurable. It makes sense, for the airline industry and the country, for MAHB and AirAsia to intertwine business models. It's only regrettable that it took a cabinet decision to make it so.

Pansori

February 8th, 2009, 10:39 PM

There is an article in The Economist: http://www.economist.com/world/asia/displaystory.cfm?story_id=13061352

Terminal declined

Feb 5th 2009 | KUALA LUMPUR
From The Economist print edition
Less a setback for a budget airline than a blow to the government’s credibility

http://media.economist.com/images/20090207/0609AS4.jpg
Looking for a cheap parking place

IT WAS billed as the people’s airport, a M$1.6 billion ($440m) international gateway to be owned and operated by AirAsia, Malaysia’s ambitious budget airline. Private land had been found, close to Kuala Lumpur International Airport (KLIA). Malaysia’s cabinet had given its approval. But a chorus of whines from politicians, pundits and the state company that owns KLIA (and knows a competitor when it sees one) have clipped AirAsia’s wings. The government now insists the carrier must stay at KLIA, which has promised to build it a new terminal. Sime Darby, the oil-palm company that owns the land, has been forced to drop its plans. As policy flip-flops go, this takes some beating.

What in effect killed AirAsia’s plans was the intervention on January 30th of Najib Razak, the deputy prime minister. The fiasco has exposed the wavering grip on power of Abdullah Badawi, the lame-duck prime minister, who is to be succeeded by Mr Najib in March. Mr Najib is a protégé of Mahathir Mohamad, prime minister for 22 years until 2003, who had been among the shrillest critics of the project.
Click here

AirAsia, however, may yet have the last laugh. So far, its trajectory has been relentlessly upward. It launched in 2002 with two leased planes. It currently has 76 aircraft, including the first batch of 25 Airbus A330s on order for AirAsia X, its long-haul subsidiary. Last year it carried 19m passengers within Asia and the Pacific. Of these, around 10m shuffled through KLIA’s satellite low-cost carrier terminal, a converted cargo facility opened in 2005. AirAsia forecast that by 2011 it would exceed the terminal’s capacity of 15m passengers. It is already short of parking bays for its aircraft, and was looking for an alternative.

Tony Fernandes, the bullish chief executive, says that his dream of a new airport was born out of frustration with Malaysia Airports, KLIA’s operator, which is controlled by Khazanah Nasional, the government’s investment fund, as is Malaysia Airlines, the national flag-carrier. Last year Mr Fernandes wrote on his company website that a new airport by 2011 was a matter of life or death for AirAsia. Opponents of the project argued that a rival airport could be the kiss of death for KLIA, which opened in 1998, caters for around 25m passengers a year and aspires to be a regional hub. A private airport would inevitably require public infrastructure spending. Moreover, Malaysia’s capital is already served by three airports. To build a fourth seems a mite extravagant.

Critics say that a stronger government would have made a decision one way or the other and stuck to it. As it is, taking the project away from a successful private firm, AirAsia, and giving it to a government-owned monopoly hardly seems reason for cheer. AirAsia has delivered huge benefits to Malaysia by bringing in foreign tourists, creating jobs and cutting the cost of air travel. It aims to carry 60m passengers by 2013. It is already Malaysia Airport’s biggest customer. Yet instead of rolling out the red carpet for it, the authorities seem to be trying to pull the rug out from under it.

AirAsia did, however, win concessions from Mr Najib. Officials say these include a say in the design, cost and operation of the planned new terminal. Mr Fernandes declined to comment. Like all budget carriers, AirAsia wants to pare costs, which is why it refuses to berth its planes at KLIA’s expensive glass-and-steel terminal. A properly equipped terminal with a low service charge would do nicely. Indeed, access to such a terminal may have been AirAsia’s intention all along. Its threat to build a private airport managed to put some pepper on the tail of policymakers, says Peter Harbison, of the Center for Asia Pacific Aviation in Sydney. A bit drastic, but effective. Last year Malaysia Airports reportedly told AirAsia it would take four years to build a terminal. The new deadline is 2011. Amazing what competition can do.

rizalhakim

February 12th, 2009, 06:01 AM

Kabinet putuskan pembinaan LCCT baru - Tee Keat
12/02/2009 11:03am

KUALA LUMPUR 12 Feb. – Keputusan sama ada cadangan pembinaan Terminal Penerbangan Tambang Murah (LCCT) di Labu, Negeri Sembilan diteruskan atau sebaliknya hanya boleh diputuskan oleh Kabinet

Menteri Pengangkutan, Datuk Seri Ong Tee Keat berkata, ia kerana pembentangan cadangan LCCT itu dikemukakan kepada Unit Perancangan Ekonomi (EPU) dan Kabinet. - Utusan

....hmm tak abis lagike??.....

OshHisham

February 12th, 2009, 06:29 AM

aku rasa Tee Keat nak Labu, tp Najib taknak Labu....so, ada conflict kot....

in this case, Najib kena berkeras lah....

patchay

February 12th, 2009, 10:22 AM

aku rasa Tee Keat nak Labu, tp Najib taknak Labu....so, ada conflict kot....

in this case, Najib kena berkeras lah....

Tee Cat ni macam ada interest kat project Labu Labi

rizalhakim

February 12th, 2009, 10:42 AM

AirAsia sees LCCT issue resolved soon
Published: 2009/02/12

AIRASIA Bhd hopes that the issue over a new low-cost carrier terminal (LCCT) will be resolved soon, its group chief executive officer Datuk Seri Tony Fernandes said today.

“It will be resolved at some stage,” he said.

“The quicker the better. We got to move. I think every effort is being made to resolve it quickly,” he told reporters after launching the airline’s “Pick A Seat” service in Kuala Lumpur.

The government recently turned down AirAsia’s proposal to build a RM1.6 billion airport in Labu, Negeri Sembilan, but the low-cost carrier managed to win some important concessions in the process, said a recent news report quoting sources.

Malaysia Airports Holdings Bhd (MAHB) will be given the task of building a new LCCT, which will be located near the present terminal at Kuala Lumpur International Airport (KLIA) in Sepang, the report said.

It added that AirAsia managed to get assurance about lower airport charges and tax, which it will negotiate with MAHB, and it will be also allowed to provide some input on the specifications for the new LCCT.

AirAsia has been complaining about the charges at the present LCCT as it argued that with less facilities available, the airport charges and tax should be much lower than those imposed at KLIA.

Meanwhile, AirAsia is eyeing further expansion into India and China in the near term, said Fernandes.

“Tiruchirappalli (in India) has been a huge success,” he told reporters when asked about the new destinations that AirAsia was planning to fly.

He said that besides India and China, AirAsia was also planning to fly to Taipei, Taiwan and South Korea. - Bernama

...so case closed....lets move on.....

Takamachi_Nanoha

February 14th, 2009, 03:25 PM

sape bagi angpow besar pasti menang :lol:bagi aku sikit lah.:lol:

rizalhakim

February 18th, 2009, 06:34 AM

Wednesday February 18, 2009
Labu LCCT proposal not finalised, says Tee Keat

A FINAL decision has not been made on whether to proceed with or scrap the proposal to build the low-cost carrier terminal in Labu, Transport Minister Datuk Seri Ong Tee Keat said in a written reply to Loke Siew Fook (DAP – Rasah).

He said a detailed and comprehensive study was being made to ensure that the project was feasible and would benefit the people.

“Feedback from government agencies, the private sector, non-governmental organisations and individuals will be considered before a final decision is made,’’ he said.

Ong said AirAsia would have to bear the cost of building a new LCCT in Labu as it would be a privatised project.

“This will include connectivity costs such as road-construction and rail tracks and other buildings related to managing an airport.

“AirAsia would also have to comply with standards and operational procedures of an airport including securing licences from the Transport Ministry,’’ he said.

This would include complying with airport management procedures, air traffic control systems and handling of passenger transfer procedures set by the International Civil Aviation Organistion, he said.

....mamatni masih harap LCCT Labu wujudla......

OshHisham

February 18th, 2009, 02:51 PM

hoi senyap lah Tee Keat!! menyampah betul lah aku mamat ni..!! just let Najib talk about LCCT lah....

nazrey

February 22nd, 2009, 09:06 PM

Govt firm in decision to reject new Labu terminal: Najib
2009/02/22

PHUKET, Sun.:The government is firm in its decision to reject the plan by AirAsia Bhd and Sime Darby to build a RM1.6 billion low-cost carrier terminal (LCCT) Labu, Negeri Sembilan, Deputy Prime Minister Datuk Seri Najib Tun Razak said today.

He said the project cannot be continued according to the original plan as Sime Darby would not pay the RM800 million infrastructure construction cost.

"They will only sell the land to the party that is building the infrastructures. If Airport Malaysia (Malaysia Airports Holdings Bhd (MAHB), it means sell to Airports Malaysia...they (Sime Darby) will not pay for the RM800 million infrastructure cost," he told Malaysian journalists covering the Special Asean+3 Finance Ministers' Meeting in this tourist resort here Sunday.

Najib, who is also Finance Minister said he had received confirmation in "black and white" from Sime Darby on the matter.

"If they (Sime Darby) did not contribute, there is no basis for the project to be considered," he said.

Magician

February 23rd, 2009, 02:32 AM

What a joke.... here the Transport Minister said will furhte evaluate the Labu LCCT... that side Najid said no to the Labu LCCT... what is our government doing...? slapping each other?

and very funny... I thought Sime Darby should have calculated their budget spending on Labu LCCT before announcing to the public... and now... not enough FUNDS???

What are you guys doing!?

Sime Darby lacks funds, new terminal to be built within KLIA
By EDDIE CHUA

PHUKET: The proposed RM1.6bil low-cost carrier terminal (LCCT) project in Labu, Negri Sembilan, has been cancelled.

Deputy Prime Minister Datuk Seri Najib Tun Razak said the project would not be carried out as Sime Darby Berhad had no funds to initiate the infrastructure.

“Instead, the new LCCT will be built within the KL International Airport,” he said after attending a special Asean + 3 Finance Ministers meeting yesterday.

He said Malaysia Airports Holdings Berhad would build the new LCCT.

Malaysia Airports is also expected to work closely with AirAsia. It is understood that the budget airline’s input in the building of the new terminal will be taken into consideration.

“We are still negotiating the terms and conditions with AirAsia on the new LCCT,” he said.

Najib’s announcement put paid to the notion that the government was considering having the LCCT in Labu.

“The decision is final. The LCCT in Labu has been scrapped,” he said.

On the mini-budget to cushion the impact of global financial woes on the local economy, Najib said it “will be bigger in size than what is being speculated.”

Najib, who is also the Finance Minister, will table the mini-budget in Parliament on March 10.

TWK90

February 23rd, 2009, 02:53 AM

At the end of the day, good to see no more Labu LCCT...

Although well..........this project should not appear in the first place...

rizalhakim

February 23rd, 2009, 08:46 AM

Najib shuts the door on Labu LCCT

DEPUTY Prime Minister Datuk Seri Najib Tun Razak yesterday quashed any possibility of reviving the proposed low-cost carrier terminal (LCCT) in Labu, Negri Sembilan.

"We have decided. The project in Labu cannot continue because Sime Darby will not cover the infrastructure cost. They will only sell the land to the party developing the LCCT," he told the Malaysian media here.

Najib, who is also finance minister, said the infrastructure cost related to the proposed LCCT in Labu would amount to RM800 million.

"I received confirmation from Sime Darby. If they are not contributing (towards the infrastructure cost), then there is no basis for the project to be considered."

Najib said the new LCCT would be built at the Kuala Lumpur International Airport (KLIA) in Sepang.

He said AirAsia's requirements for the new LCCT, such as parking charges, were being negotiated.

It was reported last week that the proposal for the Labu LCCT was still under discussion.

A Bernama report quoted Transport Minister Datuk Seri Ong Tee Keat as saying in a written reply in Parliament that a final decision had not been made on whether to proceed with or scrap the proposal to build the terminal.

The report said a comprehensive study was being done to ensure that the project was feasible and would benefit the people.

Ong also reportedly said AirAsia Bhd would have to bear the cost of building the new LCCT as well as take on the connectivity costs, such as constructing roads and rail tracks and other infrastructure.

YeahWho

February 23rd, 2009, 05:22 PM

At the end of the day, good to see no more Labu LCCT...

Although well..........this project should not appear in the first place...

I second that. Let's just close this thread. Haha...:lol:

nazrey

February 23rd, 2009, 07:41 PM

patchay

February 24th, 2009, 02:38 AM

big slap for OTK...

rizalhakim

February 24th, 2009, 06:12 AM

Bye-bye Labu, semua orang lega

Oleh Ainul Asniera Ahsan
ainul.ahsan@utusan.com.my

LEGA. Pasti itulah yang dirasai oleh Malaysia Airports Holdings Bhd. (MAHB) dan para pengkritik projek Terminal Lapangan Terbang Tambang Murah (LCCT) di Labu, KLIA-East apabila Datuk Seri Najib Tun Razak mengulangi kenyataannya bahawa projek tersebut tidak akan diteruskan.

Sebaliknya, Timbalan Perdana Menteri berkata, LCCT yang baru akan dibina di dalam lingkungan kawasan Lapangan Terbang Antarabangsa Kuala Lumpur (KLIA), mengikut Pelan Induk Lapangan Terbang (PILT).

Kenyataan itu, memberikan titik noktah bahawa cadangan pembinaan LCCT di Labu oleh syarikat konglomerat, Sime Darby Bhd. (Sime Darby) untuk AirAsia Bhd. (AirAsia) tidak dapat direalisasikan.

Diharap dengan kenyataan tersebut, ia akan menamatkan terus cadangan asal pembinaan LCCT di Labu yang sebelum ini mendapat sokongan kuat daripada Kerajaan Negeri Sembilan.

Keputusan itu, membuktikan kerajaan begitu prihatin terhadap kritikan hebat yang dilemparkan oleh pelbagai lapisan rakyat Malaysia yang bimbang akan keselamatan udara negara.

Isu keselamatan itu timbul apabila Ketua Pegawai Eksekutif Kumpulan AirAsia, Datuk Seri Tony Fernandes menyatakan KLIA-East akan mempunyai menara kawalan trafik udara dan landasan sendiri.

Kebanyakan rakyat Malaysia juga kurang senang dengan tindakan syarikat konglomerat, Sime Darby Bhd. (Sime Darby) melaksanakan projek bernilai RM1.6 bilion kerana dilihat sebagai satu pembaziran kerana kedudukan yang terlalu hampir dengan KLIA. Biarpun, pelaksanaannya adalah inisiatif pembiayaan swasta (PFI), kerajaan juga dilihat bakal menanggung kosnya.

Bagi pelabur-pelabur Permodalan Nasional Bhd. (PNB), tindakan Sime Darby itu dikhuatiri menjejaskan pendapatan syarikat tersebut, sekali gus memberi impak kepada tanggungjawabnya kepada firma pelaburan negara itu.

Kini, isu cadangan pembinaan LCCT sudah pun berakhir dan berilah masa serta ruang kepada MAHB dan AirAsia untuk berbincang dalam keadaan yang tenang.

MAHB mahupun AirAsia perlu menolak tepi kemelut lampau dan memandang ke hadapan kerana pembinaan LCCT baru itu nanti bakal mencerminkan hala tuju industri penerbangan negara.

Apa pun bentuk penyelesaian yang akan dibuat, diharap perbincangan antara kedua-dua pihak dilaksanakan secara profesional supaya pembinaan LCCT baru kelak tidak akan mengundang sebarang isu lagi seperti LCCT sedia ada.

Pendekatan itu penting kerana AirAsia mempunyai sasaran untuk menjadi syarikat penerbangan murah terbesar di rantau Asia dalam tempoh tiga tahun lagi.

MAHB juga pasti tidak mahu menghampakan AirAsia apatah lagi pengendali lapangan terbang itu mempunyai reputasi baik dan nama yang cukup gah di peringkat antarabangsa.

Semoga, pembinaan LCCT baru yang sedang dirancangkan bersama memberi lembaran baru bagi MAHB dan AirAsia dalam memantap hala tuju dan falsafah perniagaan untuk melangkah ke hadapan.

nazrey

March 10th, 2009, 03:25 PM

Sime Darby pulls out of Labu LCCT
by Yong Yen Nie
Tuesday, 10 March 2009 15:55
THEEDGEDAILY

KUALA LUMPUR: Sime Darby Bhd has officially withdrawn its proposal to build a low cost carrier terminal (LCCT) in Labu, said the Economic Planning Unit (EPU).

Deputy Minister in the Prime Minister's Department S.K. Devamany said on March 10 the group had officially pulled out from proposing to construct an LCCT as Sime Darby would not invest in providing connectivity roads to the proposed LCCT site.

“The government had approved of the plan in principle. However, the government’s final decision also depends on whether or not Sime Darby meets other conditions, including investing RM800 million to build connective roads and rails from the airport to the city centre.

“Since Sime Darby has withdrawn from building the LCCT and is not planning to invest in constructing the connective roads, but only plans to sell the parcel of land in Labu, the government has rejected Sime Darby’s proposal as it does not meet the conditions set,” he said in reply to questions by Wee Choo Keong (Wangsa Maju-PKR) and Azmin Ali (Gombak-PKR) in Parliament.

OshHisham

March 10th, 2009, 05:07 PM

RM2billion sajer ke...? ;)

-------------------------------------------------

Package: Positive Reaction From Govt, Opposition MPS

KUALA LUMPUR, March 10 (Bernama) -- Members of Parliament from both sides of the bench today reacted positively to the second stimulus package tabled by Deputy Prime Minister Datuk Seri Najib Tun Razak, saying the mini budget was a timely move to help the people tide over the global economic gloom.

They said that the package would also enable industries to move ahead on various fronts and not to be encumbered by the slowdown.

Even the creative industry would benefit from the package, Information Minister Datuk Ahmad Shabery Cheek said.

He said the RM20 million allocation for Radio Television Malaysia (RTM) proved that the creative industry was equally important to spur growth.

"The allocation will be used to create content in the music industry, with RTM launching a new 24-hour 'Muzik Aktif' channel over Channel 180 on Astro on Thursday," he told reporters at parliament lobby.

He said that RTM would take appropriate action to implement the project to encourage quality content from players in the creative industry.

Transport Minister Datuk Seri Ong Tee Keat said the construction of new low-cost terminal showed that the government was committed to enhancing competitiveness in the country's aviation industry.

He said the government had identified RM5 billion investment, which would be implemented "off-budget", including a low-cost carrier terminal project and expansion of Penang airport, at the cost of RM2 billion and RM250 million respectively.

Education Minister Datuk Seri Hishammuddin Tun Hussein said he was grateful that the package still managed to give priority to education despite the economic slowdown.

"Dilapidated schools would be given attention, as well as schools in rural areas," he said.

Health Minister Datuk Seri Dr Liow Tiong Lai thanked the government for allowing the contract employment of some 1,000 health assistants in local authorities in a move to stamp out infectious diseases such as dengue.

Higher Education Minister Datuk Seri Mohamed Khaled Nordin said the proposal to increase the number of scholarships for entry into local private universities would enable more students to pursue higher education.

Agriculture and Agro-based Industry Minister Datuk Mustapa Mohamad said the package would help reduce the burden borne by farmers, fishermen and livestock breeders.

Rural and Regional Development Minister Tan Sri Muhammad Muhamad Taib said the huge allocation for rural development would be welcomed by the people especially those in Sabah and Sarawak.

PAS Youth chief Salahuddin Ayub said he hoped that the training and job opportunities announced in the package would be realised to address workers' retrenchment.

DAP secretary-general Lim Guan Eng said he did not expect Najib to announce a big amount.

"This is not just RM10 billion (as reported). I've said previously that there should be an additional allocation of RM30 billion.

"It turns out that the amount announced by Datuk Seri Najib is RM60 billion for two years," he said.

-- BERNAMA

rizalhakim

March 11th, 2009, 04:38 AM

Labu airport would have seen RM800m investments
Written by Yong Yen Nie
Tuesday, 10 March 2009 23:11

KUALA LUMPUR: Sime Darby Bhd would have invested RM800 million to build road and rail infrastructure if it had gone ahead with the proposed low-cost carrier terminal (LCCT) in Labu, Negri Sembilan, the Dewan Rakyat was told today.

Deputy Minister in the Prime Minister's Department S K Devamany said since the group had officially pulled out from the project, it would not invest in providing connectivity roads to the site.

"The government had approved of the plan in-principle. However, the government's final decision also depended on whether or not Sime Darby meets other conditions, including investing RM800 million to build connective roads and rails from the airport to the city centre.

"Since Sime Darby has withdrawn from building the LCCT and is not planning to invest in constructing the connective roads, but only plans to sell the parcel of land in Labu, the government has rejected Sime Darby's proposal as it does not meet the conditions set," he said in reply to questions by Wee Choo Keong (Wangsa Maju-PKR) and Azmin Ali (Gombak-PKR).

In that respect, Devamany said Malaysia Airports Holdings Bhd (MAHB) would handle the construction of the new LCCT and was currently in discussions with AirAsia Bhd.

Meanwhile, Devamany was confronted by several members of parliament from Sabah and Sarawak on the development corridors in the two states as they claimed that there had been no progress at these corridors.

Kinabatangan MP Bung Moktar Radin said there seemed to be no commitment by the Economic Planning Unit (EPU) in developing Sabah and Sarawak. "If you claim the multiplier effects have yet to be felt, when then will these multiplier effects be truly felt?"

Likening the difference between Peninsular Malaysia and Sabah and Sarawak to "the sky and the earth", he said if development were not seen in these states, the MPs would be "swept off their seats" in the next general election.

Bung Moktar further claimed that the RM1 billion allocation for the Sabah Development Corridor (SDC) as promised by Prime Minister Datuk Seri Abdullah Ahmad Badawi was yet to be seen.

Devamany defended the EPU, saying that planning was already underway through the announced packages but some problems were encountered at the state level and hence, a rearrangement of resources was needed.

Datuk Seri Tiong King Sing (Bintulu-BN) claimed that the EPU did not make sufficient field research on whether the projects were urgent before executing them.

"What is needed in rural areas are clean water and electricity, but I don't see EPU paying attention to them. Why didn't the EPU approve and execute all projects that revolve around the upgrading or providing of basic necessities first? EPU tak ada otak ke?" (EPU has no brains?)" he asked.

Several other MPs then began to rise for further questions, which caused some commotion in the assembly but they were ordered by Speaker Tan Sri Pandikar Amin to sit down.

Devamany said the development corridors, with the exception of Iskandar Malaysia, only started at end-2008, after the mid-term review of the Ninth Malaysia Plan (9MP). "We will see more pronounced progress of these development corridors this year."

He added that out of the RM2.37 billion allocated to SDC, RM559 million had been channelled to the Sabah state government. Another RM1.37 billion will be channelled to the state government every three months, according to the development phases.

"As for SCORE, the federal government has allocated RM2.5 billion to execute nine projects under the mid-term review of the 9MP. SCORE has received RM444 million since the development corridor was launched," he said.

On another matter, Pokok Sena MP Mahfuz Omar asked about the relevance of the new structure requiring Pakatan Rakyat MPs to refer to parliament coordinators ranked as district officers that were previously nominated by Umno division heads for project approvals.

However, Batu Pahat MP Puad Zarkashi said the new structure was not a form of double standards as the coordinators were there to ensure that the existing projects under the previous state government were completed.