KLIA:2 'new' LCCTs approved

[Ijud]

The Star: 21st. Sept. 2004

SEPANG: A new satellite building at the KL International Airport will be operational before the airport reaches its capacity in three years time.

Transport Minister Datuk Seri Chan Kong Choy said KLIA would reach its capacity of 25 million arrivals in “two to three years.”

“We have started planning to expand the capacity of KLIA by building a new satellite building to the structure.

“The current number of passenger arrivals is expected to reach 19.5 million this year, so in two to three years, KLIA would have reached its capacity,” he said.

Chan earlier performed the ground-breaking ceremony for AirAsia's Simulator Complex here yesterday.

On another matter, Chan said any decision to turn the Sultan Abdul Aziz Shah Airport in Subang into a hub for low-fare air travel would be based on national interest.

“It is a major decision and we are looking at various aspects like convenience to the public, cost of operating low-cost airlines and connectivity,” he said.

Earlier, Chan said the complex was a boost to the country’s aviation industry and could serve as a training ground for pilots in the region.

He said the Government also welcomed the alliance between AirAsia and CAE, a leading training solutions provider on advance simulation and control technology, as it could propel the country into the forefront of pilot training.

[Ijud]

The Star: 28th. Sept. 2004

MALAYSIA Airports Holdings Bhd (MAHB) launched the KLIA e-timetable in Madrid on Sunday evening, the first airport in Asia to offer air travellers such a facility.

The e-timetable, accessible at www.klia.com.my, will enable people to plan their air travel into and out of, or via, Kuala Lumpur; and to ensure seamless connections to almost any destination in the world.

It offers details on 69,384 flights, 523 airports, and 42 carriers; and linkages to specific airlines so travellers can book flights online.

MAHB managing director Datuk Bashir Ahmad said the launch was “another step by MAHB towards improving its services to its customers besides promoting Malaysia as a good travel destination.’’

The launch was held in conjunction with the three-day 10th World Routes Development Forum which opened in Madrid on Sunday.

While most e-timetables can be downloaded onto laptops or desktop computers, the KLIA e-timetable is unique in that it can also be downloaded to personal digital assistants and pocket PCs. The file does not require a large memory space, and many users can log on at any one time.

Bashir declined to disclose how much it cost MAHB to provide the facility.

“It is a question of whether we want to do it or not. What we are offering is a facility that allows travellers to plan in advance, and make informed decisions based on the itineraries they can access at their fingertips,’’ he said.

The e-timetable is the first step. MAHB is also looking at partnerships with hotels and Express Rail Link to include hotel accommodation and rail passes.

Steve Brown, the key account manager of Innovata, the company commissioned by MAHB to maintain the website, said: “This is the best technology produced so far for airports.’’

Innovata also manages e-timetable websites for seven airports in Britain including Heathrow and Gatwick, about 20 airports in the US, and the airports in Bahrain, and Hamburg.

Meanwhile, the organisers of the forum have decided that Routes will be held out of Europe in either 2006 or 2007.

“Our strategy is to move the forum once every three years to Asia or the US,’’ said managing director Mike Howarth

MAHB was keen on the forum to be held in Malaysia, Bashir said. “We would be happy to support it.’’

At this year’s event, some 1,200 delegates representing airports and airlines are expected to hold 11,000 meetings. This year also sees representation from the US and China in attendance for the first time.

[Ijud]

The Star: 8th October 2004

MALAYSIA Airline (MAS) will convert two new 747 passenger planes made by Boeing Co into cargo freighters by 2007 to boost profit as trade volume in key markets like China increase.

The two 747s are among 25 planes worth US$4bil bought in 1996 from Boeing under the carrier’s five-year expansion plan, managing director Datuk Ahmad Fuaad Dahlan said.

Delivery was postponed due to the Asian financial crisis. “A lot of airlines have seen the wisdom of improving their freighter service and we are one of them,” Fuaad said in a televised interview in Kuala Lumpur. “We see cargo growth in the near future.”

The airline leased three B747-200 freighters in the year-ended March, bringing its total number of cargo carriers to eight. That helped the cargo operations earn RM96.5mil profit, 18% more than last year. Sales from cargo gained 17% to RM2bil.

MAS carried 10% more cargo in 2004, twice as much as the industry’s average, Fuaad said.

Cargo operations helped cushion the blow on Asian carriers after the outbreak of Severe Acute Respiratory Syndrome forced travellers to stay at home, forcing carriers to cut back capacity by 45% in Hong Kong, 35% in Singapore and 8% in Malaysia. – Bloomberg

[Ijud]

The Star: 29th. November 2004

MALAYSIA Airports Holdings Bhd (MAHB) and its Indian joint-venture partner, the DLF group, have been shortlisted for New Delhi airport’s privatisation project, said MAHB’s senior manager (technical research & planning) in the technical services division, Abdul Nasir Abdul Razak.

“We have not been informed in black and white yet (but we have the) verbal confirmation,” he said, adding that official announcement could come “anytime now.”

MAHB and DLF have jointly bid to redevelop and operate New Delhi’s Indira Gandhi International Airport, he told Bernama at the opening of the Air Cargo Agents Association of India’s 32nd Convention in Kuala Lumpur on Friday.

“MAHB is expected to take an equity stake of between 10% and 15% in the project, which needs an initial investment of RM5bil,” said Abdul Nasir.

MAHB, he said, was very keen on expanding its overseas investments and operations, especially in India.

“We are also interested in Chennai Airport,” he said.

Currently, MAHB is participating in Hyderabad's new airport project. The Hyderabad Airport project is a joint venture between the Andhra Pradesh state government and the Airports Authority of India, with each holding 12% equity. The balance of 74% is held by a private consortium led by GMR Group and MAHB.

The total cost of the project is US$260mil (RM988mil) and it is located some 20km from the Hyderabad city centre. The new airport is due for completion in 2007. – Bernama

[Ijud]

The Star: 3rd. December 2004

Route to KLIA overwhelmed by advertisement hoardings

KUALA LUMPUR: A battle of billboards is raging along the highway to the KL International Airport (KLIA) and billboard companies want rules to stop the boards from blocking each other.

“The number of billboards there is an eyesore,” said Kurnia Outdoor Sdn Bhd marketing director Alex Yew.

“In the stretch from Subang Jaya to KLIA, there are over 80 unipoles, and I believe there is nowhere in the world where there is such a high density in one area,” added Yew.

More than an eyesore though is the practice of “blocking” by rogue outdoor business companies.

“There is an unwritten ethical agreement that we (billboard owners) do not block each other, that we be about 200 to 300 metres away from each other,” said Spectrum Outdoor Sdn Bhd director Henry Lau.

Apart from other outdoor companies, private landowners along the highway are also affected as companies often build billboards on private land and the “blocking” practice has brought the value of the land down.

“When highway builders acquired this land, these landowners were paid little for it, so we went in and offered good rental, rental good enough to sustain them.

“The landowners lose this income, as we have to look for somewhere else to put up our billboards. We may lose some money, but we are not the biggest losers, the landlords are,” said Lau.

These grouses have not fallen on deaf ears.

The Sepang District Council (MDS) has warned advertising companies that have put up illegal billboards to apply for permits by Jan 15 or risk having them torn down.

It’s public relations officer Zelda Mohd Zamri said the council had held a meeting with the relevant companies last week to voice its unhappiness over illegal billboards.

“We have told the companies to apply for permits before Jan 15 or we will be forced to tear them down,” she said.

The council’s enforcement unit was currently running a check on the billboards, she said.

Zelda said if the companies did not have permits it also meant that they had failed to pay advertising fees to the council.

The council charges RM5,000 for a 12-month term for billboards, RM20,000 for unipoles and RM10,000 for advertisements placed on parapets along bridges.

[Ijud]

The Star:11th. December 2004

BY B.K. SIDHU

ROLLS-Royce Trent 900 engines will power the six Malaysia Airlines (MAS) A380 super jumbo aircraft that will take to the skies beginning 2007.

However, MAS and its parent, Penerbangan Malaysia Bhd (PMB), announcing this in a joint statement yesterday, did not disclose how much the engines cost.

But earlier reports suggest as much as US$170mil (RM646bil) for 12 engines, two for each aircraft.

PMB is buying the A380 from Airbus for a reported US$1.6bil. The first delivery is expected in early 2007. The aircraft will be leased to MAS.

The Trent 900 will enter service by the middle of next year, beginning with Singapore Airlines. Other airlines that have chosen this power unit are Qantas, Virgin Atlantic and Lufthansa.

According to the Rolls-Royce website, the fourth-generation Trent engine received its airworthiness certification on schedule in early November, less than 20 months after its first run.

The Rolls-Royce group won the bid over rivals Engine Alliance, which is made up of Pratt & Whitney, a unit of United Technologies Corp, and General Electric Co.

The A380 is a 555-seat aircraft that uses leading edge technology and is said to have 15% to 20% lower operating costs per seat kilometre and give 10% to 15% more range than the largest jets flying today.

With a full upper deck, 49% additional cabin space and around 35% more seats compared with existing offerings, the A380 is expected to raise the benchmark for customer experience and comfort in the future.

When the A380 eventually takes to the skies next year, it will be the biggest jet in the world.

On Thursday, Rolls-Royce announced that it is opening a regional office in Malaysia, to be headed by Arnaud Ayral.

[Ijud]

The Star: 19th. January 2005

BY B.K. SIDHU

MALAYSIA Airports Holdings Bhd (MAHB) has forecast passenger volume at KL International Airport (KLIA) to grow by 7% to 22.5 million this year and to hit 25 million next year, improving on the record 21 million achieved in 2004.

The airport operator is also in advanced talks with the Government to restructure the RM856mil that it owes in concession payments. A resolution will help the airport operator.

MAHB managing director Datuk Bashir Ahmad told a media briefing at KLIA yesterday that the company was not able to make payments to the Government as its earnings had been affected by several factors, such as the 1997/98 Asian financial crisis, the Sept 11 2001 (911) incident, and the 2004 SARS outbreak that badly affected the global aviation industry.

“Although we would like a decision to be made soon on the financial restructuring, it is important that we do the restructuring right and make it viable in the long term. That is why (the restructure) is taking some time,’’ he said.

The RM856mil is part of the RM1.3bil that MAHB was to pay the Government as part of the concession payment.

The financial restructuring was also intended to put targets set for the KLIA back on track. KLIA could have hit 25 million by 2003 as per its original master plan if not for 911, SARS and the financial crisis.

Nonetheless, KLIA has recorded a remarkable growth rate of 20% in passenger numbers to 21 million in 2004 from 17.5 million in 2003. This is the highest growth rate ever achieved by KLIA. The highest monthly volume was recorded in December.

“We are pleased the traffic figures have gone up. Barring any unforeseen circumstances we should achieve 25 million passengers by 2006,’’ Bashir said.

MAHB operates 39 airports in the country – five are international, 16 domestic and 18 STOLports, or short takeoff and landing airports.

Bashir said passenger volume at all 39 airports grew 17.5% to 39.3 million. He expects a further 6% growth to 40.5 million this year.

Five new airlines flew into KLIA last year, while Lufthansa German Airlines returned in March. The five were Indonesia’s Jatayu Airlines and Riau Airlines, Star Air, Hainan Airlines (charter flights only) and United Parcel Services (cargo only). Now 46 airlines operate from KLIA.

Yesterday, Shenzhen Airlines was the first new carrier to fly into KLIA this year. KLIA is also Shenzen Airlines' first international destination.

Bashir expects another one or two new airlines to fly into KLIA this year. He declined to give details although two private airlines from India – Jet Airways and Air Sahara – have expressed interest.

Although KLIA has a reasonable mix of airlines from various countries, Bashir feels what is still missing is Australian and European carriers. That is why MAHB is continuing in its efforts to woo European and Australian airlines to fly into KLIA, including Qantas and British Airways, which withdrew their services from KLIA several years ago.

Besides attracting new airlines, Bashir said, with the coming summer schedule, many existing airlines would increase frequencies, and this bode well in terms of passenger volume and revenues for MAHB.

But Bashir declined to say how much the company had made last year, merely saying it “would be better than in 2003’’.

Increasing non-aeronautical revenue (commercial) is on the cards, and there are plans to revamp the retail business. This is to take advantage of the tenancies that are due to expire in June.

“We are looking at a 50:50 contribution from commercial and aeronautical income by 2008,’’ Bashir said.

Asked on the status of MAHB’s proposal to the Government to increase airport taxes, he said it was still with the Government. But he clarified that it was not linked to the financial restructuring.

“Asking for a raise is a normal process, and we believe it is an appropriate time for the Government to review the charges,’’ Bashir said.

[Ijud]

The Star: 19th. January 2005

BY B.K. SIDHU

WHILE Singapore has awarded contracts this week for the construction of a new low-cost carrier (LCC) terminal with completion expected in early 2006, Malaysia has yet to decide on the location for a similar hub, although it is keen to have it either at Subang or KL International Airport (KLIA).

Whatever the decision, Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Bashir Ahmad is confident that a LCC hub can be developed quickly.

“We can do it very fast ... it should not take long to build as it would be simple in structure,’’ Bashir told a media briefing at KLIA yesterday.

Building a LCC terminal is one of the many projects planned by MAHB for this year. The others include the planning and eventual construction of a second satellite building at KLIA to handle up to 10 million passengers. Work on this project should begin this year and be completed by 2008.

The A380 super jumbos ordered for Malaysia Airlines (MAS) are expected to take to the skies soon and making preparations for their take-off and landing at KLIA is also part of MAHB's plans.

Bashir also spoke of the need to upgrade the gate allocation and check-in systems at KLIA, buy two additional coaches for the Aerotrain and construct a spur line for it.

Additionally, MAHB intends to revamp its retail business and employ more security and fire rescue personnel. It would also look into the upgrading of local airports. Several projects in this regard are already under way, such as the redevelopment and upgrading works at the Kuantan, Alor Setar, Penang, Sibu and Kuala Terengganu airports.

“These are some of the projects we will undertake as part of our efforts to improve our services to passengers and airlines,’’ Bashir said.

Indeed, KLIA won several awards last year and was ranked the world’s third best airport in terms of customer satisfaction in a survey by AETRA. But MAHB is not resting on its laurels. As Bashir was quick to point out yesterday, “there is still plenty of room for improvement and we have to continue to work hard.’’

Bashir said passenger traffic through KLIA was expected to hit 25 million next year and if the LCC hub was in place by then, it would help ease some of the congestion that may be experienced before a second satellite building was completed.

He also said that given its wide experience locally, MAHB would continue to look for opportunities to manage airports abroad. It has already received four requests from parties in Asia, the Middle East and Africa to operate airports for them.

[Ijud]

BY B.K. SIDHU

MALAYSIA Airports Holdings Bhd (MAHB) will next month introduce an enhanced KLIA e-timetable to provide a wider choice of itineraries of all flights to and from the KL International Airport (KLIA).

KLIA is the first airport in Asia to have the e-timetable service that was launched in September.

The airport operator was also working towards creating e-timetables for the Penang and Kota Kinabalu airports by the second half of this year, said marketing senior manager Mohamed Sallauddin Mat Sah at a briefing in Subang on Monday.

“Our intention is to improve on our existing offering and replicate it to other airports in the country,” he added.

He said that since the e-timetable was launched, response had been “remarkable with hits peaking at 7,403 in September”. “On average, we had 6,611 hits per month over the past three months,” he said.

The facility allows for downloads of the itineraries and the highest downloads recorded was 825 in September.

“This facility assists air travellers in planning their flights ahead as they no longer have to depend on travel agents to plan their air travel,” Sallauddin said.

The air itineraries are for a year in advance and the e-timetable provides linkages to the respective airlines if air travellers want to purchase tickets online. Currently, it provides point-to-point services, single or double connections of one particular airline, but the enhancement would provide wider choices of airlines plying the point-to-point, single or double connections.

Declining to reveal the cost for the enhancement, Sallauddin said it was a service that MAHB provided for the ease of its passengers.

After the enhancement, users would be able to check for one-way flights instead of only return flights.

The e-timetable is accessible at www.klia.com.my.

[jpatokal]

200 hits per day counts as "remarkable"? My personal home page gets a lot more than that...

That said, the e-timetable is a nifty feature and other airports would do well to copy it. The current Don Muang homepage is pretty horrible, you pretty much have to use Google to find something as basic as realtime arrival/departure info (the reason why 99% of people visit airport home pages, I suspect).

[Ijud]

Originally Posted by jpatokal

200 hits per day counts as "remarkable"? My personal home page gets a lot more than that...

That said, the e-timetable is a nifty feature and other airports would do well to copy it. The current Don Muang homepage is pretty horrible, you pretty much have to use Google to find something as basic as realtime arrival/departure info (the reason why 99% of people visit airport home pages, I suspect).

Haha... I'm not impressed at all with the current KLIA's website... lack of info and not attractive... but the e-timetable and realtime flight info are good additions... but still not impressive!

[jpatokal]

So, as expected, they went for KLIA instead of Subang after all:

KUALA LUMPUR, Malaysia (Reuters) -- Malaysia will this week give the go-ahead to build a dedicated terminal for low-cost carriers at Kuala Lumpur's international airport, in a bid to raise its status as a regional hub rivalling Singapore and Bangkok, officials said.

http://edition.cnn.com/2005/TRAVEL/0...ysia.hub.reut/
http://www.forbes.com/home/feeds/ap/...ap1843127.html

Oh well. At least it's good to see KLIA taking off, 21 million pax last year was a positive surprise.

[Ijud]

The Star: 24th. February 2005

New KLIA terminal for budget airlines

By MERGAWATI ZULFAKAR
PUTRAJAYA: The Government has shot down AirAsia’s proposal to operate from Subang and instead decided to build a new terminal at the KL International Airport in Sepang for low-cost carriers (LCCs).

Transport Minister Datuk Seri Chan Kong Choy said the RM100mil terminal would be operational by the middle of next year and provide basic facilities for LCCs to operate.

“The decision is made as a strategic move to ensure the aviation industry in Malaysia continues to grow, and suits the country’s objective to develop KLIA as a regional aviation hub in the long term.

“The decision was made after the Government had considered the feedback by all stakeholders in the aviation industry, including the Department of Civil Aviation, Malaysia Airports Holdings Bhd, Penerbangan Malaysia Bhd, Malaysia Airlines, AirAsia and Board of Airlines Representatives,” he told reporters here yesterday.

Chan said the cost of the terminal was low because it would be different from ordinary terminals that catered to full-fare airlines.

“There will be simpler conveyor belts and no aerobridges, but it will be a comfortable terminal.

“We will fast-track the construction of the terminal, which will enable LCCs to have a fast turnaround time of 20 minutes. It can cater to 40 planes and 10 to 12 million passengers. It can also be expanded easily in the future,” he added.

Chan declined to identify the exact location of the terminal but gave the assurance that it would be linked to the main terminal by shuttle buses and other means of transportation.

He also said the terminal would enable all LCCs to achieve cost efficiency.

Asked why the Government decided to build the new terminal, Chan said KLIA had superb infrastructure in place, adding that if a new terminal was built in Subang, it would cost up to RM300mil.

“We also have some other plans for Subang,” he said.

“When we design the new terminal, we will get AirAsia to give input because it will be a major user,” he added.

Chan acknowledged the important role played by AirAsia in the growth of LCC operations and its contribution towards tourism.

“The Government will continue to support AirAsia to be the main LCC in the region, and at the same time the Government will continue to take strategic actions to enable MAS to be a successful global carrier,” he added.

Meanwhile, AirAsia chief executive officer Tony Fernandes said the budget airline would focus its energy on making the new terminal the centre for low-cost travel in Asia.

[Ijud]

The Star: 27th. February 2005

Work on RM110m budget terminal to start in April

SEPANG: The RM110mil terminal for budget airlines at the KL International Airport (KLIA) is expected to be fully operational by next year, Transport Minister Datuk Seri Chan Kong Choy said.

He said the construction of the terminal, which could accommodate some 10 million passengers a year, should start in April as the Government had decided to fast track the project.

The new terminal would be located opposite KLIA’s satellite “A” building because of its strategic location and accessibility, Chan said at a press conference after attending a site visit yesterday.

Malaysia Airports Holdings Bhd (MAB) chief executive officer Datuk Bashir Ahmad said the site, selected out of eight proposed locations, covered some 15ha and the size of the new terminal would be 28,000sq metres, slightly larger than the terminal in Penang.

“The site has existing bays that can take up to 20 to 23 aircraft, but we will extend the apron to accommodate 30 aircraft,” he said.

He said all aircraft, including the A320 airbus, would be able to use the terminal, adding that about 1,700 car parks were planned for the terminal.

Chan said the ministry would also make arrangements for public transport to provide services to passengers.

They would include bus services from the KTM Komuter’s station in Pasir Salak and the ERL Transit station in Salak Tinggi would be made available to the new terminal, he added.

AirAsia chief executive officer Tony Fernandes, who was also present, said the airline was pleased with the support from the ministry and MAB, especially with the decision to speed up the project.

He added that AirAsia's operating cost at the new terminal could be 30% less, which was the same estimate if the airline were to operate from Subang.

[Ijud]

The Star: 8th. March 2005
BY B.K. SIDHU

A SECOND satellite terminal building is to go up at the KL International Airport (KLIA), and be operational by 2008, to cater to the growing traffic in air travel.

KLIA operator Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Bashir Ahmad said work would start soon, or by next year. Given its experience in building the main terminal, MAHB is confident that it could put up the terminal in two-and-a-half to three years.

The second satellite building is in addition to the previously announced RM100mil hub at KLIA for low-cost carriers (LCC) to meet the growing budget air travel business in the region.

Bashir, speaking to reporters after the opening of the third New Route Asia 2005 forum in Kuala Lumpur yesterday, said the finer details had yet to be firmed up. But the second terminal is expected to cost about RM4bil.

“We are in talks with the Government on the funds for the building and on our financial restructuring. We want to get (the financial restructuring) right so as to make MAHB viable,” he said.

MAHB is in advanced talks with the Government to restructure the RM856mil that it owes in concession payments, which total RM1.3bil.

Going by original plans, the second terminal was to have been operational last year, but the 1997-98 Asian financial crisis, the Sept 11, 2001, terrorist attacks on the United States, and the SARS outbreak that threw the global aviation industry into turmoil, put paid to such hopes.

However, air travel has since picked up, with the International Air Transport Association (IATA) forecasting average global growth in air travel of 6% up to 2008.

KLIA is nearing its capacity of 25 million passengers a year, thus the need for the new terminal.

Last year, KLIA handled 21.1 million passengers. This year it expects a 7% growth to 22.5 million. Next year, the forecast is 25 million. A total of 46 airlines, carrying both passenger and cargo, operate from KLIA currently.

Malaysia is not the only country planning additional facilities. Singapore is spending US$1.75bil to add a third terminal at Changi while Thailand is building a new airport in Bangkok, which is expected to open early next year.

To a question, Bashir said that there had been no request yet from other budget carriers (apart from AirAsia), or even Malaysia Airlines, to operate some flights from the LCC terminal.

“The LCC hub is for LCC airlines, and if traditional airlines want to use it they have to justify (the need to do so),’’ he said.

KLIA is also being upgraded to cater to the A380. There would be five gates at the main and second terminal building to cater to the super jumbo.

Asked about efforts to improve the baggage system at the main terminal, Bashir said: “We are trying to find a solution that will resolve all the baggage problems we have had. The Government is very serious about it.’’

Bashir also felt there was a need to upgrade the Kuala Terengganu and Kota Kinabalu airports. Upgrading works at Kuching airport are in progress.

The New Route Asia forum, which Malaysia is hosting for the third time, brought together 300 delegates representing the region's airlines and airports to discuss future market opportunities.