ID :
39744
Fri, 01/09/2009 - 19:21
Auther :
Shortlink :
https://oananews.org//node/39744
The shortlink copeid
LABU LCCT TERMINAL TO ACCOMMODATE AIRASIA`S RISING CAPACITY
SEPANG (Malaysia), Jan 9 (Bernama) -- KLIA East, the proposed new low cost
carrier terminal at Labu in Negeri Sembilan, will sustain AirAsia's exponential
growth as opposed to the LCCT at KLIA from where it is operating now.
Otherwise, if it sticks to the LCCT at Sepang, AirAsia claims it would go
bust, its chief executive officer, Tony Fernandes, said Thursday.
This is because the new airport, to be ready by March 2011, would be able to
increase passenger capacity by up to 50 million passengers per annum,
especially with its planned seamless connectivity, he said.
In contrast, he explained that although the current expansion plans for the
existing LCCT at Sepang would increase capacity to 15 million passengers this
year, no further expansion was possible due to its size constraints.
"In two years' time, this airline will go bust if we do not have the
facility. If we don't move by 2010, we will lose almost a million passengers
and about four million passengers by 2011," he told a press conference here.
After the press conference, Fernandes took the media for a tour of the
proposed site which is located at a plantation owned by Sime Darby Bhd, with
which the budget airline would develop the airport.
He said the development structure of the RM1.6 billion airport was yet to be
known although there were various ways to reduce the estimated cost.
"At the very worst, AirAsia will undertake the project. In a best case
scenario, a third party will probably own the asset."
"We do not see any issue in financing," he said.
He said AirAsia was also in talks with infrastructure funding institutions
should it need to undertake the project on its own.
"We are prepared for any eventuality, but KLIA East is defintely on. If
Sime Darby doesn't want to build it, we're already talking to funding
partners," he said.
Asked if they would consider approaching airport operator Malaysia Airports
Holdings Bhd to jointly undertake the project, he said: "So long, as it makes
commercial sense."
Expanding on the capacity constraints, Fernandes said it was imperative for
AirAsia and AirAsia X, its international arm, to have the new facility by 2011
as the current LCCT was only built for 10 million passengers but the number of
passengers had crossed the 11 million mark.
"Even with the extension, we are still short of two parking bays," he said.
Fernandes said it was estimated that by 2013, the combined annual traffic
flown by both AirAsia and AirAsiaX would be 60 million passengers per annum,
more than SIA and Thai combined.
By then, AirAsia would have 159 narrowbody aircraft and AirAsiaX 25
widebody aircraft, leading to a combined total of 184 aircraft versus Malaysia
Airlines' estimated fleet of 125 aircraft.
"By 2013, only Japan Airlines would be bigger than us in terms of
passengers. We could be the second biggest airline in Asia by 2030," he said.
It would take about the same time to travel from KLIA East to the main
terminal at KLIA, as from the current LCCT at Sepang.
He said connectivity was also encouraging for KLIA East with the primary
access being the PLUS KL-Seremban Highway, the connecting road to Sepang F1
circuit and KLIA.
He also said connections to the proposed West Coast Highway and
Putrajaya-KLIA-Senawang Highway could be achieved with a new connector road.
There could also be potentially two train lines -- one served by
the KTM Komuter (Rawang-Seremban line), for which AirAsia was in discussions
with KTM to upgrade the Labu station as a rail hub, while the other was to have
an inter-city train such as KL-Singapore, KL-Thailand and KL-East Coast.
He said the extension of the Express Rail Link (ERL) was also possible with
additional investments.
Fernandes explained that new aiport would complement Kuala Lumpur further as
a travelling hub.
He said the airport was mainly a place where people pass through while the
airlines are the ones that build hubs through connectivity of routes and flight
frequencies.
"It is no different from London as a hub with its five airports. As long as
there is good connectivity between the airports, it's all good," he said.
In difficult times like these when nobody wants to invest, he said the
project would create more jobs and economic value.
"With Sime Darby's Vission Valley, we are going to be a hub for Asean," he
said.
He said KLIA East was an integral part of Sime Darby's plan for
its Negeri Sembilan Vision City (NSVC), which in turn is an integral part of its
Central Vision Valley property development project spanning Selangor and Negeri
Sembilan.
-- BERNAMA
carrier terminal at Labu in Negeri Sembilan, will sustain AirAsia's exponential
growth as opposed to the LCCT at KLIA from where it is operating now.
Otherwise, if it sticks to the LCCT at Sepang, AirAsia claims it would go
bust, its chief executive officer, Tony Fernandes, said Thursday.
This is because the new airport, to be ready by March 2011, would be able to
increase passenger capacity by up to 50 million passengers per annum,
especially with its planned seamless connectivity, he said.
In contrast, he explained that although the current expansion plans for the
existing LCCT at Sepang would increase capacity to 15 million passengers this
year, no further expansion was possible due to its size constraints.
"In two years' time, this airline will go bust if we do not have the
facility. If we don't move by 2010, we will lose almost a million passengers
and about four million passengers by 2011," he told a press conference here.
After the press conference, Fernandes took the media for a tour of the
proposed site which is located at a plantation owned by Sime Darby Bhd, with
which the budget airline would develop the airport.
He said the development structure of the RM1.6 billion airport was yet to be
known although there were various ways to reduce the estimated cost.
"At the very worst, AirAsia will undertake the project. In a best case
scenario, a third party will probably own the asset."
"We do not see any issue in financing," he said.
He said AirAsia was also in talks with infrastructure funding institutions
should it need to undertake the project on its own.
"We are prepared for any eventuality, but KLIA East is defintely on. If
Sime Darby doesn't want to build it, we're already talking to funding
partners," he said.
Asked if they would consider approaching airport operator Malaysia Airports
Holdings Bhd to jointly undertake the project, he said: "So long, as it makes
commercial sense."
Expanding on the capacity constraints, Fernandes said it was imperative for
AirAsia and AirAsia X, its international arm, to have the new facility by 2011
as the current LCCT was only built for 10 million passengers but the number of
passengers had crossed the 11 million mark.
"Even with the extension, we are still short of two parking bays," he said.
Fernandes said it was estimated that by 2013, the combined annual traffic
flown by both AirAsia and AirAsiaX would be 60 million passengers per annum,
more than SIA and Thai combined.
By then, AirAsia would have 159 narrowbody aircraft and AirAsiaX 25
widebody aircraft, leading to a combined total of 184 aircraft versus Malaysia
Airlines' estimated fleet of 125 aircraft.
"By 2013, only Japan Airlines would be bigger than us in terms of
passengers. We could be the second biggest airline in Asia by 2030," he said.
It would take about the same time to travel from KLIA East to the main
terminal at KLIA, as from the current LCCT at Sepang.
He said connectivity was also encouraging for KLIA East with the primary
access being the PLUS KL-Seremban Highway, the connecting road to Sepang F1
circuit and KLIA.
He also said connections to the proposed West Coast Highway and
Putrajaya-KLIA-Senawang Highway could be achieved with a new connector road.
There could also be potentially two train lines -- one served by
the KTM Komuter (Rawang-Seremban line), for which AirAsia was in discussions
with KTM to upgrade the Labu station as a rail hub, while the other was to have
an inter-city train such as KL-Singapore, KL-Thailand and KL-East Coast.
He said the extension of the Express Rail Link (ERL) was also possible with
additional investments.
Fernandes explained that new aiport would complement Kuala Lumpur further as
a travelling hub.
He said the airport was mainly a place where people pass through while the
airlines are the ones that build hubs through connectivity of routes and flight
frequencies.
"It is no different from London as a hub with its five airports. As long as
there is good connectivity between the airports, it's all good," he said.
In difficult times like these when nobody wants to invest, he said the
project would create more jobs and economic value.
"With Sime Darby's Vission Valley, we are going to be a hub for Asean," he
said.
He said KLIA East was an integral part of Sime Darby's plan for
its Negeri Sembilan Vision City (NSVC), which in turn is an integral part of its
Central Vision Valley property development project spanning Selangor and Negeri
Sembilan.
-- BERNAMA
