Malaysia Airports to proceed with LCCT plan

Malaysia Airports to proceed with LCCT plan
By Presenna Nambiar
Published: 2009/01/06

The airports operator says the permanent low-cost carrier terminal could be built at a reasonable cost due to the availability of existing infrastructure

MALAYSIA Airports Holdings Bhd (MAHB) (5014) will go ahead with its plan to build a permanent low-cost carrier terminal (LCCT) under the National Airport Master Plan, which maps out the development of all the airports in the country except Senai Airport, which is privately owned."Pending the government's approval, the first phase of this project could be ready by the end of 2011 and could be built at a reasonable cost due to the availability of existing infrastructure," MAHB said in a statement released to Bursa Malaysia yesterday.

The master plan was initiated to set the direction for the future development of airports and the aviation infrastructure in the country.The study, which started in July 2007, was recently completed and was formulated with feedback from all government agencies, Malaysia Airlines, AirAsia and representatives from all foreign airlines.

The study needs the endorsement of the government to be implemented.The site for the permanent LCCT is believed to be near Runway 2 of the airport.MAHB said due to its restructuring plan being recently approved by the government, it was now in a position to self-fund the development of the LCCT, something it had done before.Under the plan, the existing Express Rail Link would be extended for another 1.5km to connect the new LCCT to the existing main terminal.The LCCT would be built via a multi-modular design, with each module able to handle 15 million passengers.

MAHB also addressed issues highlighted by various parties regarding its working relationship with AirAsia and the congestion of the current LCCT.MAHB said AirAsia had been given a five-year waiver of all aeronautical charges, excluding passenger service charge, at all airports run by MAHB, when it moved out of Subang in 2002 to KLIA.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. MAHB said while it was not able to accommodate the budget carrier's request for an extension of the waiver once it expired in 2007, a new scheme, which will provide waivers for landing charges and incentives for growth, would be announced with the approval of its restructuring plan.