AirAsia to have own airport

AirAsia announces plans for own airport outside Malaysian capital KUALA LUMPUR - BUDGET carrier AirAsia said on Thursday it will shift to its own US$460 million (S$681.4 million) airport outside Kuala Lumpur, and abandon its overcrowded terminal next to the main international airport.

The move has thrown into doubt the national airport operator's plans to build a new Low Cost Carrier Terminal next to Kuala Lumpur International Airport (KLIA), to replace the existing facility that opened in 2006.

'We believe in lowering our business costs, it is the key to our success,' AirAsia founder Tony Fernandes told a press conference.

'The new airport which will be known as KLIA East will provide more capacity for aircraft and passengers, and enable us to bring down fares,' he said, adding that costs could be lowered by 30 per cent.

Mr Fernandes rejected criticism that KLIA has more than enough capacity to handle AirAsia's growth plans, and that the sprawling city has no need for what would be its fourth airport.

'I think we know what we need, we are not silly,' he said. 'There is nothing here (at the old terminal) to add value to our passengers. Allow us to take our destiny in our own hands.' Mr Fernandes said the new airport would be exclusively for AirAsia, and designed to handle up to 30 million passengers annually. Construction could begin within six months with a completion date of March 2011.

The new airport would be linked by new train and road links, and be about 30 minutes' drive from the city centre - less than the journey to KLIA.

Malaysian conglomerate Sime Darby had said it has won government approval to begin the project, which is to be the centrepiece of its new development at Labu in Negri Sembilan state.

'We have a fantastic partner, it will enhance tourism. We will also have a theme park, it will be like Orlando airport where Disneyland is located,' Mr Fernandes said.

AirAsia has dramatically outgrown its rough-and-ready terminal adjoining KLIA, which has no rail links with the city or the main airport, and has become increasingly crowded and unpleasant for passengers.

The terminal was completed in just nine months, with a capacity for 10 million passengers and a provision for expansion to 15 million passengers.

The expansion of the current low-cost terminal is due to be completed by March, but by then AirAsia will already have exceeded its enlarged capacity with some 15.7 million passengers a year.