QUOTE
If AirAsia forced out of KKIA's Terminal 2 in June
1 Million less tourists
posted on : 13 February 2011
source : Daily Express
KUALA LUMPUR: Sabah stands to lose a substantial amount in tourism revenue if AirAsia is forced to move its operation from Terminal 2 of the Kota Kinabalu International Airport (KKIA) to the main terminal.
The budget airline's Chief Executive Officer, Datuk Seri Tony Fernandes said the Federal Government through the Ministry of Transport has set a June 1, 2011 deadline for them to shift to Terminal 1.
He said AirAsia wants to continue operating at its present premises due to its plan to turn Kota Kinabalu into an eastern hub for domestic and international flights, including from the United States of America and Australia.
"We have a headache in Kota Kinabalu (KK) with Malaysia Airports that is trying to move us from Terminal 2 to the main terminal...we will not move out.
"I will chain myself and the FRU (Federal Reserve Unit) has to take us, he quipped. "Forcing us to KKIA's main terminal will mean our current airport tax of RM25 per passenger will have to be increased to RM51 because of the aerobridge and other facilities and this will mean more flights will be cancelled.
"Even our Indonesian counterparts are reviewing whether, they should keep the KK-Jakarta route due to this move. In fact, I know Indonesia is coming today (to meet him) and they want to cancel the KK-Jakarta flight soon," he said.
Fernandes said this in a press conference with Sabah and Sarawak media at his office AirAisa's LCCT at Sepang on Friday.
Disclosing AirAsia's expansion plans at Terminal 2, he said it intends to acquire two more aircraft whereby each plane can bring in about 400,000 passengers per year to Sabah which overall would equate to almost one million tourist arrivals.
Presently, he said, AirAsia operates six planes out to Terminal 2 bringing in about 2.4 million tourists to KK.
"Just imagine how the expansion of Terminal 2 would benefit the Sabah tourism industry and boost the State's economy as well.
"Having a total of eight planes including the two proposed planes in the expansion of Terminal 2, he said, is that Terminal 1 does not have enough facilities for Air Asia to commence operations like having sufficient check-in decks.
"We've got six planes and our planes work harder than any other as we do a lot of flights. As you can see, one delay causes a ripple effect because that is how we do low fares. (Flight turnarounds) every 25 minutes.
"We are very against it (move) because Terminal 1 does not have enough facilities for our operation. It looks empty but during peak time, a lot of planes come in...so where are you going to put the planes and there are not enough check-in desks. People do not think about these things," he said.
According to Fernandes, he was made to understand that AirAsia at Terminal 2 is being forced to move out as the Federal Government wants to convert the terminal as a cargo facility.
"They (government) say to me that they need a cargo facility. So move the cargo over to the other side and expand. Which one is giving Sabah more...a little bit more cargo or millions of tourists that we are bringing in?" he asked.
On new routes for KK, Fernandes said there were no plans due to the Government's move to force its operation to shift from Terminal 2.
"My recommendations is to move it (cargo) somewhere else, and let us put another two to three more planes because we have given a plan. There is some land behind Terminal 2 but that is like being disputed for 100 years, you know the land behind...a very complicated case I'm told," he said, adding that the move issue has been hanging over their heads for two years.
Fernandes said he is getting pressure from Sabah. So I spoke to the Chief Minister who responded saying 'No'. He (Chief Minister) said you guys good at what you are doing, do whatever you want, I support it.
"I know that Irene (Sabah Tourism Board General Manager Datuk Irene Charuruks) is causing us problems...but STB has been very good to us, so I don't understand," he said, without elaborating.
1 Million less tourists
posted on : 13 February 2011
source : Daily Express
KUALA LUMPUR: Sabah stands to lose a substantial amount in tourism revenue if AirAsia is forced to move its operation from Terminal 2 of the Kota Kinabalu International Airport (KKIA) to the main terminal.
The budget airline's Chief Executive Officer, Datuk Seri Tony Fernandes said the Federal Government through the Ministry of Transport has set a June 1, 2011 deadline for them to shift to Terminal 1.
He said AirAsia wants to continue operating at its present premises due to its plan to turn Kota Kinabalu into an eastern hub for domestic and international flights, including from the United States of America and Australia.
"We have a headache in Kota Kinabalu (KK) with Malaysia Airports that is trying to move us from Terminal 2 to the main terminal...we will not move out.
"I will chain myself and the FRU (Federal Reserve Unit) has to take us, he quipped. "Forcing us to KKIA's main terminal will mean our current airport tax of RM25 per passenger will have to be increased to RM51 because of the aerobridge and other facilities and this will mean more flights will be cancelled.
"Even our Indonesian counterparts are reviewing whether, they should keep the KK-Jakarta route due to this move. In fact, I know Indonesia is coming today (to meet him) and they want to cancel the KK-Jakarta flight soon," he said.
Fernandes said this in a press conference with Sabah and Sarawak media at his office AirAisa's LCCT at Sepang on Friday.
Disclosing AirAsia's expansion plans at Terminal 2, he said it intends to acquire two more aircraft whereby each plane can bring in about 400,000 passengers per year to Sabah which overall would equate to almost one million tourist arrivals.
Presently, he said, AirAsia operates six planes out to Terminal 2 bringing in about 2.4 million tourists to KK.
"Just imagine how the expansion of Terminal 2 would benefit the Sabah tourism industry and boost the State's economy as well.
"Having a total of eight planes including the two proposed planes in the expansion of Terminal 2, he said, is that Terminal 1 does not have enough facilities for Air Asia to commence operations like having sufficient check-in decks.
"We've got six planes and our planes work harder than any other as we do a lot of flights. As you can see, one delay causes a ripple effect because that is how we do low fares. (Flight turnarounds) every 25 minutes.
"We are very against it (move) because Terminal 1 does not have enough facilities for our operation. It looks empty but during peak time, a lot of planes come in...so where are you going to put the planes and there are not enough check-in desks. People do not think about these things," he said.
According to Fernandes, he was made to understand that AirAsia at Terminal 2 is being forced to move out as the Federal Government wants to convert the terminal as a cargo facility.
"They (government) say to me that they need a cargo facility. So move the cargo over to the other side and expand. Which one is giving Sabah more...a little bit more cargo or millions of tourists that we are bringing in?" he asked.
On new routes for KK, Fernandes said there were no plans due to the Government's move to force its operation to shift from Terminal 2.
"My recommendations is to move it (cargo) somewhere else, and let us put another two to three more planes because we have given a plan. There is some land behind Terminal 2 but that is like being disputed for 100 years, you know the land behind...a very complicated case I'm told," he said, adding that the move issue has been hanging over their heads for two years.
Fernandes said he is getting pressure from Sabah. So I spoke to the Chief Minister who responded saying 'No'. He (Chief Minister) said you guys good at what you are doing, do whatever you want, I support it.
"I know that Irene (Sabah Tourism Board General Manager Datuk Irene Charuruks) is causing us problems...but STB has been very good to us, so I don't understand," he said, without elaborating.
QUOTE
AirAsia boss explains why airline must remain at Terminal 2
13th February, 2011
Source : New Sabah Times
KUALA LUMPUR: AirAsia insists on remaining at the low-cost terminal at Tg Aru and warns that Sabah could see a significant drop in the number of passenger arrivals if the airline is forced to relocate to the new Kota Kinabalu International Airport (KKIA). AirAsia Group Chief Executive Officer Dato Sri Dr Tony Fernandez argued if the government still goes ahead with the plan, the budget airline will be burdened with higher costs and charges which would badly affect its current service to the state economy especially in tourism.
He also claimed that the new KKIA terminal does not have enough facilities to meet with the needs of the airline.
“We are very against it because they don’t have enough facilities on the terminal for us from the start,” he said to reporters from Sabah and Sarawak at AirAsia’s headquarters here on Friday.
“It looks empty but during peak time there are a lot of planes coming in so where are we going to put our planes and there’s not enough check-in desks,” he said.
He added that the move would not only dampen AirAsia’s plans to expand into new routes but also jeopardize its current routes as well.
“Already my Indonesian counterparts are reviewing whether to keep the Jakarta-KK (route),” he said.
According to Fernandez, AirAsia was planning to add two more planes to the current fleet of six in Kota Kinabalu which is estimated to bring in an additional of about 800,000 passengers into the state in one year.
A move to the new terminal would also mean that the Passenger Service Charge (PSC) would cost higher from RM25 to RM51 that would burden passengers, he said.
AirAsia also had plans to use the low-cost terminal in Kota Kinabalu as a major eastern hub to venture into markets in North and South America, Australia, Korea, China and Japan.
But pressure from the Ministry of Transport to move the airline to the new terminal, expected in June this year, has forced AirAsia to put all these plans on hold until a resolution is reached.
With AirAsia moving to KKIA, the plan is to turn the low-cost terminal as a cargo facility which Fernandez described as not a profitable move as there is more money in bringing in passengers.
“KK is now depending on the low cost terminal. My recommendation is to get rid of the cargo and move it somewhere else. We have given a plan. What’s giving Sabah more? A little bit of cargo or millions of tourist that we are bringing?” he said.
At the moment, he said, the ministry and Malaysia Airports Berhad have not responded to the proposal which is putting the current situation into a stalemate.
Earlier, he described Sabah as a home to AirAsia in many ways and that the state government has been giving great support to the airline. He reminisced the early days when the airline had only two planes from which it built its empire. But he urged the government to allow it to grow further and beyond.
“We can do so much more. East Malaysia has so much to offer but the airport charges and the lack of airports, developing them is frustrating us. We are being held back to develop more international flights and it’s beginning to already affect KK,” he said. “Sabah really supported us, brought us to where we are, now we are saying ‘Don’t stop the support. We don’t need the money or anything. Just help us in expanding the LCCT,” he added.
AirAsia in Kota Kinabalu flies to 13 destinations in 6 countries including China, Indonesia, Malaysia, Philippines, Singapore and Taiwan and is estimated to carry around a million tourists into the state.
In December 2010, Transport Minister Datuk Seri Kong Cho Ha said that the ministry had an understanding with AirAsia to relocate airline, as well as other low-cost carriers to the new terminal once the RM1.4 billion upgrade project of the new terminal’s runway and resurfacing work were completed.
But Fernandez is determined to stay put whatever the outcome would be, saying that AirAsia has a proven success story in Sabah and wants to accomplish more.
13th February, 2011
Source : New Sabah Times
KUALA LUMPUR: AirAsia insists on remaining at the low-cost terminal at Tg Aru and warns that Sabah could see a significant drop in the number of passenger arrivals if the airline is forced to relocate to the new Kota Kinabalu International Airport (KKIA). AirAsia Group Chief Executive Officer Dato Sri Dr Tony Fernandez argued if the government still goes ahead with the plan, the budget airline will be burdened with higher costs and charges which would badly affect its current service to the state economy especially in tourism.
He also claimed that the new KKIA terminal does not have enough facilities to meet with the needs of the airline.
“We are very against it because they don’t have enough facilities on the terminal for us from the start,” he said to reporters from Sabah and Sarawak at AirAsia’s headquarters here on Friday.
“It looks empty but during peak time there are a lot of planes coming in so where are we going to put our planes and there’s not enough check-in desks,” he said.
He added that the move would not only dampen AirAsia’s plans to expand into new routes but also jeopardize its current routes as well.
“Already my Indonesian counterparts are reviewing whether to keep the Jakarta-KK (route),” he said.
According to Fernandez, AirAsia was planning to add two more planes to the current fleet of six in Kota Kinabalu which is estimated to bring in an additional of about 800,000 passengers into the state in one year.
A move to the new terminal would also mean that the Passenger Service Charge (PSC) would cost higher from RM25 to RM51 that would burden passengers, he said.
AirAsia also had plans to use the low-cost terminal in Kota Kinabalu as a major eastern hub to venture into markets in North and South America, Australia, Korea, China and Japan.
But pressure from the Ministry of Transport to move the airline to the new terminal, expected in June this year, has forced AirAsia to put all these plans on hold until a resolution is reached.
With AirAsia moving to KKIA, the plan is to turn the low-cost terminal as a cargo facility which Fernandez described as not a profitable move as there is more money in bringing in passengers.
“KK is now depending on the low cost terminal. My recommendation is to get rid of the cargo and move it somewhere else. We have given a plan. What’s giving Sabah more? A little bit of cargo or millions of tourist that we are bringing?” he said.
At the moment, he said, the ministry and Malaysia Airports Berhad have not responded to the proposal which is putting the current situation into a stalemate.
Earlier, he described Sabah as a home to AirAsia in many ways and that the state government has been giving great support to the airline. He reminisced the early days when the airline had only two planes from which it built its empire. But he urged the government to allow it to grow further and beyond.
“We can do so much more. East Malaysia has so much to offer but the airport charges and the lack of airports, developing them is frustrating us. We are being held back to develop more international flights and it’s beginning to already affect KK,” he said. “Sabah really supported us, brought us to where we are, now we are saying ‘Don’t stop the support. We don’t need the money or anything. Just help us in expanding the LCCT,” he added.
AirAsia in Kota Kinabalu flies to 13 destinations in 6 countries including China, Indonesia, Malaysia, Philippines, Singapore and Taiwan and is estimated to carry around a million tourists into the state.
In December 2010, Transport Minister Datuk Seri Kong Cho Ha said that the ministry had an understanding with AirAsia to relocate airline, as well as other low-cost carriers to the new terminal once the RM1.4 billion upgrade project of the new terminal’s runway and resurfacing work were completed.
But Fernandez is determined to stay put whatever the outcome would be, saying that AirAsia has a proven success story in Sabah and wants to accomplish more.
Ministry of Transport reply to Tony's statement
QUOTE
MOT refutes AirAsia CEO’s misgivings on relocation to KKIA Terminal 1
14th February, 2011
KOTA KINABALU: The Ministry of Transport says the benefits far outweigh the extra costs for low-cost airline, AirAsia, when it relocates to the new Kota Kinabalu International Airport terminal scheduled in mid June this year.
According to its deputy minister, Datuk Abdul Rahim Bakri, the RM1.6 billion new airport is built to cater for the needs of all airline companies including AirAsia and support their growth in the industry. He acknowledges the extra costs involved but believes quality service and infrastructure would justify the expenses.
“The airport has the facilities to meet the needs of all airlines including AirAsia. There are extra costs involved of course but we have built this airport to ensure the growth of the industry,” he told New Sabah Times yesterday.
He was asked to comment on AirAsia Group CEO Dato Sri Dr Tony Fernandez who had said on Friday that the airline was against the relocation, citing higher costs and charges as well as lack of facilities as among the reasons.
He told newsmen then that if the airline had to move out from its traditional home at Terminal 2 to KKIA Terminal 1, its expansion plan for Sabah which includes strengthening the existing routes and the opening of new markets from here all the way to North and South America, Australia, Korea, China and Japan would be affected. And the state could experience a significant drop in the number of passenger and tourist arrivals as a result.
But the AirAsia boss’ stand on the matter however came as a little surprise to Abdul Rahim who said that the airline had in fact signed a letter of undertaking with the Ministry of Transport a few months ago concerning its relocation to the KKIA Terminal 1.
In December 2010, Transport Minister Datuk Seri Kong Cho Ha had said that the ministry had an understanding with AirAsia to relocate the airline and other low-cost airlines once the upgrading project of the new terminal’s runway and resurfacing work gets completed.
And he disagreed with Fernandez that KKIA would be congested during peak seasons.
“The new airport is designed for fourteen million passengers. Now we have five million. So the question about congestion does not arise. Even after ten years I don’t think we can reach its maximum capacity. So there’s plenty of space,” he explained.
On Fernandez’s concern that the relocation would cost passengers to pay RM51 of Passenger Service Charge (PSC) from what it is now at RM25 at the low-cost terminal, the deputy minister insisted the “good facilities” at KKIA would justify the extra cost. He explained the RM51 applies to passengers going abroad while domestic ones only pay RM9.
He said Malaysia airports charge a much lower PSC rate as compared with airports in other countries.
He further explained that cost on airport facilities such as the aerobridge would not hurt the airline for it is only about RM85 or RM0.50 per person on board an aircraft that carries about 100 passengers.
“After all, it’s like paying RM0.50 sen for convenience. And it’s OKU (individuals with disability) friendly,” he added.
Working the maths further down, he said airlines would benefit in terms of smoother transfers and connectivity, and in AirAsia’s case, passengers making a connection flight from other airlines could save money and time.
“Say for example, passengers who travel to Shenzhen (in China) on AirAsia could conveniently transfer if they fly here with another airline. They don’t have to take a taxi to go to Terminal 2 and lose precious time due to traffic congestion,” he said.
Fernandez said Friday that AirAsia had done a lot for East Malaysia particularly Sabah which he considered as the airline’s home in many ways and now wants to do a lot more. For this reason he called on the government to allow the airline to remain at Terminal 2.
Abdul Rahim responded saying that the ministry would leave it to the cabinet to decide.
In a statement issued Friday, AirAsia announced that it had carried over 32 million guests from all over into East Malaysia so far.
Meanwhile, Tourism, Culture and Environment Minister Datuk Masidi Manjun, when contacted to comment about the possible drop in the number of tourist arrivals to the state as claimed by Fernandez as a result of the relocation, said that he needed to gather more facts concerning the matter and would only respond in due time.
14th February, 2011
KOTA KINABALU: The Ministry of Transport says the benefits far outweigh the extra costs for low-cost airline, AirAsia, when it relocates to the new Kota Kinabalu International Airport terminal scheduled in mid June this year.
According to its deputy minister, Datuk Abdul Rahim Bakri, the RM1.6 billion new airport is built to cater for the needs of all airline companies including AirAsia and support their growth in the industry. He acknowledges the extra costs involved but believes quality service and infrastructure would justify the expenses.
“The airport has the facilities to meet the needs of all airlines including AirAsia. There are extra costs involved of course but we have built this airport to ensure the growth of the industry,” he told New Sabah Times yesterday.
He was asked to comment on AirAsia Group CEO Dato Sri Dr Tony Fernandez who had said on Friday that the airline was against the relocation, citing higher costs and charges as well as lack of facilities as among the reasons.
He told newsmen then that if the airline had to move out from its traditional home at Terminal 2 to KKIA Terminal 1, its expansion plan for Sabah which includes strengthening the existing routes and the opening of new markets from here all the way to North and South America, Australia, Korea, China and Japan would be affected. And the state could experience a significant drop in the number of passenger and tourist arrivals as a result.
But the AirAsia boss’ stand on the matter however came as a little surprise to Abdul Rahim who said that the airline had in fact signed a letter of undertaking with the Ministry of Transport a few months ago concerning its relocation to the KKIA Terminal 1.
In December 2010, Transport Minister Datuk Seri Kong Cho Ha had said that the ministry had an understanding with AirAsia to relocate the airline and other low-cost airlines once the upgrading project of the new terminal’s runway and resurfacing work gets completed.
And he disagreed with Fernandez that KKIA would be congested during peak seasons.
“The new airport is designed for fourteen million passengers. Now we have five million. So the question about congestion does not arise. Even after ten years I don’t think we can reach its maximum capacity. So there’s plenty of space,” he explained.
On Fernandez’s concern that the relocation would cost passengers to pay RM51 of Passenger Service Charge (PSC) from what it is now at RM25 at the low-cost terminal, the deputy minister insisted the “good facilities” at KKIA would justify the extra cost. He explained the RM51 applies to passengers going abroad while domestic ones only pay RM9.
He said Malaysia airports charge a much lower PSC rate as compared with airports in other countries.
He further explained that cost on airport facilities such as the aerobridge would not hurt the airline for it is only about RM85 or RM0.50 per person on board an aircraft that carries about 100 passengers.
“After all, it’s like paying RM0.50 sen for convenience. And it’s OKU (individuals with disability) friendly,” he added.
Working the maths further down, he said airlines would benefit in terms of smoother transfers and connectivity, and in AirAsia’s case, passengers making a connection flight from other airlines could save money and time.
“Say for example, passengers who travel to Shenzhen (in China) on AirAsia could conveniently transfer if they fly here with another airline. They don’t have to take a taxi to go to Terminal 2 and lose precious time due to traffic congestion,” he said.
Fernandez said Friday that AirAsia had done a lot for East Malaysia particularly Sabah which he considered as the airline’s home in many ways and now wants to do a lot more. For this reason he called on the government to allow the airline to remain at Terminal 2.
Abdul Rahim responded saying that the ministry would leave it to the cabinet to decide.
In a statement issued Friday, AirAsia announced that it had carried over 32 million guests from all over into East Malaysia so far.
Meanwhile, Tourism, Culture and Environment Minister Datuk Masidi Manjun, when contacted to comment about the possible drop in the number of tourist arrivals to the state as claimed by Fernandez as a result of the relocation, said that he needed to gather more facts concerning the matter and would only respond in due time.
This post has been edited by BeNz: Feb 14 2011, 11:29 AM