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Low cost-carriers (LCCs) in Malaysia & Singapore

After considering all views on Subang airport on whether it’s still suitable to function as a low-cost carriers (LCCs) hub, Government decided to do away with the AirAsia’s proposal to operate from Subang. Instead, a new terminal for budget airlines will be built at Kuala Lumpur International Airport (KLIA) in Sepang.

Transport Minister Datuk Seri Chan Kong Choy said yesterday that he had consulted several parties before decided with the move and promise to fasten the construction of the new terminal to lower the turnaround time for LCCs. Quote:

"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. "

This time, Government had made a correct choice.

In fact, I strongly believe that those who still insist and argue on the re-opening of Subang airport for LCCs should do a ride back on the evolvement of Asia’s aviation industry.

After hefty spending on KLIA airport with the most advance architecture and infrastructure, as well as the vision to develop it into one of the Asia Pacific primary hub, Subang airport is no longer relevant with so many issues and concerns around.

Let’s take a look down-south. Neighbourhood factor like Singapore’s Changi Airport had been identified as the biggest threat to Malaysia in becoming an Asia-Paficif hub for LCCs. Currently, two terminals there are almost being fully utilised, now in the midst of constructing the third and a new LCC terminal.

And what so interesting about this is that, three LCCs are currently operating out of Changi Airport. They are Valuair, Tiger Airways and Jetstar Asia.

So, it means that, when everything falls into places, Changi Airport is definitely going to enjoy the fruit out of it.

Not to mention then, even now too, KLIA is trailing Changi Airport and Bangkok Airport in the race to be crowned as the king of regional hub.

From zero at the start of 2004, to three at the end, not bad at all though. This, no doubt contributed to the growth of the travel industry in Singapore.

While it remains to be seen if the small market can sustain three LCCs in long run, the traffic these airlines have brought and will bring has put a smile on the faces of the Changi Airport. This, Malaysia Airports Berhad (MAB) must take a closer attention to it.

In the end of the day, the decision has been made to position KLIA as the premier air hub in Malaysia. Now, It’s all on how MAB going to tag along with Government, airlines, LCCs, NGO as well as various feedbacks from public to woo traffics inward and put in some shines into the Malaysia aviation industry.

I wish them the very best.

Related posts:

  1. Low Cost Carrier Terminal: Say Hi to the world!
  2. Adam Air: A threat to AirAsia?
  3. Low-cost airline in Perak?
  4. Thai AirAsia woes as Shin becomes alien
  5. Malaysia Airlines banned in India?

5 comments to Low cost-carriers (LCCs) in Malaysia & Singapore

  • I think there were two factors in the decision:

    1. There is considerable rezoning of the areas around Subang to make it unsuitable for a reconversion to a Domestic terminal. Many areas have been turned into housing areas.

    2. Government has already sunk a lot into KLIA, the investment for an LCC terminal would be incremental.

    However, having said all that, it takes more than a new terminal to attract more traffic. KLIA is just so badly designed and badly run. I hate having to travel through that KLIA.

    Anyone who has to pick up arriving passengers at KLIA knows what I mean. Parking charges are so high, that everyone decides to double park , causing massive jams.

    Checking in is such a hassle, and the baggage handling still requires those plastic tray-boxes to ensure no jams in the KLIA.

    You have to walk forever to get to your gate (especially if you’re flying domestic), and there are so few cafes and shops in between the departure gates (The airport’s design neglects to put in space allocations). The switch off some of the lights to save costs and the humongous ceiling gives a feeling of cold emptiness in the airport.

    More needs to be done to improve the operations of KLIA.

  • My preference for SUbang was only due to its accesibility factor. For people who arguee about the cost, the facilities are already there and I am not sure who came out with the estimates, but building a new one at KLIA might be costlier.
    Residents in Subang also forget that the Air Force jets are still operatign from there.
    I often pass through Changi (in transit) and the difference between KLIA is very clear.
    Changi is much more csutomer friendly. Just look at the interior decorations, free magazines, shops and more shops. And you don’t have to pay for everything. For travellers in transit, they even give you a free tour of the city (but can’t get out of the bus). One more little known secret is the swimming pool on the top of the airport, which is also free for travellers.
    Most important, so many modes of CHEAP and regular public transport available.
    KLIA has a long way to go but we have no choice do we.

  • [...] As for budget flyers, when comes to select a low-cost carriers (LCCs), it’s very much on its low pricing which determines the acceptance level. If it’s cheap enough, I can’t see any logic that public is going to deter Adam Air, though some might be skeptical towards its Indonesia origin. [...]

  • [...] "There were two potential candidates but he de-clined to name them. We’ll do everything to comply with Thai laws on foreign business ownership. We don’t want to be in a grey area." Currently, Temasek directly and indirectly owns three low cost carriers (LCCs) in Singapore, which consist of Tiger Airways, JetStar Asia and its sister company Valuair while AirAsia was founded by Malaysian Tony Fernandes. Competition is keen across the border for a portion of LCCs’ market share among major destinations in South East Asia and China. [...]

  • Kramer auto Pingback[...] air … thestar.com.my/news/story.asp?file=/2007/10/26/nat… &#149 Found on Ask.com Low cost-carriers (LCCs) in Malaysia & Singapore | MageP’s Lab SK Thew | Malaysia Social-Political Blog | A conscious Malaysian who is concerned about the [...]

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