JP/16/Airport

JP/16/Airport

KL to build second terminal as it gears to receive more airlines

Associated Press
Kuala Lumpur

A second terminal will be built at the Kuala Lumpur International
Airport to accommodate rapidly growing passenger traffic, as at
least four more foreign airlines including two Indian carriers
get set to fly to Malaysia, an official said.

The existing terminal is nearing its capacity of 25 million
passengers annually and the new terminal will be able to cater to
an additional 25 million passengers, Bashir Ahmad, the managing
director of Malaysia Airports Holdings Bhd., told reporters late
on Monday.

Malaysia Airports Holdings is a government linked company that
manages and operates all airports in the country.

Construction of the new terminal will begin next year and will
be completed by 2008 at a cost of 4 billion ringgit (US$1.05
billion), Bashir said.

The design of the new terminal will be similar to the present
one with its tent-shaped white pavilions, and will be able to
accommodate the new superjumbo airbus A380 aircraft, Bashir said.

The ultramodern KLIA, which opened in 1998 at a cost of 10
billion ringgit, was supposed to have reached its 25 million
passenger capacity by last year, but the target couldn't be
reached because of the fall in tourism due to SARS and bird flu
health scares.

But last year, KLIA reported more than 20 percent growth in
arrivals to 21.1 million. The International Air Transport
Association forecast passenger traffic in KLIA to grow by at
least 7 percent this year.

The second terminal will be in addition to the 100 million
ringgit low-cost carrier terminal that will be built at the KLIA
to cater to the boom in no-frills airline industries in the
region, led by the successful AirAsia of Malaysia.

The new projects are part of the strong growth in airport
business in Asia.

Singapore is adding a third terminal at its Changi airport
while Thailand is scheduled to inaugurate next year a new
international airport outside Bangkok to replace its aging Don
Muang airport.

Bashir said that at least four and up to seven more foreign
airlines are expected to start flying to KLIA this year,
including Jet Airways and Sahara Airways from India, which have
confirmed they will begin fights from the southern Indian cities
of Madras from April.

Bashir did not name the other two airlines.

"In fact Jet Airways is now inquiring about setting up their
office in KLIA," he said.

A total of 46 airlines are currently operating in KLIA,
including China's Shenzhen Airline that started flying into KLIA
early this year.

"We are a threat to everyone (other airports in the region).
We have a huge potential for growth in both the domestic and
outgoing market. Tourism is coming in the country," he said.