M'sia to woo regional carriers to new budget terminal: Report

M'sia to woo regional carriers to new budget terminal: Report

Associated Press, Kuala Lumpur

Malaysia will woo regional budget carriers to a new low-cost terminal that will be launched next year, although AirAsia is expected to be the main user, reports said on Thursday.

AirAsia, Southeast Asia's leading budget airline, will occupy 24 of 30 parking bays available at the new terminal and account for half of its 10 million annual passenger capacity, Bashir Ahmad, chief executive of Malaysia Airport Holdings Bhd., told the New Straits Times.

But he stressed that the 108 million ringgit (US$28.6 million) terminal, located at the Kuala Lumpur International Airport or KLIA, is not built exclusively for AirAsia.

"We welcome airlines, which fall under the budget carrier category, to use this terminal. Even (Indonesian) boutique carrier AdamAir, which plans to fly into the KLIA next year, can use this facility," Bashir said.

The terminal will open by March or April 2006 and is expected to reach its maximum capacity "within five to six years," he added.

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

AirAsia's chief executive Tony Fernandes told The Star that he was "not opposed to other airlines" using the low-cost terminal, which will be linked to the main airport via bus service.

The government decided to build the dedicated terminal earlier this year to help KLIA compete as a regional hub and counter competition from neighbors Singapore, which is also building a terminal for budget carriers, and Thailand.

Malaysia's low-cost terminal will be five times bigger than the one being built at Singapore's Changi Airport, which can cater to 2 million passengers a year, officials say.