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30 November 2011
The new low-cost air terminal, or KLIA2, that is taking shape next to KLIA will nearly doubled its original size and will cost nearly twice its initial costing of RM2 billion to between RM3.6 billion and RM3.9 billion.
The increase in the size and cost will cater to 45 million passengers and is being built by Malaysia Airports Holdings Bhd (MAHB).
MAHB managing director Tan Sri Bashir Ahmad said it was slated for commercial operations in April 2013.
Speaking to the media yesterday, Bashir said the new airport was 40% complete, would have a 4km runway instead of the earlier planned 2.5km, a fully-automated baggage system, a new air control tower, 68 gates and eight remote stands.
The original size of the two-storey terminal building was 150,000 sqm but to cater to government requirement to segregate domestic and international passengers, it has been upgraded to nine storeys on a 257,000 sqm site.
It will have the most modern facilities and amenities to cater to future growth.
Base on the original design the airport could only cater to 30 million passengers.
Bashir also announced that the airport would have aerobridges and it was up to the airlines to use them. This is a decision the majority of the travelling public has been waiting for but AirAsia boss Tan Sri Tony Fernandes poured cold water on it by saying yesterday that “we will not use the aerobridges.”
MAHB has come under fire over allegations of cost over-runs and delivery dates but Bashir said that “KLIA is built as a national infrastructure asset to cater to the needs of airlines, Government, public and the airport.
As a result of these requirements, KLIA2 has been significantly upgraded with superior facilities compared with the original design.”
Bashir added therefore the issue of cost over-runs did not arise.
He cited the runway and baggage system as a case of requests made by airlines and to meet that meant additional investment and time taken to expand the runway. It is also increasing commercial space by 50,000 sqm.
“The longer runaway allows airlines to cruise longer and use less fuel,” he told a packed room of reporters who were earlier taken for a tour of the KLIA2 construction site.
Similarly, the adding of a fully-automated baggage system had also pushed the timeline to 2013 from October 2012 and the request, he said, “only came in June this year.”
For that the terminal building needs to be hacked and that involves the size of a “football field.”
|Items||Provisional (Feb' 2009)
RM3.6 - RM3.9 billion
|Increase in scope %|
|1. Terminal building||150,000 sqm||257,000 sqm||71.3%|
|2. Aircraft stand||Area - 500,000 sqm
50 semi contact stands
|Area - 803,709 sqm
8 remote stands
|3. Earthworks||Area: 4.85 mil sqm||Area: 11.19 mil sqm||130.7%|
|4. Runaway 3, Taxiway
Pavement & AGL System
|5. DCA Facilities||Apron Control Tower
|Air Traffic Control Tower
115.4% (nav. alds)
|6. Public Infrastructure||Length: 8.0km
With 1.5km elevated road
With 5.4km elevated road
Commenting on the higher cost of the new airport, Bashir said “when you increase the scope by so much, certainly cost will be incurred. We are building a better place and it will be the icon for low-cost travel in the world.”
He added that it was not uncommon to change the design when construction was ongoing.
Bashir also denied the notion that the higher cost to build a bigger airport would result in higher passenger service charges (PSC) for KLIA. He said it would remain the same as the current low-cost carrier terminal (LCCT). The fees were regulated by the Government and the next review was only in 2014. The Government allowed MAHB to raise the PSC recently and a RM7 increase for LCCT to RM32 was obtained after a nine-year request.
Contrary to suggestions that public money is used to build KLIA, Bashir said MAHB was funding the project.
“We are even paying the Government to build the public infrastructure and air control tower costing RM530mil,” he said.
MAHB, which has a AAA rating from RAM Ratings, has only drawn down RM2.5 billion from the RM3.1 billion raised from the sukuk it issued.
“We have several options in terms of raising additional funds including internal funds, debt and going to the equity markets,” chief financial officer Faizal Mansor said when asked how MAHB will source for more funds to complete the job. Bashir expects MAHB to break even almost immediately when KLIA2 opens for commercial operations.
He said MAHB had also completed earthworks for “AirAsia to have its building with apron access and this is a special dispensation. It would also have its own parking facilities and Tune Hotel. We have tried as much as possible to meet the requirements of our partners. We have also been very professional with our partners.”
The entire project has 42 contractors. Asked why the need for so many, Bashir said it was part of the stimulus package. The airport will have a Express Rail Link with the potential to be connected to KTM in the future
Asked to comment on a report that he would be replaced, Bashir said: “How would you like me to answer that?”
- 27 Dec, 2011 Traffic deviation near KLIA
- 26 Dec, 2011 Eventful 2011 for aviation, more headwinds await in 2012
- 15 Dec, 2011 Air Asia should use KLIA2 airport aerobridges: Disabled groups
- 14 Dec, 2011 Pua referred to outdated KLIA master plan, says Malaysia Airport
- 15 Dec, 2011 Why was KLIA2 moved to a soft soil site?
- 12 Dec, 2011 Spotlight is on MAHB's fourth delay, cost revision to KLIA2
- 10 Dec, 2011 NGOs laud inclusion of aerobridges at KLIA2
- 09 Dec, 2011 AirAsia keen to end MAHB spat
- 09 Dec, 2011 Festivities galore at terminal as budget carrier turns 10
- 08 Dec, 2011 Airport dispute
- 07 Dec, 2011 AirAsia hopes MAHB will accord fair consideration
- 07 Dec, 2011 AirAsia wants freeze on fees
- 07 Dec, 2011 AirAsia wants SLA for KLIA2
- 06 Dec, 2011 AirAsia seeks low charges in new Malaysian airport
- 06 Dec, 2011 MAHB says willing to ink SLA with AirAsia
- 06 Dec, 2011 New twist to AirAsia-MAHB feud over KLIA2
- 06 Dec, 2011 Puan Faizah Khairuddin named Personality of the Month
- 05 Dec, 2011 Overall, MAHB is on the right track
- 05 Dec, 2011 Pan Pacific Kuala Lumpur Hotel taps into MICE market
- 04 Dec, 2011 AirAsia vs MAHB: The gloves are off
- 04 Dec, 2011 Be professional, not personal
- 04 Dec, 2011 MAHB: AirAsia asked for bigger KLIA2
- 04 Dec, 2011 Stop the blame game
- 03 Dec, 2011 Management, board fully support Bashir
- 03 Dec, 2011 Of airport taxes and cost overrun
- 02 Dec, 2011 AirAsia and Malaysia Airports urged to move on
- 02 Dec, 2011 AirAsia: NO to airport tax increase
- 02 Dec, 2011 AirAsia: Stop harassing our staff
- 02 Dec, 2011 Rumours fly over new chief for MAHB
- 02 Dec, 2011 Why is Tony unhappy?
- 01 Dec, 2011 For MAHB, new low-cost carrier terminal is a calculated risk
- 01 Dec, 2011 KLIA2 will be the biggest low-cost terminal
- 30 Nov, 2011 PJII unit gets RM34.6 million KLIA2 job
- 30 Dec, 2011 A bigger-than-planned, more efficient low-cost terminal
- 30 Dec, 2011 AirAsia will not use aerobridges at new low-cost terminal
- 29 Nov, 2011 KLIA2 cost rises to RM3.9 billion, to only open April 2013
- 29 Nov, 2011 KLIA2 to cost RM3.6 billion to RM3.9 billion
- 29 Nov, 2011 KLIA2 to start operations in April 2013
- 28 Nov, 2011 KLIA2 baggage system upgrade to cost MAHB RM100 million more
- 26 Nov, 2011 Fernandes sees fantastic year ahead for the low-cost carrier
- 26 Nov, 2011 KLIA2 cost overrun poser to be answered on Tuesday
- 24 Nov, 2011 Explain ballooning cost of KLIA2
- 23 Nov, 2011 DAP seeks full disclosure on KLIA2 costs
- 23 Nov, 2011 Fernandes mocks Malaysia Airports over KLIA2
- 23 Nov, 2011 Many have wrong picture of MAHB, says its Chairman
- 22 Nov, 2011 KLIA2 to cost more than RM2.5 billion?
- 19 Nov, 2011 Lots of room for retailers at KLIA2
- 17 Nov, 2011 Bidding opens for 225 commercial lots in KLIA2
- 15 Nov, 2011 MAHB unveils big ambitions for new low-cost terminal
- 11 Nov, 2011 MAHB: More flights expected to come to Malaysia
- 10 Nov, 2011 MAHB projects RM1.2b retail sales at KLIA2 in first year
- 10 Nov, 2011 Malaysia Airports unveils KLIA2 retail proposition
- 10 Nov, 2011 Retailers can bid for KLIA2 space next year
- 09 Nov, 2011 Malaysia Airports unveils partnership model
- 28 Oct, 2011 Completion of KLIA2 to drive earnings of MAHB starting 2013
- 28 Oct, 2011 TNB wins KLIA2 jobs
- 11 Oct, 2011 KUB Builders win RM268.8mil contract from Malaysia Airports
- 29 Sep, 2011 KLIA2 to be commercially driven
- 28 Sep, 2011 Airport redesign to plug loopholes
- 23 Sep, 2011 MAHB signs RM530mil deal with WCT to develop KLIA2
- 22 Sep, 2011 Govt to wait for MAHB's decision on KLIA2 aerobridge
- 12 Sep, 2011 KLIA2 must come with aerobridges
- 10 Sep, 2011 Why not aerobridges?
- 08 Sep, 2011 KLIA moves up in online travel poll
- 20 Aug, 2011 Disabled group insists on aerobridge at new KLIA2 terminal
- 20 Aug, 2011 MAHB aims for the sky
- 20 Aug, 2011 Talks of revamp at MAHB fizzle out
- 29 Jul, 2011 KLIA2 40% completed
- 15 Jul, 2011 New LCT designed to enable installation of aerobridges
- 01 Jun, 2011 Strong demand for air travel results in MAHB profit jumping 20%
- 30 May, 2011 AirAsia X IPO gets a boost
- 30 May, 2011 Strong interest to jointly develop 50 acres near KLIA2
- 10 May, 2011 Lower air passenger traffic due to higher oil prices
- 29 Apr, 2011 MAHB plans to get new low-cost terminal job done well
- 17 Feb, 2011 MAHB quarterly net profit down on FRS 139 adoption
- 30 Jan, 2011 New, better KLIA2 takes wings
- 25 Jan, 2011 Regulatory body needed for airline industry, says Fernandes
- 24 Jan, 2011 Khazanah stresses on need for timely delivery of KLIA2