http://biz.thestar.com.my/news/story.asp?file=/2005/3/8/business/10354098&sec=business
Tuesday March 8, 2005 Second satellite terminal at KLIA BY B.K. SIDHU A SECOND satellite terminal building is to go up at the KL International Airport (KLIA), and be operational by 2008, to cater to the growing traffic in air travel. KLIA operator Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Bashir Ahmad said work would start soon, or by next year. Given its experience in building the main terminal, MAHB is confident that it could put up the terminal in two-and-a-half to three years. The second satellite building is in addition to the previously announced RM100mil hub at KLIA for low-cost carriers (LCC) to meet the growing budget air travel business in the region. Bashir, speaking to reporters after the opening of the third New Route Asia 2005 forum in Kuala Lumpur yesterday, said the finer details had yet to be firmed up. But the second terminal is expected to cost about RM4bil. "We are in talks with the Government on the funds for the building and on our financial restructuring. We want to get (the financial restructuring) right so as to make MAHB viable," he said. MAHB is in advanced talks with the Government to restructure the RM856mil that it owes in concession payments, which total RM1.3bil. Going by original plans, the second terminal was to have been operational last year, but the 1997-98 Asian financial crisis, the Sept 11, 2001, terrorist attacks on the United States, and the SARS outbreak that threw the global aviation industry into turmoil, put paid to such hopes. However, air travel has since picked up, with the International Air Transport Association (IATA) forecasting average global growth in air travel of 6% up to 2008. KLIA is nearing its capacity of 25 million passengers a year, thus the need for the new terminal. Last year, KLIA handled 21.1 million passengers. This year it expects a 7% growth to 22.5 million. Next year, the forecast is 25 million. A total of 46 airlines, carrying both passenger and cargo, operate from KLIA currently. Malaysia is not the only country planning additional facilities. Singapore is spending US$1.75bil to add a third terminal at Changi while Thailand is building a new airport in Bangkok, which is expected to open early next year. To a question, Bashir said that there had been no request yet from other budget carriers (apart from AirAsia), or even Malaysia Airlines, to operate some flights from the LCC terminal. "The LCC hub is for LCC airlines, and if traditional airlines want to use it they have to justify (the need to do so),'' he said. KLIA is also being upgraded to cater to the A380. There would be five gates at the main and second terminal building to cater to the super jumbo. Asked about efforts to improve the baggage system at the main terminal, Bashir said: "We are trying to find a solution that will resolve all the baggage problems we have had. The Government is very serious about it.'' Bashir also felt there was a need to upgrade the Kuala Terengganu and Kota Kinabalu airports. Upgrading works at Kuching airport are in progress. The New Route Asia forum, which Malaysia is hosting for the third time, brought together 300 delegates representing the region's airlines and airports to discuss future market opportunities. ------------------------ Yahoo! Groups Sponsor --------------------~--> Has someone you know been affected by illness or disease? Network for Good is THE place to support health awareness efforts! http://us.click.yahoo.com/Rcy2bD/UOnJAA/cosFAA/GEEolB/TM --------------------------------------------------------------------~-> Bantu Aceh! Klik: http://www.pusatkrisisaceh.or.id Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ekonomi-nasional/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/