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Infrastructure

KL International Airport set to expand

Dato' Seri Bashir Ahmad, Managing Director

THE KL International Airport (KLIA) in Sepang, now in its eighth year of operations, is becoming increasingly congested and airport operator Malaysia Airports Holdings Bhd  has launched plans for expanding facilities.
The airport has the capacity to handle 25 million passengers a year, but saw 23.2 million passengers passing through its doors in 2005. Based on the airlines maintaining the existing services, it is expected that more than 24.5 million passengers will have used KLIA in 2006.
Increased flight frequencies of several airlines in addition to eight new international airlines starting operations from KLIA contributed to the higher passenger volume in 2005. They comprised Shenzhen Airlines from China, Thai AirAsia, Thai Sky Airlines, Jet Airways of India, Pakistan International Airlines (PIA), Air Nepal International, Indonesia Air Asia and Transaero Airlines from Russia.
Since then, KLIA has continued to attract more airlines the latest being, Kuwait Airways and Cebu Pacific, which operated 1st November 2006 and 1st Decembr 2006 respectively. Four other airlines - Finnair, Etihad Airways, GMG Airlines and Hainan Airlines - are reportedly planning scheduled services  into KLIA in 2007.
Low-cost carrier AirAsia Bhd has been credited for making KLIA a more economical and popular airport, providing passengers with more destinations and cheaper fares. That, in turn, has attracted more passengers, prompting some airlines to add flights. More options lure more passengers.
And with the surge in passengers comes even better news: planned airport improvements, including an expanded retail space and an enhanced information technology infrastructure.
Expansion plans involve building a second satellite terminal, planned to handle an additional 10 million passengers with a floor area similar to the existing satellite building.
The recent air traffic growth at KLIA could also be traced to the efforts taken up by the Malaysian Government and Malaysia Airports to attract airlines to fly to Kuala Lumpur.
In 2002, the Malaysian Government announced that landing and parking fees for new foreign airlines using KLIA would be waived for five years. The same concessions apply to new flights by foreign airlines already using the airport.
Even as this incentive scheme is due to expire in May 2007 Malaysia Airports’ Managing Director, Dato' Seri Bashir Ahmad, has stated: “We will continue to promote the airport and provide incentives (to airlines).”
Today, KLIA is more of a destination hub than a transit hub.
“About 30 per cent of our passenger traffic is transit traffic, which means traffic that comes to Kuala Lumpur just for connection to another destination. But what matters more is that we must have volume. That is why in the case of KLIA, it does not matter if the airline that flies to KLIA is small, it adds volume and connectivity to the airport,” Bashir said
“When you do a market study, you want to look at connections as well. There will be passengers who want to go beyond Kuala Lumpur. So that is why the connectivity helps to create market demand,” he added.
Bashir explained why he believes that KLIA can become the region’s premier airport. “We can (do it), but first of all we must create demand into the country through tourism and business and use this demand to provide the initial connectivity. Once we have the connectivity, we can develop the transit traffic.
“That’s why having a strong home carrier is important to provide the basic connectivity. If you look at today’s successful aviation hubs, they have a very strong home base carrier. That’s why I always say, “For an airport to be successful, you must have a successful home base carrier. And for an airline to be successful, you must have a good and efficient airport as a base,” he said.
As Malaysia’s national carrier, Malaysia Airlines (MAS) is one of the world’s best airlines with good onboard service. This will continue to be the airline’s strength, as it builds on its experience and with the arrival of the Airbus 380s in 2008, it will be in the forefront of aviation technology.
In the 1980s, MAS was the first major government agency to be privatised. It has since then become a public-listed company on Bursa Malaysia. MAS now has a fleet of 85 aircraft in its network, flying to over 100 destinations around the world.

The original of this article was written by Kang Swee Lee, New Straits Times, Malaysia

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