Report on Air Asia

Topics: Kuala Lumpur International Airport, AirAsia, Kuala Lumpur Pages: 5 (1802 words) Published: February 22, 2012
On its website AirAsia has listed down several justification on its need to build a new airport for its own purpose.[8] Among them are:- Passenger capacity - Although the current LCC Terminal in KLIA is currently undergoing construction to enable the terminal to handle 15 million passenger a year, AirAsia expects that the terminal will only hold the passenger growth for only one year. The company anticipates to handle 25 million passenger through the terminal on 2013 which a short fall of over 10 million passengers. There was also concerns that MAHB may not be able to build the new LCC Terminal in KLIA on time to accommodate the expanding fleet of AirAsia aircraft. In addition, there has been complaints the present LCCT is "a little more than a shed", and concern the new LCCT may not be that much better standard. Runaway capacity - AirAsia claims that KLIA LCC terminal does not have the capacity to cope up with peak hour aircraft movements. They are expecting to have 159 Airbus A320 and 25 widebody Airbus A330 by 2013. Connectivity - AirAsia claims that there are poor connectivity on the terminal Airport facility - AirAsia claims that waiting time for taxiway has increased due to huge airport layout. They also claimed that the number of gates needed for their operations in the future are insufficient. Autonomy - AirAsia purports it would not have any say in the new facilities in KLIA and that Malaysia Airports Berhad, the operators of KLIA, intends to build. The airline fears that landing and other charges could rise. It thus announced a plan to build its own airport which it claims will be built on time and to keep expenses low. There has been frustration by AirAsia in the poor performance of the KLIA operators.

AirAsia has also list down the justification of choosing the site for the airport.[9] Among them are:- Location - The new location is cost efficient, good connectivity to highways and railway lines, and a readily available land. The land is owned by Sime Darby. AirAsia also claimed that the land proposed by the airport operator, Malaysia Airports is unsuitable due to Express Rail Link height and power issues. The land is also has poor soil quality making it more expansive and time costing to develop. AirAsia claims that distance between both airport runaways exceed international standard of 2 km. Access - AirAsia claims that the new terminal has seamless connectivy via road and rail. Passenger Capacity - According the AirAsia, the phase 1 of the airport will able to handle 30 million passenger a year, and phase 2 will able to handle 50 million per year.

AirAsia on its website claims that building a second terminal building opposite the current one, as envision in the KLIA master plan was not possible due to Express Rail Link powers cable height issues.[10]

According to a local business newspaper, AirAsia enjoys incentives such as waiver of all aeronautical charges except Passenger Service Charge, which is borne by the passenger expires in 2007. The incentive was given as a part of convincing AirAsia to move from Subang Airport to Kuala Lumpur International Airport. However, the incentives covers not only KLIA but all airports where AirAsia operated. Incentive covers waivers on landing, parking, aerobridge and check-in counter charges. It expected that AirAsia wants it own an airport to help better manage airport costs.[11]

[edit] Argument against building the airport
The International Air Transport Association (IATA) mentioned that having a single (international) airport is the preferred way to make Kuala Lumpur an aviation hub of choice. It also indicated that by having two (international) airports would mean duplication of services such as fire and rescue, air traffic control, immigration and customs, which in turn would raise the cost of air travel. Finally, the association cited potential problems in managing air traffic as the site of the new airport at Labu is too close to KLIA.[12]...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Air Asia Essay
  • Report on Air Asia Essay
  • Air Asia Project Report Essay
  • Air Asia Strategic Report Essay
  • Essay on air asia
  • Air Asia Essay
  • Air Asia Essay
  • Air ASIA Essay

Become a StudyMode Member

Sign Up - It's Free