Malaysia’s new budget airport takes off

The Kuala Lumpur International Airport 2 (klia2), which Malaysia calls the world's largest purpose-built low-cost terminal for low cost carriers, officially commenced operations on Friday with the arrival of Malindo Air Flight OD1027 from Kota Kinabalu at 12.05am.

The first aircraft to take off from the airport was a Cebu Pacific Airways flight (Flight 5J502) to Manila with time of departure of 3.15am.

Present at the airport to witness the historic moment were Deputy Transport Minister Abdul Aziz Kaprawi, Malaysia Airports Holdings Bhd (MAHB) chairman Dr Wan Abdul Aziz Wan Abdullah, MAHB managing director Bashir Ahmad and Department of Civil Aviation (DCA) director general Azharuddin Abdul Rahman.

'Goodie bags' distributed to the 110 passengers of the Malindo Air flight were also given to the 147 passengers on the Cebu Pacific Airways flight.

Earlier at 10.20pm on Thursday, the check-in process began and proceeded without any hitches.

The first passenger to check in, Gemma Camarinta, 39, who was travelling to her hometown in Bohol, Philippines said she was happy and excited to be part of the historical event.

A frequent user of the previous Low Cost Carrier Terminal (LCCT), she said the new hub was more comfortable, and easier to reach where one could use the Express Rail Link (ERL) straight to the terminal.

Another passenger, Ace Perez, 30, said compared to the LCCT, klia2 was much better because it was spacious, comfortable and clean.

"I like the route because it is easily reached from the highway. I am happy with this new building compared to LCCT because there, I had to walk very far to get to the aircraft," he said.

Meanwhile, MAHB in a statement said airlines starting to operate from klia2 on Friday were Malindo Air, Cebu Pacific Airways, Lion Air and TigerAir while AirAsia will move to klia2 by May 9.

MAHB expects 7,000 passenger traffic movements daily for the initial phase of operations, and 50,000 passenger traffic movements from May 9 onwards.

Gatewayklia2, which duals as a public transportation hub that has a fully gated car park which can accommodate 6,000 vehicles, ERL, taxi and bus service, and retail mall of 350,000 sq ft with over 200 outlets also commercially opened to the public on Friday, according to the statement.

MAHB said the LCCT will cease operations after May 9, and for the convenience of passengers, complimentary shuttle bus service between klia2 and LCCT will be provided from May 1 until May 15, and is available every 15 to 20 minutes.

The immigration, security and customs counters at LCCT will also continue to operate until May 9, and passengers are advised to contact their respective airlines to confirm details of their flights to avoid any inconveniences.

The klia2 is designed to handle 45 million passengers a year, replacing the LCCT which had a capacity for only 15 million passengers a year.

At a press conference after the arrival of the Malindo Air flight, Abdul Aziz said the opening of the terminal went very smoothly and as planned.

"We have proven that everything would proceed as scheduled as we had announced before. We are proud as this (klia2) has become the latest Malaysian icon," he said.

Abdul Aziz said the cost of the terminal was within the RM4 billion budget which had been allocated earlier, and that a total of 22 million passengers were expected to use the terminal this year.

He said the government was optimistic that more airlines would want to set up their operations there in the future.

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Malaysia opens new budget airport on Friday

Malaysia this week opens what it calls the world's largest airport built specifically for low-cost airlines, a project driven by budget travel's phenomenal growth but which debuts under the shadow of missing flight MH370.

The $1.2 billion facility near the main Kuala Lumpur International Airport (KLIA) was originally targeted to open three years ago but has been hit by repeated delays, amid concerns over safety and subpar construction, even as costs have doubled.

But the new KLIA2 budget terminal will begin operations Friday with an initial 56 flights, increasing the load as airlines move full operations over from a nearby existing facility in coming days.

Analysts and the travelling public agree the opening of a new budget terminal is long overdue.

The current low-cost terminal is a cramped and bare-bones facility that resembles a bus station. Capacity is 15 million passengers, but about 22 million squeezed through last year.

The gleaming KLIA2 meanwhile covers an area equal to 24 football fields, authorities said, about four times the size of the facility it is replacing.

Its modern design features soaring ceilings, natural lighting, people-mover belts and improved connectivity with access to an existing express airport train to Kuala Lumpur 50 kilometres (31 miles) away.

Malaysia-based Malindo Air, the Philippines' Cebu Pacific Air, Singapore's Tiger Airways, and Indonesia's Lion Air and Mandala Airlines will begin initial operations there Friday.

Regional low-cost leader AirAsia plans to join them by May 9, when the old terminal is due to close.

About 24 million passengers are expected to pass through KLIA2 in the first 12 months, and annual capacity is 45 million. Current capacity at the main KLIA terminal is roughly 40 million, but expansion plans are in the works.

"KLIA2 will cement Kuala Lumpur's position as a thriving hub for both low-cost and full-service travel," said Bashir Ahmad, managing director of state-linked airport operator Malaysia Airport Holdings Berhad (MAHB) which built KLIA2.

Kuala Lumpur has been at the core of a regional budget-travel boom credited in large part to Malaysia-based AirAsia.

The once-failing airline was acquired in 2001 by outspoken Malaysian entrepreneur Tony Fernandes.

He quickly turned it into one of the aviation industry's biggest success stories, its rapid regional growth helping to broaden a market that has benefited a host of Asian competitors.

"AirAsia is the driving force behind this growth because of its size and its ability to attract travellers with its price-sensitive tickets," said Shukor Yusof, an aviation analyst with Malaysia-based Endau Analytics.

"KLIA2 will serve as a catalyst to propel air travel in Asia, which is experiencing robust growth."

But the still-unexplained March 8 disappearance of Malaysia Airlines flight MH370, which took off from the main KLIA, has raised worldwide concern over Malaysian aviation and focused attention on KLIA2's problems.

Its delays and rising costs triggered an ongoing inquiry by a parliamentary committee and accusations last month by impatient AirAsia officials of "many concerns, especially on functionality, safety and security."

These included depressions on runways and taxiways, said the airline, which threatened not to move in. MAHB has acknowledged KLIA2 is on unstable ground that will require years of upkeep.

Malaysia's government is accused of presiding over a crony capitalist system often blamed for frequent problems and unexplained cost overruns in big projects.

Fernandes has previously accused the government of favouring loss-making flag carrier Malaysia Airlines over profitable rivals like AirAsia.

But AirAsia agreed in mid-April it would move over to KLIA2 after the government said the International Civil Aviation Organisation (ICAO) would inspect the facility.

Malaysia said last week ICAO approval was given.

"I would like to confirm that KLIA2 is safe," Transport Minister Hishammuddin Hussein told reporters last week.

Fernandes declined comment.

Shukor said the Asian budget-travel segment had roughly tripled over the past decade to about 50-70 million passengers in 2013, or about 20 percent of regional air traffic.

The expanding Asian middle class means the market can expect further "robust growth of up to 10 percent annually, especially with the launch of KLIA2."

Pushing a baggage trolley, Agnes Tay, 33, a financial manager for Adidas who was among volunteers in a recent KLIA2 trial run, called the terminal "a breath of fresh air."

"It is clean and I feel safe. It will make me fly more often," Tay said.

Malaysia hopes KLIA2 will help increase and broaden the flow of tourists to the country. Nearly 26 million came in 2013, the vast majority driving over from neighbouring Singapore.

MH370 has cast a cloud over hopes of increasing fast-growing arrivals from China, Malaysia's third-largest source of tourists.

Two-thirds of the 239 people on MH370 were from China and tens of thousands of Chinese have cancelled plans to visit.

But analysts said long-term effects are not expected.

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AirAsia agrees to move to troubled new Malaysia airport

Malaysian budget airline AirAsia said on Tuesday it would move to a much-delayed new international terminal set to open next month despite recently criticising it as rife with safety issues and other problems.

The facility near Kuala Lumpur International Airport (KLIA) is being touted by Malaysian authorities as the world's largest low-cost airline terminal.

But the so-called "klia2" has been hit by repeated delays, construction problems and costly overruns that have sparked a parliamentary investigation and harsh criticism by AirAsia directed at the state-linked Malaysian airport operator building the terminal.

However, AirAsia, which has rapidly become one of the world's top budget airlines, said in a statement Tuesday it was now satisfied with the government's commitment to safety after authorities said the International Civil Aviation Organization (ICAO) would be brought in to evaluate klia2.

"This decision reflects the priority that the government is giving to the issue of safety, and assuring the public that klia2 is safe," it said in a statement, adding it would move into the facility for its May 9 opening.

AirAsia had said two weeks ago it would not move in unless "unresolved pressing issues" were addressed, including "depressions" on the runway it said were discovered by independent inspectors.

AirAsia has also complained that it was shut out of decision-making, despite being the facility's biggest and most important future tenant.

Its concerns raised further questions about aviation safety in the country as authorities struggle with the crisis of missing Malaysia Airlines flight MH370.

AFP was unable to reach AirAsia officials immediately for comment on the sudden about-face.

AirAsia group boss Tony Fernandes said on his Twitter feed that "some good progress" had been made on klia2.

The facility is being built by the country's airport operator, Malaysia Airports Holdings Bhd (MAHB).

MAHB has said carriers will have to move in by May 9, when it plans to close an existing low-cost terminal nearby which handled 22 million passengers last year.

The klia2 terminal was originally due to open in 2011 but has been repeatedly delayed, and its price tag has doubled to $1.2 billion.

MAHB has previously acknowledged klia2 is located on unstable ground that may settle, and that the facility could require years of resulting upkeep.

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