The new budget air terminal at Labu
I read with apprehension at the recent announcements by Sime Darby Berhad and Air Asia with respect to their receiving government approval to build a new low-cost terminal at Labu, Negeri Sembilan. The announcements coincided with a statement by Malaysia Airports Berhad (MAHB) that it is ready to construct a new low-cost terminal to replace the existing LCCT at KLIA. The statements, and the subsequent comments by Air Asia spokespersons, gave the impressions that a new low-cost terminal is urgently needed, that MAHB has not been responsive to the needs of Air Asia, that Air Asia could easily save 15 pct of operating costs by moving to the new terminal at Labu and that not a single sen of public money will be utilised.
The following questions need to be answered by the government:
1. Was the approval given to the Sime Darby-Air Asia consortium based on the construction of a totally new airport, complete with runway(s) ? No one has indicated that there will be new runways, but it would be ridiculous to assume that planes could land on the existing KLIA runways and taxi the 7 km to the new Labu terminal. Sime announced that the new terminal would take up approximately 3000 acres of land, and surely a terminal without runways would not require such a sizeable landmass. If there are going to be runways, who would be paying for the Air Traffic Control (ATC) facilities ? Who would be charging passengers for airport taxes ?
2. Was any cost-benefit comparison made with respect to the construction of a new terminal at KLIA as opposed to a new terminal (or should we say airport) at Labu ?
