KLIA2 and AirAsia….. Again

20140415-052353.jpg

20140415-052449.jpg

I would like to respond to some comments made by my beloved readers in regards to AirAsia and KLIA2.

IN DEFENSE OF TONY FERNANDES AND AIRASIA

1) There are some unwarranted comments made towards Tony. I find it disgusting. My criticism is based on KLIA2’s issues. Why should some people racialise it?

2) There are many successful Indian businessman that deserve to be respected. Take for example Tan Sri Gnalingam (WestPort) and Tan Sri AK Nathan (Eversendal). They are our success story.

3) I may have gone overboard by saying Tony needs Malaysia more than Malaysia needs him. Truth is, both need each other and won’t succeed without one another.

4) We must remember that whatever bad things Tony did; his biggest contribution is creating jobs wherever AirAsia go – and of course in particular in Malaysia. To be fair to him, he has appointed two Malay CEOs Azran and Aireen for his companies; no other non-bumi companies would do so other than as puppet proxies.

5) Yes, MAHB supported him. Yes, the government supported him. The government also supported so many other companies but how many has actually ‘paid back’ generally in the terms that AirAsia did i.e. creating full value chain of livelihood for cab/bus drivers, stall owners, hotel operators, travel agents, etc just by relying on AirAsia’s spill-over effects.

6) For the pittance of rip-offs and subsidies that Tony and AirAsia ‘robbed’ from MAHB, government and Malaysians – perhaps a few hundred millions, would it be comparable to billions of tourist dollars and job-holding people circulating in our economy?

7) Nevertheless, as far as KLIA2 is concerned, I stand for what I’ve wrote in my previous article. In fact there are some questions I would like to answer.


WHY NOT AIRASIA’s LCCT?

8) A new LCC terminal can be constructed by Sime Darby. It also can be operated by AirAsia. But it is not suitable to build in Labu because of the possibility of crash.

9) We can build a new basic and truly low cost terminal sits somewhere 30-40km radius from KLIA. But rather than to acquire a new land for the terminal, it would make more sense to utilise the land bank surrounding KLIA. After all, KLIA was designed to have 4 satellite terminals. Currently it has one. Therefore KLIA2’s purpose is not solely for AirAsia’s new home but to accommodate KLIA’s growth and vision.

10) How does KLIA2 fit into KLIA’s vision? The terminal has an integrated international concourse that will enable seamless transfer to domestic flights and vice-versa. In other words, it will provide more traffic to KLIA.

11) Not only that, due to limited runway capacity faced by Changi Airport, Soekarno Jakarta Airport and Bangkok Suvarnabhurmi Airport, ours KLIA is set to be a regional hub in Southeast Asia. The completion of KLIA2 will bring the airport’s total capacity to 85 million. But more importantly, the additional runway from KLIA2 will reduce congestion.

WHY DON’T WE UTILISE KLIA?

12) Many people complained that KLIA is so quiet. They assumed it is underutilised. Actually it is not. In fact it needs another terminal soon to support its growth. The present terminal handled 47m passengers last year- 7m more than its capacity. This has caused flight delays to spike; on average, 19% flights were delayed with an average delay time of 32 minutes in 2013. Obviously we can’t add 25 million passengers to already congested terminal. 

13) The reason why it feels so quiet because KLIA’s simple design disperses human traffic efficiently between the Main Terminal Building and Satellite Terminal via an automated three-car Aerotrain. Remember, this is world’s second best airport.

WHY DO WE NEED A BIGGER TERMINAL?

14) The original cost of the ‘fancy’ KLIA2 was RM1.9billion- not much different from the ‘basic’ RM1.8 billion LCCT proposed by AirAsia/SimeDarby. Therefore the original price tag of the new LCCT wasn’t an issue. It has become an issue when the cost of KLIA2 has been doubled due to revision to increase 71% of its original capacity. Is RM3.9 billion justified?

15) Admittedly RM3.9 billion is a lot of money. But if we proceed with the original size of KLIA2, we might have to build another LCC airport in the next 10-15 years. To build such airport at that time will cost us double or triple. Just look at the Electrified Double-Track Project. The original railway project from Johor Baru to Padang Besar was going to cost RM14bil. It was canceled because the Government want to save money. Later, it was re-introduced at a cost of RM12 bil for very much shorter tracks. So much of cent wise, ringgit foolish.

16) Do we want to repeat the same mistake again? Certainly not. Then it would be wise to build such infrastructure to meet the country’s needs for the next 50-100 years.

17) Another point is, KLIA2 is designed to be a retail airport. The large terminal is due to the large space for retail. Airport operator now realise that more revenue must come from this source. The reason is many middle income people from Southeast Asia choose to fly with Low Cost Carrier and they expect much more amenities once they land. When you consider there are 550 million people in ASEAN and only around 4% are currently flying, you can see the potential in retail. .

WHY NOT A TRULY LOW COST TERMINAL?

18) Why build a modern and fancy airport? Why not. If bus passengers can benefit from the state-of-the-art Terminal Bersepadu Selatanin BTS, why can’t low-cost air-travelers benefit from a full house level of convenience with aerobridges, walkalators, public transport hub with a direct train to Kuala Lumpur, an airside transit hotel and a public mall? In addition of that, airlines can reduce their operating cost from facilities such as self-check-in kiosk, self-check-in baggage, and dedicated aerobridge for aircraft boarding that will reduce headcount requirement without any sacrifice in overall level of service.

19) Remember, Malaysians have higher expectation when it comes to public services regardless of the amount they pay. Bagi free pun bising, inikan pula low-cost.

20) People are afraid the cost of travelling with LCC will be higher due to a lavish KLIA2. Eventually, airport charges will rise. MAHB is entitled to impose increase in three charges namely landing charge, aircraft parking charge and passenger services charge (PSC).

21) It will be absurd to think that MAHB will increase PSC to the same level with KLIA’s rate. Even if they do, we are talking about extra RM32 and RM3. To illustrate further, a return promotional AirAsia’s fare from KL to Sydney is RM750. As an international traveller, you will now have to pay RM782. As for domestic route, A return fare for KL-Langkawi is RM32. Add extra RM3, the amount will be RM35. Is it too much to asked for? Remember, this is the extreme possible scenario. After all, our PSC’s rate is among the lowest in the region.

22) How about landing and parking charge that will burden the airline? The increased rate will be offset by cost savings from the  efficiency gains, higher asset utilization and productivity gains from the sophisticated technologies. 

23) Considering cost benefits analysis, a hybrid terminal like KLIA2 will bring more value rather than a low cost terminal.

MatRodi

20140415-052334.jpg

20140415-052434.jpg

20140415-052421.jpg

Advertisements
Tagged , ,

12 thoughts on “KLIA2 and AirAsia….. Again

  1. Adnan says:

    Dear Sir,

    Your earlier statement “Tony needs Malaysia more than Malaysia needs him” is still very much valid. No individual is bigger than a nation.

  2. Roslan Bani says:

    Rudi, you again proof that you are a level headed and non impartial blogger. Your reasoning and facts are good eye opener to many. Thank you for your well written pieces…

  3. Emir says:

    Good article. Keep it up!

  4. Kurik says:

    Many people complained that KLIA is so quiet? Based on commentators in the West news portal in the wake of MH370 saga, some travelers who had visited KLIA said it is one of their favorite airports. It is the most stress-free airport they have ever visited. To them the place is surprisingly calm and quiet even at its peak and busiest hours. They had experienced a peace of mind while having a stay at the airport. They were complementary to Malaysian Immigration and customs officials which they regarded as strict but calm and polite.

    • Corbulo says:

      Well, let’s see.

      KLIA has dropped out of the list of the world’s top 10 airports, according to the Skytrax 2014 world airport rankings.

      Changi Airport is the #1 airport in the world, according to Skytrax. And according to other surveys and rankings too.

      How does Changi Airport Group (the operator of Changi Airport) achieve this, consistently? Surely, Malaysia Airports should be able to do just as well for KLIA, which is it’s flagship airport?

      A new “hybrid” Terminal 4 is now under construction at Changi Airport. When operational, I understand that all the LCCs (including AirAsia) will shift to Terminal 4. How does Changi Airport do this and keep the LCCs happy? Is it by taking their concerns seriously and by an unwavering focus on standards, quality and safety?

      • MatRodi says:

        Undoubtedly Changi is the best in almost everything. But for the category airport handled 40-50m per year, KLIA is no 2- only behind Incheon.

        However I concede much to do to improve KLIA’s ranking. Let see how KLIA2 can help in skytrex ranking next year.

        Thanks

      • Average Joe says:

        It is that sub-standard, disorganized and porous reban ayam LCCT which has costed KLIA its ranking. Understand?!

  5. IT.Scheiss says:

    MatRodi,

    The key difefrence between Tan Sri Gnalingam (WestPort), Tan Sri AK Nathan (Eversendal) and may I add Tn Sri Ananda Krishnan (Maxis & Astro) on the one hand and Tony Fernandez on the other is that Tony has has been controversially vocal in has antagonism against MAHB, some of which is unreasonable, incredible and unjust.

    He cliams that the passenger service change (PSC) levied by MAHB airports is detrimental to AirAsia’s business but does not make a fuss over higher PSC levied by other airports in the region.

    Tony Fernandez takes issue with the doubling of the cost of building KLIA2 as if the cost doubled for the original size of KLIA2 when it’s size had been increase by as much as 71% in certain aspects as MatRodi had pointed out.

    Tony Fernandez objects to the use of aerobriges at KLIA2 but AirAsia complies with the use of aerobriges at airports in other countries in the region.

    AirAsia claims that KLIA2 is “unsafe” allegedly due to undulations in the parking apron and taxi ways and whilst such undulations should not be taken lightly by the authorities, unless there are undulations in the runway, such minor undulations in the parkling apron and taxi ways would be very unlikely to damage the undercarriage of AirAsia’s planes.

    Any aircraft must be sturdy enough to withstand the heavy bump when it contacts the runway whilst landing, or is Tony tacitly admitting that only AirAsia planes are so fragile that they cannot withstand minor undulations when taxiing at low speed on the apron and taxi ways.

    These double standards are what make people like me not take him seriously and see him as behaving like a spoilt brat.

    As for the implicit or even covert racism in some comments about Tony. It’s unfortunate that the race dimension plays a big part in Malysian politics and from all sides.

    My late father who was with the police told me how his Malay and non-Malay colleagues respectively cheered for American boxer Muhammad Ali and British boxer Joe Bugner when their fight in Kuala Lumpur in 1975.

    This tells me that his Malay colleagues identified with Muhammad Ali who is Muslim, whilst his non-Malay colleages identified with Joe Bugner, a non-Muslim and by extension they regarded Muhammad Ali as proxy Malay and Joe Bugner as proxy non-Malay.

    It’s the same racial perception amongst some Malay and non-Malay Malaysians with regards a government-linked company Malaysia Airlines non-GLC AirAsia and it’s chief Tony Fernandez.

    To them, MAS is in finacial difficulties because its “Malay” and AirAsia is doing well because it’s “non-Malay”.

    This is what’s behind the racist comments on both sides and Tony’s behaviour only provides more fuel to the racism of one side, when most are quite neutral or indifferent with regards Tan Sri Gnalingam’s, Tan Sri AK Nathan’s and Tan Sri Ananda Krishnan.

    In fact, I’ve not been aware of the first two until MatRodi mentioned them, whilst Tan Sri Ananda Krishnan has been deliberately so low profile that I very rarely even think of him.

  6. Rush says:

    Hi Matt Rodi… This is a much much better article … its written fairly on the topic without favouring any parties….

    Also yes.. KLIA is a stress free airport compare to all the airports that i have been.

    Nice one…..

    • huda says:

      Agreed! Yes..it’s true that KLIA is a stress free airport and I dare say that it is among the best airports in the world that I’ve been to (based on my frequent travel to different countries around the world)

  7. games says:

    I am regular reader, how are you everybody? This article posted at this site
    is really pleasant.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: