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Ong says New LCCT to handle excess passenger load by 2011

Wednesday March 11, 2009

THE passenger load at the KL International Airport will exceed 20 million by 2011 and the new Low-Cost Carrier Terminal (LCCT) will cater to this increasing capacity, said Transport Minister Datuk Seri Ong Tee Keat.

He said the design capacity for the new LCCT would be around 30 million but the entire project would consist of various phases, which would allow room for further development.

"This is crucial because by 2011, we anticipate the delivery of bigger aircraft, including the Airbus A380 by Malaysia Airlines," he said, adding that the present LCCT would not be able to handle the growing passenger load.

Ong said the new LCCT would be ready by 2011 and the total cost was estimated at RM2bil.

He said Malaysia Airports Holdings Bhd would announce the financial details, which were still being ironed out.

On the rebate of 50% on landing charges which would be given from April 1 to all airlines that operate from Malaysia, Ong said he was optimistic that the move would boost the aviation industry and attract more airlines to use KLIA as a regional hub.

On whether such a move would affect Malaysia Airports financially, he said: "When you want to enjoy such incentives, you will certainly have to strike a balance.

"You need to woo more airlines to come and there will be some degree of reduction in your revenue."

Currently, he said, there are 57 airlines operating from both LCCT and KLIA.

Ong, who is also MCA president, said he was impressed with the government-linked companies' (GLCs) commitment to enhance corporate social activities in human capital development by establishing 10 non-profit private schools.

He said GLCs, which also operated private universities such as Uniten and MMU, were not only helping youngsters study at higher education institutions but were also making corporate social responsibility a culture in the country.

In another development, all parties have welcomed the estimated RM250mil allocated for the Penang International Airport expansion.

State MCA deputy chairman Eng Hiap Boon said the allocation would boost Penang's economy by attracting more tourists.

"With the upgrading of airport facilities, I hope we can attract (more) tourists to Penang.

"This also shows the Federal Government has not given up on Penang."

This article is a verbatim copy of the original article from The Star.