Jan 6, 2007

The Low-Cost Carrier Terminal (LCCT) will be expanded to enable it to become an international hub for budget carriers in the region.

Transport Minister Datuk Seri Chan Kong Choy said the terminal, which is capable of handling 10 million passengers a year, would be upgraded to meet passenger demand especially for long-haul traffic.

He said Malaysia Airport Bhd (MAB) was expected to soon submit a proposal to the ministry on the expansion, including enabling it to handle wide-body jets as well. Chan was speaking at the launch yesterday of AirAsia X, a joint venture between AirAsia and Fly Asian Xpress (FAX) to operate budget long-haul flights to the United Kingdom and China.

“The venture will provide stimulus to the Malaysian economy, especially in terms of tourism, which has a significant multiplier effect on the economy,” he added.

Chan said the success of the project would also enhance the local tourism industry, and the launch of AirAsia X was timely and would boost tourist arrivals in conjunction with Visit Malaysia 2007.

He said the success of AirAsia X would showcase to the world another world-class achievement by Malaysia.

“The Government is committed to creating the requisite business environment and providing the necessary support to ensure our companies compete successfully globally,” he added.

Chan also said that Malaysia and Singapore had agreed in principle to be more liberal in their aviation arrangements.

He said the details of the arrangement would be discussed between senior officials of the two countries in the first quarter of this year.

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