PRIME MINISTER LAUNCHES WORLD’S LARGEST PURPOSE BUILT-TERMINAL FOR LOW COST CARRIERS – klia2
24 June 2014
Sepang, 24 June 2014 – klia2 Terminal (klia2), the world’s largest purpose built terminal for low cost carriers was officially launched by the Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak today, augmenting Malaysia’s already strong presence in the global aviation industry.
klia2 began commercial operations on 2 May 2014 and has been operating smoothly, making klia2 one of the most successful airport openings. Since then, the terminal has successfully handled more than 3 million passenger movements and 24,000 aircraft movements. User and passenger feedback have been positive with most saying that they were delighted with the enhanced facilities and size of the new terminal. They were also excited about the ‘Airport in a Mall; Mall in an Airport’ concept.
klia2 was built primarily to address the soaring demand for low cost air travel. In the last ten years, low-cost air travel in Malaysia has consistently recorded an average of 25% year-on-year growth and has shown no signs of abating. Based on projected growth, klia2 is expected to be handling 25 million passengers by end of 2014. This mega terminal has the capacity to accommodate projected growth for the next ten to 15 years. It is able to handle 45 million passengers per year – three times more than the previous capacity of Low-Cost Carrier Terminal (LCCT-KLIA).
The development cost for this national infrastructure project was privately funded through Malaysia Airports’ 5-tranche Senior Sukuk Programme which was oversubscribed by 3.4 times and attracted a diverse group of investors. The construction cost per passenger was at RM89, the lowest compared to other peer international airport terminals such as Suvarnabhumi Airport, Heathrow Terminal 5, and Hong Kong International Airport. The average construction cost per passenger at terminals with capacity between 16 to 45 million passengers per annum around the world was around RM1,229.
The Prime Minister commended Malaysia Airports’ achievement in building a world-class infrastructure that is set to become a global benchmark for future terminals of its kind. klia2, together with KLIA main terminal has great potential as the region’s aviation hub and positions itself as the Next Generation Hub where there is seamless connectivity between low-cost and full service flights.
The terminal was built over 45 months or 3.75 years, another commendable feat when compared to Suvarnabhumi Airport (4.75), Heathrow Terminal 5 (5.75), and Hong Kong International Airport (6). klia2 development was part of the Economic Stimulus Package that saw involvement from many local consultant companies and contractors. While this presented multiple challenges especially in terms of stakeholder management, it allowed for these local companies to benefit from the experience of being involved a world-class mega project
YB Datuk Seri Hishammuddin Tun Hussein, the Acting Minister of Transport, who also gave a speech during the event spoke about the additional challenges faced in ensuring that klia2 remained on track for its commercial opening. To this end, Datuk Seri Hishammuddin appointed YB Datuk Abd Aziz Kaprawi, Deputy Minister of Transport to lead the klia2 Task Force which was formed in July 2013. Together with Datuk Abd Aziz, Datuk Seri Hishammuddin played instrumental roles in facilitating the development.
Tan Sri Dato’ Sri Wan Abdul Aziz Wan Abdullah, Chairman of Malaysia Airports in his welcome speech highlighted the significance of today’s historic event, “Today’s event is the culmination of one of Malaysia Airports’ efforts in continually striving to provide world-class airport services to all travellers. The successful development and opening of klia2 is a testament to how far we have journeyed in transforming from a traditional airport operator into a successful world-class airport business. With this, we consider that Malaysia Airports is now on par with, if not better than other established airport companies, particularly in this part of the world. We are confident that it will further boost our competitiveness in the global aviation industry.”
He also said that, “This was the first time Malaysia Airports had embarked on the development of a “greenfield” airport. The project required careful coordination, monitoring and interfacing of thousands of site activities and workers. The team worked day and night with almost 200 external stakeholders. The challenges and setbacks were too numerous to mention but despite them all, the team excelled and delivered all that was expected and more. To the Malaysian public, klia2 is a source of national pride, but to the team that made it happen it stands as a monument to their achievement and passion.”
Tan Sri Wan Abdul Aziz also thanked the Government for its support in promoting the aviation industry, specifically to the Prime Minister and Acting Minister of Transport for their special attention towards the progress of klia2 development.
During the launch, klia2 was officially inducted into the Malaysia Book of Records for the ‘Biggest Purpose Built Terminal for Low Cost Carriers & First Airport Terminal Sky Bridge'. YBhg Tan Sri Danny Ooi, Founder & Managing Director Malaysia Book of Records presented the certificate to the Chairman of Malaysia Airports, witnessed by the Prime Minister.
The Prime Minister also launched Sama-Sama Express – Terminal Airside Transit Hotel (Sama-Sama Express), located in the international departure area. Sama-Sama Express offers 70 modern, chic and comfortable rooms is the place. It also provides a rejuvenating experience and ultimate convenience for business and leisure travellers who are transiting between flights. Its strategic location allows guests to check-in into the hotel without having to clear Malaysian Customs and Immigration if they are on a layover between flights.
At the end of the ceremony, the Prime Minister launched gateway@klia2, the landside mall located between the drop-off point and the Main Terminal at klia2 Terminal. This ‘Airport in a Mall; Mall in an Airport’ concept merges a retail mall experience with air travel retail to become the gateway to and from Malaysia, allowing travellers the opportunity to take off and land directly at a world-class mall. It also caters to meeters, greeters, staff workforce and residents from the surrounding residential districts of Sepang, Putrajaya, Bangi and Nilai.
The mall has been successful in attracting many established retail brands such as Hush Puppies, Crocs, Nikon, Jaya Grocer, and Lazo Diamond to name just a few, together with a number of new local brands.
This ‘Mall within an Aiport’ concept also applies to the klia2 terminal building itself as Malaysia Airports wanted to maximise its commercial offerings. It has about 35,000 sqm of floor space dedicated to retail, F&B and service outlets. It is also among the few international airports with a high percentage of commercial space (20%). For most other airports the percentage is in single digit. klia2 Terminal has 225 retail outlets with 118 lots allocated for retail offerings, 81 lots for F&B and 26 lots for services. Starbucks Coffee, The Body Shop, and Royal Selangor are just some of the well-known brands available.
During the same event, the Prime Minister also visited the Express Rail Link Station at gateway@klia2 where he officially launched the KLIA Ekspres and KLIA Transit services to klia2. With a journey time of only 33 minutes between KL Sentral and klia2, the KLIA Ekspres train service is the fastest airport transfer for passengers using the new airport terminal. Passengers travelling to klia2 or KLIA will be charged the same fare of RM35, as both are considered terminals of the same airport.