Malaysia Airports Clarifies (2)

Kuala Lumpur, 20 January 2009

Malaysia Airports Holdings Berhad (MAHB) has noted that comments have been made whereby we are duty bound to provide clarification.

DELAY IN EXPANSION OF CURRENT LCCT

  1. MAHB has always intended for the current LCCT to be a temporary terminal. AirAsia, having been involved in its design process, has always been aware of the fact that should its business grow, a new terminal will be built. This was decided upon at the very design stage of the current LCCT.

  2. The current LCCT was built according to AirAsia's design and requirements. It had no aerobridges, no bussing facilities, dedicated check-in counters, and dedicated baggage system. More importantly, based on AirAsia's business model, the terminal and apron were designed for narrow-bodied aircraft fleet only. To further enhance passenger comfort, MAHB also incurred additional costs in constructing covered walkways for passengers, a food garden and expanded its vehicle parking bays.

  3. On 6 July 2007, a presentation was made to the Authorities about the need for an expansion to the current LCCT, and a serious consideration for a new permanent LCCT site.

  4. Subsequently, AirAsia submitted their own presentation to the Authorities citing that there is no need for a new LCCT as they preferred to stay where they were. Instead, they proposed that the LCCT be expanded onto the Pos Malaysia and KLAS premises.

  5. MAHB had advised that this was not a good idea, as it would not provide room for further growth and would instead create congestion in the operational areas. The Authorities concurred that a new permanent LCCT should be built to cater for future growth. In the meantime, it was decided that MAHB proceeds with expansion plans for the current LCCT to address immediate requirements.

  6. Subsequently, while awaiting Government approval for funding for the expansion, MAHB decided to proceed with the construction using its own funds. It was agreed that this funding would be taken into account in finalising its financial restructuring plan. Immediately after this was decided upon, construction began in April 2008.

  7. This expansion will provide greater convenience to passengers when completed in March 2009.