Largest Mitsui Outlet Park to be built in KLIA

MALAYSIA Airports Holdings Bhd (MAHB) and Mitsui Fudosan Co Ltd will build the first upscale Japan factory outlet in Southeast Asia at the Kuala Lumpur International Airport in Sepang.

To be known as Mitsui Outlet Park KLIA, it will be built on a 20.25ha site, complete with F&B and entertainment facilities as its complementary components are based on strong themed attractions such as Knowledge and Attractions, Prime Time Complex and World Food Expo.

The park, the first Mitsui Outlet Park in Southeast Asia and 14th for Mitsui, will be developed over three phases at an estimated gross development cost of about RM335 million.

It will boast a total lettable area of about 47,000 square meters upon full completion, thus positioning the outlet park as the largest within Mitsui's stable of outlet parks.

The first phase of development is expected to begin within the first quarter of next year and is expected to open its doors to the public by end of 2014.

"The outlet park will offer a wide selection of leading brands including luxury brands, popular select shops, high grade and top Asian fashion, sports and outdoor items, fashion accessories and gifts at prices that are guaranteed to be below their recommended retail prices," MAHB said yesterday.

More than 240 famous international designer brands will be invited based on their presence in existing Mitsui Outlet Parks in Japan and China.

It will also offer top Asian fashion from Japan, South Korea, Hong Kong and Malaysia, thus setting it apart from the other retail centres in Malaysia in terms of breadth of brand diversity, it added.

Mitsui, a leading real estate developer in Japan, has been established since 1941 with global operations in the US, UK, Singapore and China.

It is mainly engaged in the development of shopping centres, hotels and office complexes.

The two companies signed a memorandum of understanding on the project yetserday.

"One of the most important benefits from this project is the opportunity to further expand our non-aeronautical or commercial revenue base, in line with our '2010-2014 Business Direction: Runway to Success'," MAHB managing director Tan Sri Bashir Ahmad said.

By Business Times

Retailers can bid for KLIA2 space next year

SEPANG: Retailers interested to be part of the new KLIA2, slated to be open end of 2012, can bid for space through two open tenders next month and February next year.

Malaysia Airports Holdings Bhd (MAHB) senior general manager of commercial services Faizah Khairuddin said the tenders would be placed on MAHB website and major newpapers in early December and another one on February 15.

The tender for next month will be open from December 5 to 9.

"We will have the first batch in December and hope to get at least 20 to 30 per cent of the retailers then. The next one will be open in February after Chap Goh Meng celebrations," she said at a press conference after a preview on KLIA2 retail space here, yesterday.

Faizah said KLIA2 will not automatically take in the retailers from the present low cost carrier terminal.

"These retailers would also have to go through the open tender process like the rest," she said.

According to her, the tendering process will be done in two batches because of the holidays in between, including New Year and Chinese New Year.

The bidding process would take between four to six weeks.

"May the best man win and in this case, companies that are outcome-driven would likely be given a chance," she said.

Faizah said the whole tendering process would be completed next July, just in time for the airport's opening, scheduled by the end of next year.

The overall retail space up for grabs at the KLIA2 is 225 outlets with a total of 35200 sq m space.

One operator is allowed not more than five oulets.

"Out of this space, 95 per cent would be for commercial purposes while the rest for upcoming small and medium enterprises," she said.

On the commercial side, Faizah said 50 per cent would be for retail, 40 per cent for food and beverages, and the rest for services.

Retailers interested to bid for the retail space at the new airport, can can go to www.malaysiaairports.com.my or www.klia2.com.my.

By Business Times

Agreements inked to develop Sungai Besi airport land into Bandar Malaysia

KUALA LUMPUR: Several agreements were inked Wednesday, paving the way for the old Sungai Besi airport land to be transformed into Bandar Malaysia a strategic development for long-term national growth.

Bandar Malaysia will have several attractive elements to further strengthen Kuala Lumpur's global competitiveness as cities compete to attract international investors and businesses, a statement on the 1Malaysia Development Berhad (1MDB) website said.

1MDB, the master developer for Bandar Malaysia, signed, among others:

* Sale and purchase agreements with Federal Land Commissioner for the transfer of 495 acres of Sungai Besi airport land to 1MDB;

* Sale and purchase agreement with the Mentri Besar Incorporated of Negri Sembilan for the purchase of 750 acres in Sendayan, which is the replacement site for the Royal Malaysian Air Force (RMAF);

* A master relocation agreement with the Defence Ministry and Home Ministry to develop eight replacement sites.

Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop witnessed the signing at the Economic Planning Unit of the Prime Minister's Department here.

Bandar Malaysia aims to promote livability as a distinctive character of Greater Kuala Lumpur. It will be a mixed development filled with livable space for work/life balance, such as open green space and people's avenue as well as higher learning institutions, the statement said.

This is the third game-changing use of the historical site. In 1956, it served as the first international airport, opening up the aviation, travel, tourism and hospitality industries.

It was also the birthplace of the RMAF from where it grew to become an ultra modern air force.

By The Star

1MDB inks deal to redevelope Sungai Besi airport

1Malaysia Development Bhd, a sovereign fund, signed agreements today to transform Kuala Lumpur’s former Sungai Besi military airport into a township development.

The Federal Land Commissioner will transfer 495 acres of land to 1MDB, as the fund is known, according to a statement on its website. 1MDB will be master-planner for the project which will be known as Bandar Malaysia, it said.

The Royal Malaysian Air Force signed a separate agreement for a replacement site in Sendayan, it said.

By Bloomberg

Sarawak offers land to AirAsia for LCCT

KUCHING: The Sarawak government has offered a piece of land next to the Kuching International Airport to AirAsia Bhd to build a dedicated low-cost carrier terminal (LCCT), said Deputy Chief Minister Tan Sri Dr George Chan.

He said the LCCT would not only draw more air travellers but also boost the state's tourism industry and double its revenue.

“The state government has offered land to AirAsia to set up an LCCT here. Now, AirAsia just need to build the terminal. They (AirAsia and the state government) are talking seriously,” Dr Chan, also the state's Tourism and Heritage Minister, told Bernama yesterday.

AirAsia has plans to turn Sarawak into a low-cost air travel hub with extensive domestic and international connections.

The plan to set up an LCCT in Sarawak was because the airport tax of RM51 imposed at the KL International Airport was considered too high by travellers.

Dr Chan urged Malaysia Airports Holdings Bhd (MAHB) to seriously consider reducing the airport tax and charges so as to develop new traffic and to further promote the state's tourism industry.

He said the high airport tax had hindered AirAsia from increasing flight frequency and introducing new routes in the state.

“It is a chicken and egg situation. MAHB should seriously consider lowering the airport tax or charging a minimum rate. It is better than having none, especially when the Miri, Sibu and Bintulu airports are not very busy.”

By Bernama

Perak may have its own LCCT, says MB

The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state.

"We have had a few discussions with AirAsia Bhd on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir told reporters in Sepang yesterday.

The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry was accompanying Sultan of Perak Sultan Azlan Shah and Perak Regent Raja Dr Nazrin Shah on a three-hour official visit of the LCCT and AirAsia Academy in Sepang yesterday.

Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project.

He ruled out the possibility of turning the existing Sultan Azlan Shah airport in Ipoh into an LCCT because of congestion issues.

Currently, only Malaysia Airlines' low-cost arm Firefly services the Ipoh airport. At one time, however, MAS was flying in its Boeing 737 there.

"We have always, always said that we need a low-cost airport or terminal in the north (of Peninsular Malaysia). The airport has to know if there are airlines that will come ... we have said we can come. Now it's up to the airport (operators) to decide if that makes sense," AirAsia chief executive officer Datuk Seri Tony Fernandes said when asked to comment on the possible terminal in Perak.

By Business Times

Budget for KLIA 2 increased

Malaysia Airports' board of directors has mandated RM2.5 billion for the overall construction cost of Kuala Lumpur International Airport 2.

Malaysia Airports Holdings Bhd (MAHB) is ready to spend some RM500 million more than the earlier budgeted RM2 billion for total construction cost of Kuala Lumpur International Airport 2 (KLIA 2).

Prime Minister Datuk Seri Najib Razak had said in his second stimulus package announcement in March last year that the new permanent low-cost carrier terminal (LCCT) would cost RM2 billion.

The airport operator said yesterday that its board of directors had mandated a sum of RM2.5 billion for the overall construction cost of KLIA 2.

MAHB chief financial officer Faizal Mansor, however, stressed that the RM2.5 billion budget was not final.
"While we will try to keep it below the budget, it is important to us to get the terminal completed well," he said at a briefing to announce the group's third quarter results in Sepang, Selangor.

While some big contracts have been dished out, Faizal declined to reveal how many more would be awarded.

KLIA 2 is now being planned to have double the initial size of 120,000 sq m.

While the new terminal is only half the size of KLIA's main terminal building, it is designed to have more than double the commercial space of the main terminal building.

After the recent completion of a retail optimisation plan at the KLIA main terminal building, about 7 per cent of the building is now commercial space compared to KLIA 2, which is expected to have about 20 per cent commercial space.

"What this means is that while the cost of running KLIA 2 will be half that of the main terminal building, it will be more viable, more sexy," Faizal said.

On its results for the third quarter ended September 30 2010, MAHB said net profit was down by almost 26 per cent. This was largely due to accounting losses it had to recognise in that period because of the adoption of the Financial Reporting Standard (FRS) 139.

MAHB made RM61.8 million net profit compared with RM83.4 million a year ago. The loss arising from adopting FRS 139 was about RM30 million.

Part of this loss came from recognising concessions payable at fair value for the Sabiha Gokcen International Airport in Istanbul, Turkey.

Year to date, the group recognised RM54 million accounting losses from the associate. MAHB has projected that the full-year figure will touch RM80 million.

Group operating profit in the period reviewed was up 12 per cent to RM128.3 million compared with RM114.4 million in the previous corresponding period.

By Business Times

Subang - best choice for city airport

ONE idea that should have been given more prominence in the Economic Transformation Programme (ETP), in the context of “Greater KL”, is the creation of a city airport.

Specifically, turning the already existing Subang airport into a city airport, with more aircraft plying it, including (albeit, in a limited way), commercial jet aircraft.

City airports are a feature of many major cities the world over and they seem to nicely complement their major airports.

What sets this idea apart from other transport-related ones in the ETP is that it requires so little to get it started. That’s because we already have a city airport in form. What is needed is a mere tweaking of policies. At present, the Sultan Abdul Aziz Shah Airport in Subang only allows the operations of propeller aircraft (for commercial passenger flights).

Turning the Subang airport into a full-fledged city airport does not require the heaps of investments other transport-related plans mentioned in the ETP.

Furthermore, it requires very little changes to an already choking city. One just has to imagine the major construction works that will be carried out to build the mass rapid transit system over the next few years. And, the astronomical ball park figure of RM50bil to get that project up and running. Until today, it is unclear who exactly is going to fork that money out.

To turn Subang airport into a city airport however, will require a decent dose of political will and careful explanation to interested parties why this is a good idea now.

To be sure, this idea is not new. Everyone following the aviation industry will know of that one very entrepreneurial airline industry individual who had lobbied long and hard for his budget airline to use Subang as its base. The idea even then, made perfect sense but it was never to see the light of day, for one reason or another.

One of those reasons was a determination by the Government to make KL International Airport (KLIA) a success.

Hence the question is, will a move to have a city airport be detrimental to KLIA? From the standpoint of airport operator, Malaysia Airports Holdings Bhd (MAHB), the concern will surely be that its earnings from KLIA could be cannibalised from giving Subang more flights.

Well, that’s one way of looking at it. Another way to see it is that Subang can play a complimentary role to KLIA, just like how most city airports in bigger cities around the world do. In London, Chicago, New York, Tokyo and Shanghai, the city airports have posed no major threats to the main airports in those cities, as the city airports play a sort of niche and complimentary role. Furthermore, it is very likely that having a city airport would create new revenue streams for MAHB.

City airports tend to cater to shorter flights and appeal largely to businessmen and professionals making short flights to attend meetings.

A well-located city airport (like the one in Subang) will help reduce regional business travel time significantly, which in turn could enhance productivity levels of Malaysian professionals and businessmen.

Subang airport’s transformation into a city airport has other advantages. Since 2008, work had begun to transform it into a modern day airport by its operator Subang Skypark Sdn Bhd, with much success, judging by the growing number of passengers travelling through it. The area is also the home of the Malaysian International Aerospace Centre.

It is located not too far away from the KTM Komuter station in Subang Jaya. This poses the possibility, again without a massive amount of capital expenditure, to link the airport up with the city via KL Sentral. Imagine the connectivity and time-savings for a business traveller flying in from say, Bangkok or Singapore for a meeting in Shangri-La hotel in downtown Kuala Lumpur. Hence more little more needs to be done other than a change in government policies, to give this facility a chance to become a full-fledged city airport.

Jet aircraft plying Subang however, had been contentious in the past for another reason – some residents of Subang didn’t quite like it, and understandably so. But smaller narrow-bodied jet aircraft should be less offensive to the residents.

Also, to be noted is that Subang airport already has jet aircraft flying into it, in the form of private jets and Transmile Group Bhd’s cargo planes. Furthermore, if indeed, Subang airport is made the city airport, the township of Subang should see a multiplier effect as the connectivity would bring in more travellers needing services such as eateries and hotels. Property prices in Subang will also likely to benefit. All that may be needed is careful planning and proper communication and the chances are, there would be more people supporting the idea of making Subang airport, Greater KL’s much needed city airport.

Deputy news editor Risen Jayaseelan, who lives less than 20km from the Subang airport and who loves to travel into the region, openly declares that his arguments for more flights out of Subang Airport is partly driven by personal interests.

By The Star (by Risen Jayaseelan)

New low cost carrier terminal to cost more

Prime Minsiter Datuk Seri Najib Tun Razak signing on the plague after the ground breaking ceremony at the beginning of the construction of KLIA2 yesterday. Transport Minister Datuk Datuk Seri Kong Cho Ha looks on. - Starpic by Chan Tak Kong

SEPANG: Malaysia Airports Holdings Bhd (MAHB), which had an initial budget of RM2bil to build the new low-cost carrier terminal (LCCT) may have to pay more for the terminal due to delays in placing out contracts.

Managing director Tan Sri Bashir Ahmad Majid said there were still some contract packages that were yet to be finalised.

“We see this as good delay because MAHB wants to ensure it gets the right contractors at the most affordable price,” Bashir told reporters after the ground-breaking ceremony for the new LCCT yesterday.

However, he declined comment on the additional cost.

The new terminal, to be known as KLIA2, is expected to be funded by MAHB’s proposed sukuk (Islamic medium-term notes programme of up to RM3.1bil and commercial papers programme of up to RM1bil).

With KLIA2 and the 39 airports that MAHB currently managed in Malaysia, the airport operator would be able to handle at least 60 million passengers annually by 2014, Bashir said.

“KLIA2 is expected to handle 45% to 55% of the (total number of) passengers, mainly budget travellers,” Bashir said.

Located 2km from the current main KLIA terminal building, KLIA2 is slated to be completed by April 2012 and would be the largest LCCT in Asia with an initial handling capacity of 30 million passengers.

Bashir said over the past 10 years, low fare travel had grown and today constituted 16% of total travel in the Asia-Pacific region and 43% in Malaysia, and this percentage was expected to increase.

The 242,000 sq m new terminal is four times bigger than the current LCCT, which occupies 60,000 sq m and can only handle 15 million passengers yearly.

On the aerobridge, Bashir said MAHB was in favour of building it but would leave the decision to the budget airlines as they feared it might impact turnaround time for their planes. He added that besides the turnaround consideration, there was also a charge of RM85 for each plane using the aerobridge.

On the new terminal’s interconnectivity, Bashir said KLIA2 would be connected by buses and express rail link.

“There are plans for railway connection in time as well,” he said.

By The Star

UEM-Bina Puri venture wins RM997m LCCT deal

UEM Construction-Bina Puri joint venture will be the main contractor for the construction of the new LCCT at KLIA in Sepang.

UEM Construction Sdn Bhd (UEMC) has won a RM997.23 million contract with Bina Puri Holdings Bhd to build a much-anticipated permanent low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang for airport operator Malaysia Airports Holdings Bhd (MAHB).



MAHB told Bursa Malaysia yesterday that it had appointed the UEMC-Bina Puri joint venture (JV), a 60:40 JV that was established in February, as the main contractor for the construction of the new LCCT.

In a separate filing to the stock exchange, Bina Puri group managing director Tan Sri Tee Hock Seng said the company accepted the letter of award yesterday in the name of UEMC-Bina Puri JV to undertake the design, construction and maintenance of the new LCCT's main terminal building, satellite building, sky bridge and piers.

This works package is expected to be completed within 20 months.

The contract is expected to contribute positively to Bina Puri's earnings for the financial year ending December 31 2010.

"With the award, the group's current book order stands at RM2.7 billion. The total value of contracts secured this year is RM1.51 billion," Bina Puri said.

Its share price gained 31 sen to RM1.42 yesterday on news of the award.

Meanwhile, UEM Group managing director and chief executive officer Datuk Izzaddin Idris said in a statement that the group was privileged to have clinched the mega project, helping its construction order book grow to RM3.7 billion.

UEMC is a wholly-owned subsidiary of UEM Group.

"Based on our track record in building the KLIA in Sepang and other infrastructure assets, we strongly believe that we will deliver an LCCT complex that is of global standing," said Izzaddin.

MAHB managing director Tan Sri Bashir Ahmad recently told reporters that the new LCCT that will be ready by March 2012 will be bigger than previously planned.

However, details of the revised cost, size and capacity of the new LCCT have yet to be announced. The project was originally supposed to cost RM2 billion and cater for 30 million passenger per year, with potential capacity for 45 million passengers per year.

Prior to yesterday's main contractor award, MAHB had given out two other contracts for the new LCCT project. The first, worth RM362 million, was given to WCT Bhd last December for site preparation, earthworks and main drainage. In January, a RM291 million contract was awarded to Gadang Bhd to carry out earthworks for the runway and taxiways.

By Business Times

Aero Mall to liven up Senai airport

Developments at the Senai International Airport in Johor are expected to accelerate following the set-up of the Aero Mall, a stand-alone and external airport mall.

"There are now RM2.5 billion worth of ongoing projects at the airport area," Senai Airport Terminal Services Sdn Bhd (SATS) chief executive officer Datuk Mohd Sidik Shaik Osman told Business Times in an interview.

They include the RM2 billion Senai High Tech Park and the Free Zone Logistics and Aerospace Industrial Park.

Sidik said the Aero Mall, which will open on July 1, will set a new wave of development for SATS, which has 1,120ha surrounding the Senai airport.

The RM80 million, 173,338 sq ft mall is an integrated lifestyle complex adjoining the airport. It has 29 retail outlets and 30,000 sq ft piazza area. Some 70 per cent of the lots have been taken up for shopping, entertainment and dining facilities.
Sidik said that there are also plans for a cineplex and a digital complex.

"When we took over the airport in 2003, it was just a building to service passengers flying to Kuala Lumpur. We have expanded service to include flights to Penang, Kota Kinabalu and Kuching, and other facilities.

"Malaysia Airlines and AirAsia operate some 220 flights a week (out of the airport) and we hope that will be increased as we work to grow air traffic and passenger volume," Sidik said.

"Passenger traffic at the airport is now more than two million, including meeters and greeters. We expect this to double in the next three years."

Sidik expects new developments in Iskandar Malaysia in the state to contribute to the airport's growth.

Ongoing projects at Iskandar Malaysia include Legoland, premium factory outlets, universities and hospitals, targeted to be ready by 2012.

"Iskandar is expecting some four million visitors a year. We think this will increase air traffic and passenger volume. The airport can handle up to 4.5 million passengers a year before it requires any expansion."

On the Senai High Tech Park and the Free Zone Logistics, Sidik said that SATS might undertake a fund-raising exercise, in the form of internal funds and loans, to get the projects moving.

He is ambitious about both projects and is confident that they will attract investors.

The high-tech park has drawn interest from investors in the US, Europe and China who are in various sectors, including semiconductor and solar energy.

There are confirmed investments from China's EQ Solar Technology International Sdn Bhd, which will invest US$500 million (RM1.6 billion) to produce solar modules, and leading industrial gas provider MOX-Linde Gases Sdn Bhd, which plans to set up an industrial gas separation plant.

"We have incentives to attract investors. Those who come into the Iskandar region will enjoy low income tax, among other things," Sidik said.

Still, SATS may face stiff competion from Singapore, the KL International Airport and the Port Klang Free Zone, which are also aggressively attracting investors through various incentives.

By Business Times

SkyPark will revitalise Subang

The RM40 million facelift undertaken by the SkyPark Subang Terminal will turn the facility into not only a destination for travellers but also for the surrounding community.

"Ultimately, we envision SkyPark Subang as a major domestic and international transportation hub, served by major modes of transport and modelled to reflect contemporary lifestyle elements," its executive director Tan Sri Ravindran Menon said.

He said recently that SkyPark wanted to reinstate prominence to Subang as a global aviation hub.

Rejuvenation of the terminal in Subang is part of a three-year overall plan with three thrusts, the first of which was achieved with the launch of SkyPark Subang Terminal.
The second thrust will be to develop a regional aviation centre, a 30-acre development that includes maintenance, repair and overhaul facilities, dedicated hangarage and aviation-related industries while the third thrust will be construction of a leisure mall with an aviation theme.

The revitalised SkyPark Subang terminal at the Sultan Abdul Aziz Airport was launched by Prime Minister Datuk Seri Najib Razak last week.

By Business Times

SATS to unveil first component

SENAI: Senai Airport Terminal Services Sdn Bhd (SATS) will launch the first of three “components” of the multi-billion ringgit Senai Aviation & Airport City project by year-end.

An artist’s impression of the hotel project

Deputy chief executive officer Shahrull Allam Abdul Halim said the first component, on a 323.74ha site, comprised residential, commercial and hospitality amenities.

The other two components in the mixed development project are an air cargo logistics centre and a high-tech park, each occupying a 404.68ha site.

“The first component’s launch involves the commercial and hospitality segment while the residential side will take place when the time is appropriate,’’ Shahrull told StarBiz in an interview.

He said the initial launch would cover a 12.94ha site, of which 10.52ha would be for the commercial precinct and 2.42ha for the hospitality section.

“The hospitality component, comprising two hotel blocks and a convention centre, will be developed in three phases and the project will take 24 months to complete,’’ he said.

The development of the hotels and the convention centre will come under Johor-based Tiong Nam Logistics Holdings Bhd, according to Shahrull.

Shahrull said apart from factory outlets, the commercial area would also have logistics and warehousing facilities.

“We want to position the commercial area as a regional wholesale centre to attract buyers from countries in the region,’’ he said, adding that an international wholesale operator with a similar operation in Dubai had decided to invest in the commercial project and would manage the wholesale centre while SATS would provide the land.

SATS subsidiary Enigma Harmoni Sdn Bhd, which is linked to billionaire Tan Sri Syed Mokhtar Al-Bukhary, has received approval from the Kulai Municipal Council for the airport city project.

MMC International Holdings Bhd, a wholly-owned subsidiary of Syed Mokhtar’s MMC Corp Bhd, has stakes in Senai International Airport, Port of Tanjung Pelepas and Johor Port.

The entire development, which is located next to the Senai Airport, also includes a Customs Inspection Quarantine Complex and will take about 10 years to complete.

The project is estimated to cost about RM1.2bil with the Senai Airport Hi-Tech Park set to be the second high-tech park in the country after Kulim Hi-Tech Park in Kedah.

Opened in 1974, Senai Airport is managed by SATS, which took over the operations of the airport from Malaysia Airport Holdings Bhd in 2003.

By The Star (by Zazali Musa)

Subang SkyPark eyes up to RM7m revenue from terminal

SUBANG SkyPark Sdn Bhd is confident of recording RM6 million to RM7 million in revenue from its refurbished Skypark Subang Terminal (SST), formerly known as Terminal 3, by May next year.

Executive director Tan Sri Ravindran Menon said the city airport operator was confident of achieving its target with the completion of works at SST by October this year.

"The RM40 million terminal is 90 per cent completed and destined to become Malaysia's premier airport in the city," he said at a media sneak preview of the SST in Petaling Jaya, Selangor yesterday. When fully operational, the SST is able to accommodate an average of 60 flights daily, comprising of local and regional arrivals and departures, he said.

Presently, Berjaya Air and Firefly are using the terminal for international and domestic flights.

The 150,000-square foot SST is expected to handle 2.5 million passengers by end of this year, Ravindran said.

Currently, passenger numbers are peaking at 60,000 a month, he said.

The company is involved in the RM300 million redevelopment plan for the Subang airport, consisting of RM40 million for phase one, RM110 million for phase two and RM150 million for phase three.

Ravindran said the three phases included a city airport for turbo-prop aircraft, fixed base operations for business jets, and maintenance, repair and overhaul facilities.

The three phases are scheduled for full completion by end-2011, he said.

By Bernama

MAHB hiring firms to help build budget terminal

MALAYSIA Airports Holdings Bhd (MAHB) is in the midst of hiring consulting and architecture firms to help build the new permanent low-cost carrier terminal (LCCT) at the KL International Airport (KLIA) in Sepang.

Senior general manager of operations Datuk Azmi Murad said construction works should start by year-end.

He, however, did not say if MAHB had started accepting bids for the construction.

Azmi was speaking after the launch of a flight information speech system called "KLIA One Touch" in Sepang yesterday.

MAHB managing director Datuk Seri Bashir Ahmad said last month that the airport operator was confident of completing the new LCCT and a new runway in two-and-a-half years once work starts.

He estimated that the development cost would not exceed RM2 billion.

The new LCCT can handle up to 30 million passengers a year, with the capacity for expansion of up to 45 million passengers.

Azmi said total passenger arrivals at the KLIA and the current LCCT dropped 0.6 per cent to 8.7 million arrivals year-on-year in the first four months of 2009.

During the January-April period, there was a 16 per cent drop in passenger traffic at the KLIA to 4.7 million, but this was offset by a 31 per cent growth at the LCCT.

Nevertheless, Azmi said he is happy because there has been no cancellations arising from the influenza A (H1N1) outbreak.

"People are cautious of travelling. If they need to, the option is to go for a lower cost of travel. That's why there's negative growth at the main terminal. But I don't see any contraction due to the H1N1 outbreak," he added.

Users can now get flight information directly from KLIA One Touch by calling 03-8776 0888.

The 24-hour system is a self-service interactive voice response provided by NuSuara Technologies Sdn Bhd, a subsidiary of the Minister of Finance Inc.

For arrival flights, queries can be made based on either flight number or flight's origin city. For departures, queries can be made based on flight number or flight's destination city.

"KLIA One Touch is capable of handling 30 calls at any one time with two language options available - Bahasa Malaysia and English," NuSuara chief executive officer Datuk Dr Ramly Abbas said.

By Business Times (by Zuraimi Abdullah)

Work on new LCCT to start in mid-year

Construction of the new RM2bil low-cost carrier terminal (LCCT) is expected to commence by mid-year for completion in the third quarter of 2011, says builder and operator Malaysia Airports Holdings Bhd (MAHB).

MAHB managing director Datuk Seri Bashir Ahmad says the project will be funded by the company via loans.


Datuk Seri Bashir Ahmad briefing the media on the new LCCT-KLIA.

“We have no debts so it is no problem to raise funds,” he said at a media briefing in Subang yesterday.

To this end, Bashir says the company already has the offer letters.

Contracts to build the new terminal will be tendered out over the next few months, he adds.

The new LCCT, to be built near the KL International Airport (KLIA), will be able to handle up to 30 million passengers when operational, with the potential for 45 million passengers per annum.

Low-cost carrier AirAsia Bhd and Sime Darby Bhd’s proposal to build a new LCCT costing RM1.6bil in Labu, Negri Sembilan, was rejected by the Government last month.

Bashir says the current LCCT will be converted into a cargo terminal.

As for possible lower charges at the new LCCT, Bashir says: “All aeronautical charges will be decided by the Government.

“Our charges are not related to the cost of the new terminal. They (charges) do not go up automatically when we build new terminals.”

To a question on why the cost is higher than the originally proposed RM1.6bil by AirAsia and Sime Darby, Bashir says this is because the terminal will be “bigger” and with more facilities.

“The design of the terminal, to be located 1.5km away from the main KLIA terminal, will have to be worked out but the construction of the new runway can start immediately.

“We are talking to the airlines and finalising the design,” he says, adding that the terminal can be used by both low-cost and full service carriers.

“AirAsia has seen the location of the new LCCT and is happy with it. It has made it clear that it doesn’t want to use aerobridges. We will take its views into consideration but will also be talking to other airlines which may want to use aerobridges. We will see how we can provide that.”

To a question, Bashir says MAHB is in discussions with Express Rail Link Sdn Bhd to extend its current connection to the new LCCT.

On the 50% rebate in landing charges as announced in the mini budget earlier this week, Bashir says it will not affect the company’s bottomline. “We are working with the Government on a revenue-sharing basis for the landing charges,” he says.

MAHB currently makes RM180mil to RM200mil a year from landing charges.

Responding to another question, Bashir says MAHB had in August 2007 appointed the joint-venture company of Netherlands Airport Consultants BV and KLIA Consultancy Services for the preparation of a National Airport Masterplan for the country, which included the development of a LCCT.

“It took us 16 months to study this (LCCT plan). We did it professionally,” he adds.

Separately, he says he anticipates “0% growth” this year for its airports, owing to the economic slowdown which will affect passenger movement. “We do expect to remain profitable.”

Other than KLIA and other domestic and international airports in Malaysia, MAHB also owns stakes in several foreign airports, including India’s Delhi International Airport. It also has other businesses, such as retail.

By The Star (by Yvonne Tan)

New RM2b LCCT to be ready by Q3 2011

The newly proposed Low Cost Carrier Terminal (LCCT) to be built by Malaysia Airports Holdings Bhd is expected to start construction by the middle of this year and completed by the third quarter of 2011.

The airport, which will cost RM2 billion, is expected to be fully operational after that and would be able to cater to 30 million passengers per annum (mppa), with the potential to expand to 45 mppa, MAHB managing director Datuk Seri Bashir Ahmad said today.

He said the full cost of the project, of which its construction would be done via open tender, would be borne by MAHB via loans.

"We will be funding it via loans as we have no debt right now. We have received letters of offer (for loans)," he told reporters at a briefing in Petaling Jaya.

The current LCCT would be converted into a cargo terminal, he added.

He said the cost of the LCCT included a 150,000 sq m new terminal building located 1.5 km west of the main terminal, 70 bays of aircraft parking, a proposed third runway which will be situated only 1.5 km from the second runway, and full parallel taxiways for quick turnaround between both runways.

Bashir said the airport operator was in talks with AirAsia Bhd about the project and added that the low-cost airline was pleased with the progress.

"AirAsia will enjoy greater operational efficiency with the second and proposed third runway just 1.5 km apart. The proposed new runway is also big enough for a B747 to land," he said.

He added that they were also in talks with Express Rail Link Sdn Bhd to extend the connection to the new proposed LCCT, although it would not be included in the total cost of the project.

Asked on why MAHB's cost was bigger than the one proposed earlier for the Labu LCCT, Bashir said this LCCT was bigger and has taken into account passengers comfort in the long-term.

If needed, an adjacent parcel of land to the proposed site could be used for further expansion and could cater for another 25 million passengers.

He added that the soft ground on which the new terminal was to be built was also not a cause for concern as both the existing runways and Bunga Raya Complex were also located on soft ground.

Basir also denied that the issue of Labu LCCT had prompted MAHB to speed up the progress of this new LCCT.

"It took us 16 months to study this and the deadline for it was last December. We did it (study) professionally," he said.

On another note, Bashir said MAH had also proposed to the government the 50 per cent rebate on landing charges as announced in the recent Second Stimulus Package.

He said the rebate, applicable to all airlines, would be of help as the airline industry was going through a difficult time.

"However, this won't affect our bottomline as we are working with the government on a revenue sharing basis for the landing charges," he said.

MAHB makes about RM180-200 million annually from landing charges.

Asked if the airport operator would be reducing other costs such as airport tax since the proposed terminal was for low-cost business, Bashir said aeronautical charges (such as landing and parking fees and tax) would be decided by the government.

He also anticipated that all airports operated by MAHB would have zero per cent growth this year due to the current economic slowdown that has affected passenger movement generally.

However, Bashir expects MAHB to remain profitable following other businesses such as retail.

By Bernama

Casa del Rio project along river to be operational by mid-2010

The RM102 million Casa del Rio Melaka boutique hotel, mall and apartment will be operational by June 2010.

The four-storey project, involving 64 bedroom suites and 32 apartments, will sit on 1.29ha along the Malacca River. The apartments will be offered for sale.

Casa del Rio (Malaysia) Sdn Bhd group managing director Tan Sri Syed Yusof Syed Nasir said that it had invested some RM10 million to acquire the land, which is in addition to the RM102 million investment into the project.

Casa del Rio (Malaysia) owns and manages Casa del Rio hotel. Casa del Rio is Spanish for "home by the river".
Bank Pembangunan Malaysia Bhd yesterday signed a term-loan agreement of RM50 million with its owner Casa del Rio (Malaysia).

A separate agreement was also inked yesterday between Casa Del Rio and Sin Seong Hin Sdn Bhd, where the former awarded a RM60 million contract to the latter to develop the second phase for main building works.

On why there is a six months delay in the opening of the hotel, Syed Yusof said that it was a result of the piling work as well as the tender process for the job.

Syed Yusof also operates the 570-room Concorde Hotel Kuala Lumpur, the 381-room Concorde Shah Alam and the 338-room Concorde Inn KLIA.

Other hotels operated by the group are the 18-room Lakehouse in Cameron Highlands, the 34-room Casa del Mar Langkawi, and specialty restaurants Saloma Theatre Restaurant and Bistro, Hard Rock Cafe and Planet Hollywood in Kuala Lumpur.

By Business Times

Malacca gets nod for RM65m runway extension

The Malacca state government has received the green light from the federal government to extend the runway at Batu Berendam Airport, which is slated for completion in six months.

Chief Minister Datuk Seri Mohd Ali Mohd Rustam said that the extension at the airport, which will be renamed Malacca International Airport, will cost RM65 million.



The extension is to accommodate larger carriers like Boeing B737 and Airbus A320, in line with its goal of making the historical state a top tourist destination.

"The runway will be extended to 2,200m from 1,800m now. It will cost RM65 million and the state will take a loan from the federal government for this," Mohd Ali said.

This is in addition to the RM135 million grant given to renovate and refurbish the airport, which is operated by Malaysia Airports Holdings Bhd.

Mohd Ali said budget carrier AirAsia has indicated that it will fly to three destinations in Sumatra, Indonesia, namely Pekan Baru, Bukit Tinggi and Medan, from Malacca, once the runway is ready.

"After that, AirAsia plans to fly to Penang and Langkawi and a year after that to Jakarta, Palembang, Balik Papan and Kuching (from Malacca)," he said after witnessing an agreement-signing ceremony between Casa del Rio (M) Sdn Bhd and Bank Pembangunan Malaysia Bhd, and Sin Seong Hin Sdn Bhd.

"Firefly will also be coming in. We now only have Riau Airlines (operating at the airport)," he said, adding that he hopes other charter flights will also operate out of Malacca International Airport.

Mohd Ali said the state recorded a total of 7.2 million tourists last year, of which 6 million were domestic tourists. In the first two months of this year, Malacca has already welcomed 600,000 visitors.

He added that some 70,000 foreign patients sought medical treatment at the state.

"This is only 0.1 per cent of the 7 million rich people who are staying in Sumatra. We need to focus more on Sumatra ... with the new Malacca International Airport, we hope more patients will come here," he said.

By Business Times

SATS to unveil mega Senai project in Q2

The multi-billion ringgit development features residential, commercial properties, medical centres and high-tech park

SENAI Airport Terminal Services Sdn Bhd (SATS) will be launching the multi-billion ringgit Senai Aviation & Airport City mixed development project in the second quarter of the year.

Sited on 1,133.11ha beside the Senai International Airport, the project would be undertaken by SATS’ wholly-owned subsidiary Enigma Harmoni Sdn Bhd and comprise three main components, said deputy chief executive officer Shahrull Allam Abdul Halim.

Residential, commercial and hospitality amenities will be featured in the first component spanning 323.74ha while an air cargo logistics centre and high-tech park will occupy 404.68ha each.

The entire development would take about 10 years to complete.

Enigma Harmoni has received planning approval from the Kulai Municipal Council for the project which also includes a Customs Inspection Quarantine Complex (CIQ).

“We will launch the high-tech park first as this is a vital component of the entire development,’’ Shahrull said in an interview with StarBiz.

It will be the second high-tech park in the country after Kulim Hi-Tech Park in Kedah.

He said the investment in infrastructure was estimated at about RM1.2bil.

Other facilities will include private medical centres, international schools, premium hotels and duty-free shopping centres.

The high-tech park aims to attract investments in the avionics/aeronautics industry, information and communications technology industry including integrated circuit design, high-tech manufacturing, bio-medical and bio-technology, solar industry, food and agri-technology and environment including renewable energy.

He said among the companies and investors targeted were those in the pharmaceutical industry from Austria, Germany and Switzerland; oil and gas, and solar energy sectors in the United States; and Japan’s motor vehicle sector.

“It is a pre-requisite for companies operating in our park to have research and development (R&D) elements,’’ added Shahrull.

He said there would be a flagship building known as the knowledge centre where most of the R&D activities would be undertaken.

The building will incorporate collapsible office and laboratory incubator concepts where higher learning institutions could bring their undergraduates to undertake R&D studies or programmes with the companies or the industries.

Shahrull said it would collaborate with Universiti Teknologi Malaysia main campus in Skudai, Johor to participate in the university-industry R&D programmes.

He said SATS was looking at participation from China companies in the development and construction of Senai Aviation & Airport City.

Shahrull said it would collaborate with established high-tech park operators in China’s Pearl River Delta region to market the Senai park.

“Ours will probably be the first integrated high-tech park in the world connected to the airport. Similar parks like the ones in Frankfurt and Dubai are located several kilometres from the airport,’’ he said.

Opened in 1974, Senai Airport is managed by SATS which took over the operations of the airport from Malaysia Airport Holdings Bhd in 2003.

By The Star