Formula to ensure room for MAS, AirAsia to grow

THE Transport Ministry will work on a formula to enable both AirAsia and Malaysia Airlines to develop and grow commercially.

However, it stopped short of saying that it will come up with a national aviation policy.

"We will only work on policy changes based on need," recently appointed Transport Minister Datuk Seri Kong Cho Ha said when asked on whether his ministry would look to develop such a policy. He was officiating at a two-day "Pillars of Aviation" conference in Kuala Lumpur yesterday, entitled "Bridging the Gap Between Emerging Markets".

Kong said the expansion of the local aviation industry provides room for both airlines to grow.



In his speech, he said the government is aware that strengthening the aviation industry is key to the development of business and commercial sectors.

"Our g overnment will always proactively ensure that the aviation industry in Malaysia maintains its agility and flexibility to respond to any changing circumstances in order to continuously grow and prosper," Kong added.

Meanwhile, Malaysia Airports Holdings Bhd (MAHB) senior general manager of operation services Datuk Azmi Murad told participants that it targets the current low-cost carrier terminal (LCCT) to breach the 16 million passenger mark by year-end.

The LCCT was extended in March 2009 to accommodate 15 million passengers a year.

The new permanent LCCT, which has a design capacity of 30 million passengers annually, is due to be ready by early 2012.

Azmi said with June coming to a close, MAHB saw 18.9 per cent growth in passenger volume in the first six months of the year for all 39 of its airports in Malaysia.

The Kuala Lumpur International Airport (KLIA) performed slightly better at 20 per cent growth compared to last year's.

Azmi said the growth was largely contributed by regional legacy carriers and the low-cost airlines.

MAHB is also working on enabling seamless transfers of passengers and baggage from the main terminal in KLIA and the current LCCT, and vice-versa.

The move is expected to allow passengers to check in themselves and their baggage at the terminal of arrival.

"We are fine-tuning things now, but should be able to start offering it by the end of the year," Azmi said.

The initiative is part of MAHB's move to ease travel for some 500 passengers on average a day, who move from the main terminal and LCCT




By Presenna Nambiar
Business Times