AirAsia Unveils Plan To Open New Airport

Jan 9, 2009
Darren Shannon



AirAsia CEO Tony Fernandes, citing capacity constraints at Kuala Lumpur International Airport, has unveiled plans to relocate to a newly proposed base outside Malaysia's capital.

Speaking at a Jan. 8 news conference, Fernandes said the new airport, KLIA East, could be operational by 2011 and will be capable of handling up to 50 million passengers a year. In contrast, he noted, its current home at the low-cost terminal at KLIA has a maximum capacity of 15 million passengers.

Financing and ownership details are still being negotiated, AirAsia's CEO told reporters, and the carrier would consider raising money for the project. However, AirAsia does not intend to operate the airport and would prefer third-party involvement.

Total development cost for the KLIA East project is estimated at MYR1.6 billion (US$450 million). AirAsia said the plan has received government approval.

KLIA East will be situated in Labu in Negeri Sembilan, about 15 miles from AirAsia's current base. Reports of the news conference say the proposed site is currently owned by Malaysian conglomerate Sime Darby, which will develop the airport with AirAsia.

Photo: AirAsia