We won’t move, says AirAsia chief

KUALA LUMPUR: A standoff is looming between AirAsia and the government over a decision to move the airline’s operations from the four-year-old low-cost carrier terminal to the renovated Kota Kinabalu International Airport (KKIA) terminal later this year.

“We are not moving. I will chain myself and the Federal Reserve Unit will have to take us,” AirAsia Group chief executive officer Tony Fernandez told reporters from Sabah and Sarawak over the weekend.

Arguing that the move made no practical sense, he warned that the number of tourist arrivals to Kota Kinabalu would be at stake should the airline be forced to move its operations from the present terminal.

He said any move would cause a hike in ticket prices to and from the city to offset the higher airport tax that would be charged. Thus, the passenger service charge would rise to RM51 from the current RM25.

Fernandez also criticised the new terminal for its scant facilities.

“We are very against it because they don’t have enough facilities in the terminal for us from the start.

“It looks empty but during the peak time, there are a lot of planes coming in. So where are we going to put our planes? And there’s not enough check-in counters,” he said.

Fernandez added that the move, ordered by the Ministry of Transport, would have the dual affect of preventing any expansion to new destinations from Kota Kinabalu and possibly also result in the current number of routes being reduced.

AirAsia flies to 13 destinations in six countries including China, Indonesia, Malaysia, the Philippines, Singapore and Taiwan and is estimated to carry around a million tourists into the state capital.

“Already my Indonesian counterparts are reviewing whether to keep Jakarta-KK route,” he said.

It is currently the only route the airline has between Kota Kinabalu and Indonesia.

Plans on hold

As a result of the government’s decision, the budget airline has to put on hold plans to add two more aircraft to its current fleet of six in Kota Kinabalu to bring in an additional 800,000 passengers into the state a year.

Also on hold are plans to use the low-cost terminal in Kota Kinabalu as a major eastern hub to venture into markets in North and South America, Australia, South Korea, China and Japan.

“We can do so much more. Sabah and Sarawak have so much to offer but the airport charges and the lack of development are frustrating us.

“We are being held back from developing more international flights and it’s beginning to already affect KK,” he said.

He suggested that instead of converting the low-cost terminal into a cargo facility, it should remain as it is, and be further expanded.

“KK is now depending on the low-cost terminal. My recommendation is to get rid of the cargo and move it somewhere else. We have given the authorities a plan.

“Which is giving Sabah more? A little bit of cargo or a million tourists that we are bringing in?” he said.

The ministry and Malaysia Airports Bhd have not responded to the proposal.

Fernandez also lashed out at the Sabah Tourism Board for lobbying to have the airline moved to the new terminal.

“Sabah really supported us, brought us to where we are. Now we are saying, ‘Don’t stop the support.’ We don’t need the money or anything. Just help us in expanding the LCCT,” he added.

State Tourism, Culture and Environment Minister Masidi Manjun has so far refused to comment on the issue, saying that he is gathering facts related to the matter and would be giving a response in due time.

In December 2010, Transport Minister Kong Cho Ha said that the ministry had an understanding with AirAsia, as well as other low-cost carriers, to relocate to the new terminal once the RM1.4 billion upgrade was completed.