Decision on Labu LCCT plan soon

(TheStar) – The decision on AirAsia’s proposal to build a new low-cost carrier terminal (LCCT) costing RM1.6bil in Labu, Negri Sembilan will be known in two to three weeks’ time, said Transport Minister Datuk Seri Ong Tee Keat.

“Actually, the Government has not made a decision on the matter. What is important is that all the fact-finding and details arising will be scrutinised,” he told Bernama after attending a Chinese New Year dinner function organised by the MCA, here, last night.

Ong said the Government needed time to decide on the matter as it involved many parties.

“The Transport Ministry, Economic Planning Unit, Finance Ministry, Malaysia Airports Holdings Bhd (MAHB) and AirAsia are meeting for the good of all parties concerned,” he said.

Bernama had earlier yesterday reported that the Government had rejected the proposal for a new LCCT in Labu, but the low-cost carrier was said to have several concessions, according to sources.

It was reported that MAHB would be given the responsibility to build a new LCCT near the existing terminal, which is next to the Kuala Lumpur International Airport (KLIA) in Sepang.

The sources were also quoted as saying that the decision to cancel the proposed project was conveyed to AirAsia at a meeting chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak and was attended by Finance Ministry, MAHB and AirAsia officials.

At the meeting, AirAsia was led by its group chief executive officer Datuk Seri Tony Fernandes.

In a statement issued after the meeting, Tony said AirAsia regarded the outcome of the meeting as very positive and that it was now awaiting the details.

He said AirAsia was committed to providing its guests with world-class, five-star service via a purpose-built LCCT.

He said AirAsia was also committed to making Kuala Lumpur a regional hub for low-cost carriers and contributing significantly to the growth of Malaysian economy.

Financially, it is also good news for AirAsia, he said.

It already has a high gearing, and with this it does not have to seek funding for the new LCCT, he added. — Bernama