Negotiations are underway among three stakeholders on the building of a new low-cost carrier terminal (LCCT) in the vicinity of the Kuala Lumpur International Airport (KLIA) in Sepang, Selangor.

klia kl international airport While revealing this today, Malaysia Airports Holdings Bhd (MAHB) managing director Bashir Ahmad Abdul Majid refused to disclose details of the discussions.

He would only confirm that the project will be developed by his company. Also involved in the talks are the Transport Ministry and budget carrier AirAsia.

“I think the government has already announced that the new LCCT will be built at the KLIA and that it will be build by MAHB. We can’t reveal the (scope of) discussions but this is ongoing,” he told a press conference this morning.

He also said the location has been identified but that it will only be revealed to the public at the “appropriate time”.

airasia airplane Initially, AirAsia had conveyed its interest in spearheading the development of a new LCCT worth RM1.6 billion in Labu, Negri Sembilan.

The company cited efficiency, cost savings and the ability to better cater to the needs of its passengers as the main reasons for its move to build its own airport.

The government, however, called off the proposal and instead gave the MAHB the go-ahead to proceed with the original plan to build a new LCCT at the KLIA.

najib tun razak 040808 The government's reversal indicated that state-owned investment arm Khazanah Nasional, which has a majority stake in MAHB, was successful in lobbying premier-in-waiting Najib Abdul Razak in a bid to protect its interests.

However, today’s disclosure indicates that AirAsia has achieved what it wanted - to be consulted on the design of the new LCCT, as well as paying lower charges for the use of the terminal.

Curbs on touting

Transport Minister Ong Tee Keat, at the same press conference, said the ministry and MAHB are currently studying ways to curb the activities of touts at the KLIA.

ong tee keat interview 230810 09 Ong said agencies like the Road Transport Department have given proposals to both MAHB and the ministry on ways to eliminate touting.

“One (way) is to have all the ticket counters placed inside the main terminal. We are looking into this,” he said.

KLIA users have long complained of touts who cheat them on transportation fares into the city.