AirAsia’s airport plan rejected
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The Malaysian government has said no to a proposal by low-cost carrier AirAsia to build a US$460 million airport outside the capital, according to an official quoted in an AFP report.
AirAsia founder, Tony Fernandes, had said last month that AirAsia wanted to abandon its basic terminal next to the main international airport in Kuala Lumpur to improve service standards and lower its operational costs.
“(The government) fears the cost of the construction may escalate and it may be forced to inject funds. The government does not want the project to be a burden,” the official was quoted saying.
AFP had quoted a The New Straits Times report which cited an unnamed source as saying that Malaysia Airports Holdings Bhd (MAHB) would instead build a new budget terminal to replace the existing facility near Kuala Lumpur International Airport (KLIA).
“Malaysia Airports will build a new low-cost carrier terminal near the Kuala Lumpur International Airport but they (MAHB) will have to work closely with AirAsia. AirAsia’s input in the building of the new terminal will have to be taken into consideration,” the newspaper quoted the source as saying.
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