Malaysian authorities have shifted remaining domestic passenger jet operations from Kuala Lumpur's old airport at Subang to the four-year-old Kuala Lumpur International Airport (KLIA) to boost traffic. Meanwhile, they continue to aggressively seek new international customers for KLIA.
The new airport has struggled to attract new business since it opened in 1998 and traffic levels have been lower than were forecast while it was being built. Operator Malaysia Airports Holdings says the shift of domestic operations by Malaysia Airlines and low-fare carrier AirAsia will boost passenger numbers at KLIA by around 2.6 million annually, to more than 17 million from the 14.6 million recorded last year. After the shift KLIA will handle an average of 585 flights per day, up from the current 354. KLIA is able to cope with 25 million passengers annually. It handles 43 international airlines.
Meanwhile, Malaysia's government has decided to give airlines launching new services to KLIA over the next five years cash equal to their advertising spending in the country up to 500,000 ringgit ($130,000). Airlines will be given one ringgit for every ringgit spent on promoting new services, says transport minister Ling Liong Sik. A 10 million ringgit fund has been established to pay for the scheme.
The new scheme follows the waiving of aircraft landing and parking charges for five years earlier this year. Fee waivers will be given to airlines opening their first routes to the airport and incumbent carriers launching additional flights within the next five years.
Source: Airline Business
