Malaysia is to build a new low-cost carrier terminal at Kuala Lumpur International Airport (KLIA) after rejecting pleas from the country's only low-cost carrier, AirAsia, to construct the terminal at Subang Airport.

According to Malaysia's ministry of transport, the government has decided to build a 100 million ringgit ($26 million) terminal at KLIA for low-cost carriers. Transport minister Chan Kong Choy "did not say when work will start, but it will be within the vicinity of KLIA and will be completed in mid-2006", says the ministry.

Choy says the government chose KLIA because it had already earmarked the newer airport for expansion whereas Subang, Kuala Lumpur's old airport, is due to become a regional hub for maintenance, repair and overhaul.

Source: Flight International

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