February 16, 2011 at 12:00 pm
State Tourism, Culture and Environment Minister Datuk Masidi Manjun has asked low-cost carrier AirAsia to consider national interest and not just profit when relocating operations to Kota Kinabalu International Airport Terminal 1. He urged the Transport Ministry and the budget airline to settle the matter amicably.
An AirAsia aircraft on the tarmac of a Malaysian airport
“AirAsia has some good points, but I think they also need to look into the rationale, the points raised by the government. If the issue is cost, I’m sure the government will be more than happy to discuss.
“Being a low-cost airline, I know AirAsia want to be efficient and want to cut cost, but we have to consider national interest than just profit,” he told reporters when commenting on AirAsia Group chief executive officer Datuk Seri Tony Fernandes’ remark last week that the airline was reluctant to move from Terminal 2, where AirAsia is currently operating now, to the newly-expanded KKIA Terminal 1, as costs would increase and force the airline to reduce flights, causing Sabah to lose some one million tourists.
The Terminal 2 is to be converted for cargo handling.
Deputy Transport Minister Datuk Abdul Rahim Bakri had responed, saying the ministry was surprised by Fernandes’ remarks as AirAsia had signed an undertaking letter with the ministry on relocating to Terminal 1.
He said the Kota Kinabalu International Airport has been upgraded at a cost of RM1.6 billion to cater for airline companies’ needs and growth.
Source: Bernama