Kuching Negotiates with AirAsia for LCCT

19th Jun 2017

AirAsia and Sarawak state government are in negotiations for the construction of a new Low Cost Carrier Terminal (LCCT) in Kuching. The new LCCT should be located near Kuching International Airport.

Chief Minister Amar Abang Johari Tun Openg did not want to disclose much about this, but said the negotiations between the airline and the state “are now in the process”.

Mr. Abang Johari said yesterday:

We are now in the process of negotiations with AirAsia.

When asked about the potential site for the LCCT, he said it is “not confirmed yet”, but it should be:

Near the airport (Kuching International Airport – KIA).

According to AirAsia Bhd CEO Aireen Omar, the airport in Kuching has already reached its capacity of 5 million passengers per year.

Aireen said in a press conference on 5^th June:

So I think we need to start looking at how we need to expand the airport now in order for us to realize our plans in bringing more connectivity so that the state government can see their targets being achieved very soon.

Ultra-Long Flights Not Relevant for Now, Says Fernandes

Despite the recent report that AirAsia’s long-haul low-cost affiliate AirAsia X could start a direct flight to London, Manchester or Dublin, this won’t happen any time soon.

In a tweet, AirAsia Group Chief Executive Officer Tony Fernandes said the ultra-long haul flights are not currently relevant for AAX and the carrier will not fly them for now.

Fernandes tweeted:

We have decided that ultra-long haul (flights) are not relevant now. (We) won't get seduced into price wars over London.

In another tweet, AirAsia boss said:

We let the full service guys fight it out over Europe. Many of them bleeding so so much.

According to Fernandes, the long-haul carrier will continue to fly 8-9 hour flights, with focus mainly on Asia continent. AAX also flies to Honolulu, Hawaii, from Kuala Lumpur, via Osaka, but that is eight hours removed from Japan, so it still fits its portfolio.

Fernandes also added that AirAsia X’s financial turnaround is on its way. He said:

The second quarter will complete it. The 3^rd and 4^th quarter will be best ever quarters for AAX.