AirAsia Bhd Working with MAHB on KLIA2 LCC Hub Branding

4th Oct 2016

After having their disagreements about KLIA2, AirAsia and Malaysia Airports Holding Bhd seems to finally be on the same page when it comes to Kuala Lumpur International Airport’s second terminal as the two will work together on the KLIA2 branding and promotional campaign.

The campaign will be called either “LCC Hub at KLIA2” or “Asia’s Number One Hub at KLIA2”, said AirAsia Chief Executive Officer Aireen Omar. The promotion will include not only Malaysia, but also the rest of AirAsia Group network, including India, China, Thailand and Indonesia.

According to Omar, they are now waiting for MAHB to give the “go ahead” to start the campaign.

Ms Omar said:

By having this campaign and branding, people will immediately associate AirAsia and Kuala Lumpur with LCC hubs, a great way to travel, cheap airfares and that sort of thing. We (AirAsia and MAHB) already have an agreement on how it should be called. Now it’s just for us to go on that branding campaign and also for them (MAHB) to be able to endorse it and work with us.

The campaign should also help Malaysia recapture KLIA’s position as the low-cost carrier hub in Asia from Don Muang International Airport in Bangkok, Thailand.

AirAsia CEO said:

Right now, it’s overtaken by Don Muang International Airport, but we feel that we can take them on. IN order to take them on, we need the support from various parties.

AirAsia and MAHB have a History of Disagreement

The disagreement between Asia’s best low-cost carrier and MAHB dates back to when KLIA2 construction started  in 2009, but it culminated in June this year when AirAsia Group CEO Tony Fernandes revealed his plan to turn the terminal into the “Dubai of Asia’ and changing KLIA2 name to “low-cost carrier terminal 2” (LCCT2).

This did not went well with MAHB, as the airport company responded by saying KLIA2 is Kuala Lumpur International Airport’s number two terminal and an important part of KLIA hub in Sepang. MAHB also said that, although KLIA2 is primarily used by lowcosters, it was designed for both budget and full-service airlines.

AirAsia CEO, Omar said about AirAsia’s relationship with MAHB:

We are still trying to improve the relationship. It takes two to tango. I think both parties have to recognise who is the customer and what the customer needs in order to grow.