klia2 to be shopping paradise

KUALA LUMPUR - Malaysia's new low-cost carrier terminal, klia2, will rival airports such as Singapore's Changi Airport and Thailand's Suvarnabhumi Airport in terms of shopping and other attractions.

Malindo Airways chief executive officer Chandran Ramamuthy said he expected the fledgling airline's business to grow in tandem with the airport because of the shopping paradise klia2 offers passengers.

"We are using the airport itself as one of our promotional attractions," he told Business Times yesterday.

Malindo expects to see its passenger capacity grow by 15 per cent within a year from the official launch of klia2 today.

"As of last month, we had 1.5 million passengers flying with us. With the launch of klia2, we expect that figure to increase by 15 per cent within 12 months from the terminal's opening," said Chandran.

"Because of the expected increase of passengers from klia2, we will add six more aircraft to our existing fleet of six, also within the same period.

"This is feasible as we will have sufficient hangar space to accommodate them within the new terminal."

Malindo will offer slightly lower fares to its passengers now that the management no longer needs to pay full airport tax as they did at the KLIA.

"Fares will be slightly cheaper as we have slashed airport tax payment by half by moving to klia2.

"That will be a factor in our passenger increase as now, we are on an even playing field with other low-cost carriers."

Philippines' Cebu Pacific Air, Singapore's Tiger Airways and Indonesia's Lion Air and Mandala Airlines will begin operations today.