The KLIA - Subang dilemma
The debate on KLIA or Subang as the hub for budget airlines continues to hog the limelight. Naturally, views are still divided between the two locations and it is not surprising either why regular travelers in the Klang Valley are all for Subang.
It is not an easy decision to make and any further delay on the final decision of the location for the new low-cost carrier (LCC) terminal would have an adverse effect on Malaysia’s competitive edge as a regional hub for budget airlines. Singapore has a head-start at least with its decision on the construction of a new LCC terminal with the completion scheduled for early next year.
The speedy decision from across the causeway is understandable, given Air Asia’s explosive growth and expansion beyond the domestic market and now presence in Thailand as well as Indonesia.
Air Asia has a valid case in favour of Subang and making the Sultan Abdul Aziz Shah Airport a hub for low-fare carriers in Asia. After all, Air Asia is in the business of offering the lowest fare and can only do so at the lowest cost.
And here comes the dilemma. Can the nation afford to have the LCC terminal outside KLIA? On paper, it is a viable proposition but can it be done at the expense of KLIA? The traffic has grown in recent years but the world-class airport in Sepang is still a very much an under-utilised airport. We can actually count the number of non-MAS Boeing 747 aircraft at the tarmac with our fingers even during the peak hours.
KLIA looks busy but still very dependant on the growing domestic traffic. And needless to say, having the LCC terminal (outside Sepang) may have a great impact on MAS’ domestic flights which are competing head-on with Air Asia.
Malaysia has talked about being an aviation hub going back to the mid 80s and obviously it was never in contention given the appeal of Singapore as the regional gateway and now Bangkok, emerging as the closest competitor to the island republic in this region.
But there is hope for Malaysia to emerge as a regional hub for budget carriers and possibly even aircraft maintenance, repair and overhaul.
Making Subang the location for the LCC terminal surely looks very promising and perhaps the competitive edge that we need to compete with Singapore for the sizeable share of the budget airline business.
So will it be KLIA or Subang? Let’s toss the coin.