Saturday, December 31, 2011

KLIA 2: Low Cost or High Cost Airport?

This is the design of the new KLIA2 "Low-Cost Terminal"

This is the "luxurious" interior of the new KLIA2 "low-cost terminal"

And another view of the "luxurious" interior of KLIA2 "low-cost terminal"

And here's the history of KLIA2 cost overrun from RM1.7 billion to RM3.9 billion:

1. 2007 – RM1.7 billion

22/7/ 2007 Terminal baru syarikat penerbangan tambang murah (LCCT) serba canggih dan selesa bernilai RM1.7 bilion akan dibina di Lapangan Terbang Antarabangsa KL (KLIA) bagi menggantikan LCCT sedia ada yang semakin sesak. (Berita Harian)

2. 2009 - RM2.0 billion

10/3/2009 – Ong said the new LCCT would be ready by 2011 and the total cost was estimated at RM2.0 billion. (The Star)

3. 2010 - RM2.5 billion

30/10/2010 – Malaysia Airports Holdings Bhd (MAHB)… its board of directors had mandated a sum of RM2.5 billion for the overall construction cost of KLIA 2. (Business Times)

4. 2011 - RM3.9 billion

29/11/2011 – The new low-cost terminal (LCCT), KLIA2, with world class facilities to handle about 45 million passengers yearly, is expected to cost between RM3.6 billion and RM3.9 billion… (Bernama)

Existing LCCT

For comparison purposes, the cost of existing LCCT is RM108 million plus a subsequent upgrade costing RM124 million for the total cost of RM232 million.  The existing LCCT doesn't have to add the cost of new aprons (where planes taxi and park) and runways, but the sheer gulf in cost difference tells you how MAHB has been spending its money.  As a result of the new KLIA2, MAHB had to raise RM2.5 billion in sukuk loans in 2010.

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