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News is that the government has rejected building the new low-cost terminal (and airport) near Sepang at Labu, Negeri Sembilan. Instead, the government is more keen with the idea of MAHB of building a new terminal near the existing, hastily-built, over-congested LCCT in Sepang. The reason why AirAsia isn’t keen on that idea is because construction would take too long.

It isn’t quite shocking. The government previously closed Subang Airport to AirAsia’s uses and forced it to use KLIA. It then hastily built the present LCCT from the old cargo hanger. The main (often, unstated reason) is to prevent regional competition for the new KLIA in Sepang (located some 58 km outside KL, its a wonder who decided to call it KLIA). Presently, a lot more public money would be spent building a new LCCT in Sepang. Looking at Senai Airport, the only airport in Malaysia not operated by MAHB or the government, shows the potential of a privately-run, efficient and profit-making airport targetting low-cost carriers.

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