bkong
Apr 14, 02, 9:23 pm
http://biz.scmp.com/bizmain/ZZZFP2C8GZC.html
New airport launches drive for customers
April 15, 2002
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The ambitious and costly international airport has mounted a campaign to raise its profile with travellers and airlines, but analysts say a foreign partner is crucial if it is to become a regional aviation gateway.
The troubled four-year-old Kuala Lumpur International Airport (KLIA) was dealt a new blow last month when Dutch Schiphol Group, which operates Amsterdam airport, abandoned plans to buy 30 per cent of the local airport operator.
The M$9 billion (about HK$18.4 billion) showpiece airport, which opened in June 1998 amid the Asian financial crisis, has suffered a number of setbacks, with Aeroflot, British Airways, Qantas and Lufthansa scrapping flights for commercial reasons.
But KLIA hopes to put its bad start behind it with a M$10 million marketing campaign launched on Thursday to carve a new image to put it on a par with more established hubs such as Singapore and Bangkok.
The global campaign, dubbed "Integrated for Ease," aims to increase traffic at KLIA - which is built to handle 25 million passengers annually - to 18 million this year from 14.6 million in 2001.
A main selling point is the new high-speed rail link between the airport and central Kuala Lumpur some 70 kilometres away, launched by Prime Minister Mahathir Mohamad at the weekend.
An airport railway terminus in the Malaysian capital offers check-in services and will next year provide luggage collection and customs clearance, the first of its kind in the world, officials said.
KLIA also plans to bolster its presence at international trade shows and intensify co-operation with the tourism board and Malaysia Airlines to promote the country in growth markets such as the Middle East.
The futuristic airport itself will get a new look, with its interior redesigned to make room for more stores and shopping.
To court top carriers from neighbouring Singapore, it plans to dish out perks such as tax breaks and fifth-freedom landing rights, which will allow airlines to pick up passengers while in transit in Malaysia.
Last year, the airport waived parking and landing charges for qualified airlines but there were few takers.
Analysts said good facilities and low airline charges were insufficient to draw airlines, as KLIA's main flaw was that it lacked a strong passenger base compared with Thailand and Singapore.
"It is a volume game. It has nothing to do with fees. KLIA needs sufficient travellers to be attractive to airlines," Song Seng Wun, regional economist with Singapore-based GK Goh, said.
Mr Song said Schiphol's withdrawal was a loss, as an alliance could have persuaded European carriers in Amsterdam airport to use KLIA as an Asian hub.
"It is a big blow to KLIA, as Schiphol would have been a big advantage. KLIA needs a foreign partner, a big international operator to boost its profile globally and increase connectivity," he said.
"Beyond cutting fees or offering perks, Malaysia must also concurrently take aggressive steps to promote the country as a destination to visit."
The Government, which owns a 72 per cent stake in operator Malaysia Airports, signed a deal last year to sell a 30 per cent stake to Schiphol, but talks fell through after the parties failed to agree on the terms.
Victor Wan, senior analyst with Mercury Securities, concurred that Schiphol's management expertise would have come in handy to promote KLIA.
Airport officials maintain KLIA could in time reach regional-hub status, noting that business had improved after the September 11 attacks in the United States led to a worldwide slump in travel.
Forty-two international airlines operate at KLIA but more Middle Eastern and Chinese carriers are to join the fold, with Xiamen Airlines due in late April, Kuwait Airlines in June, Egypt Air in July and Oman Air later this year.
New airport launches drive for customers
April 15, 2002
-----------------------------------
The ambitious and costly international airport has mounted a campaign to raise its profile with travellers and airlines, but analysts say a foreign partner is crucial if it is to become a regional aviation gateway.
The troubled four-year-old Kuala Lumpur International Airport (KLIA) was dealt a new blow last month when Dutch Schiphol Group, which operates Amsterdam airport, abandoned plans to buy 30 per cent of the local airport operator.
The M$9 billion (about HK$18.4 billion) showpiece airport, which opened in June 1998 amid the Asian financial crisis, has suffered a number of setbacks, with Aeroflot, British Airways, Qantas and Lufthansa scrapping flights for commercial reasons.
But KLIA hopes to put its bad start behind it with a M$10 million marketing campaign launched on Thursday to carve a new image to put it on a par with more established hubs such as Singapore and Bangkok.
The global campaign, dubbed "Integrated for Ease," aims to increase traffic at KLIA - which is built to handle 25 million passengers annually - to 18 million this year from 14.6 million in 2001.
A main selling point is the new high-speed rail link between the airport and central Kuala Lumpur some 70 kilometres away, launched by Prime Minister Mahathir Mohamad at the weekend.
An airport railway terminus in the Malaysian capital offers check-in services and will next year provide luggage collection and customs clearance, the first of its kind in the world, officials said.
KLIA also plans to bolster its presence at international trade shows and intensify co-operation with the tourism board and Malaysia Airlines to promote the country in growth markets such as the Middle East.
The futuristic airport itself will get a new look, with its interior redesigned to make room for more stores and shopping.
To court top carriers from neighbouring Singapore, it plans to dish out perks such as tax breaks and fifth-freedom landing rights, which will allow airlines to pick up passengers while in transit in Malaysia.
Last year, the airport waived parking and landing charges for qualified airlines but there were few takers.
Analysts said good facilities and low airline charges were insufficient to draw airlines, as KLIA's main flaw was that it lacked a strong passenger base compared with Thailand and Singapore.
"It is a volume game. It has nothing to do with fees. KLIA needs sufficient travellers to be attractive to airlines," Song Seng Wun, regional economist with Singapore-based GK Goh, said.
Mr Song said Schiphol's withdrawal was a loss, as an alliance could have persuaded European carriers in Amsterdam airport to use KLIA as an Asian hub.
"It is a big blow to KLIA, as Schiphol would have been a big advantage. KLIA needs a foreign partner, a big international operator to boost its profile globally and increase connectivity," he said.
"Beyond cutting fees or offering perks, Malaysia must also concurrently take aggressive steps to promote the country as a destination to visit."
The Government, which owns a 72 per cent stake in operator Malaysia Airports, signed a deal last year to sell a 30 per cent stake to Schiphol, but talks fell through after the parties failed to agree on the terms.
Victor Wan, senior analyst with Mercury Securities, concurred that Schiphol's management expertise would have come in handy to promote KLIA.
Airport officials maintain KLIA could in time reach regional-hub status, noting that business had improved after the September 11 attacks in the United States led to a worldwide slump in travel.
Forty-two international airlines operate at KLIA but more Middle Eastern and Chinese carriers are to join the fold, with Xiamen Airlines due in late April, Kuwait Airlines in June, Egypt Air in July and Oman Air later this year.