AirAsia’s low-cost hub vision hindered by infrastructure gaps, say experts

 

Experts say improving public transport and making the arrival system at KLIA more efficient are essential to realise Tony Fernandes’s vision of Kuala Lumpur serving as an aviation hub for AirAsia. (Bernama pic)

PETALING JAYA: 

Multiple infrastructure gaps will have to be plugged for AirAsia to realise its hopes of making Kuala Lumpur a low-cost aviation hub, according to an entrepreneur in the sector.

M Mugunthan, founder of pilot training startup NextGen Pilot, cited the fragmented public transport system in Kuala Lumpur as one of the major infrastructural problems.

“Inefficient e-hailing services, an under-performing bus system and a disconnected train network make it difficult to manage increased traffic and provide seamless connectivity for passengers,” he told FMT.

Mugunthan said the arrival system at KLIA was also inefficient, often leaving travellers frustrated, thus discouraging them from returning.

“This undermines efforts to position the international airport as a top-tier aviation hub, even for low-cost carriers,” he told FMT.

He said airports in Malaysia now lacked the space and infrastructure to make them world-class.

“To complete the ecosystem, a more comprehensive solution is needed,” he added.

On the other hand, Mugunthan said, the successful execution of the KLIA Aeropolis could be pivotal to making Kuala Lumpur a low-cost aviation hub for AirAsia.

He said the development of the airport city by Malaysia Airports Holdings Bhd would provide the necessary infrastructure and ecosystem to support KLIA’s growth as a regional hub.

“The successful execution of this mega project will have a direct impact on (AirAsia founder) Tony Fernandes’ ambition,” he added.

Last month, Fernandes said AirAsia hoped to make Bangkok and Kuala Lumpur low-cost aviation hubs that connect the world, much like Dubai.

He spoke of funnelling connecting passengers through airports in Bangkok and Kuala Lumpur en-route to the various destinations that AirAsia and its long-haul arm AirAsia X serve, Bloomberg reported.

Transport consultant Wan Agyl Wan Hassan said one major hurdle AirAsia faced was competition, with fellow budget carriers VietJet and Lion Air also operating in Southeast Asia.

He said such a large-scale expansion would be a challenge given that the airline was still recovering from the effects of the Covid-19 pandemic.

Wan Agyl also said a hub-and-spoke model involving more than one country would require AirAsia to obtain strong support from the respective governments and regulators to ensure seamless connectivity.

“Securing favourable agreements and policies, like open skies arrangements, will be critical to making this vision work,” he said.

Open skies policies refer to international agreements between countries that allow airlines to operate freely between the respective nations with no limits on routes, capacity or pricing.

However, aviation consultant Brendan Sobie played down Fernandes’ idea, saying that both Kuala Lumpur and Bangkok were already established aviation hubs. - FMT