KOTA KINABALU, Sept 16 ― Malaysia Airports Holdings Bhd (MAHB) pledged RM10 million to the state’s tourism industry in a bid to entice budget airlines AirAsia to move its operations to the main terminal of Kota Kinabalu International Airport.
Prime Minister Datuk Seri Najib Razak said that the funds will be channeled to the Sabah Tourism Board for target marketing efforts as soon as all airlines moved to the newly-officiated KKIA Terminal 1.
“They have to move. There are plans to convert Terminal 2 into a cargo terminal. They have already exceeded the deadline,” said Najib in a press conference after officiating the airport today.
The budget airline is the sole airline operating from Terminal 2 since Cebu Pacific moved its operations to the main terminal on January 1 this year.
Despite complaining of cramped and inefficient facilities, AirAsia has refused to move their operations to the main terminal, which had undergone major renovation and expansion works.
The airlines have ignored several deadlines to move, citing a 100 per cent increase passenger service fee, inefficient management, and lack of expansion plans to support the airline’s growth plans.
The prime minister earlier said that Terminal 1 was under utilised, having the capacity for nine million passengers, but having served 3.19 million out 6.79 million passengers last year.
He said all operations should be integrated at the new airport to give visitors a good “first world” impression of the city upon arrival.
“The beauty of Sabah’s natural surroundings and its friendly, happy people should be reflected in the airport as well,” he said.
