In April 2014 AirAsia said it will not move from LCCT because of the issues of safety and security in KLIA2.
Of course, the editor of Star Business, Ms BK Sidhu, went to town with the allegations made by AirAsia without checking with MAHB and/or Ministry of Transport, HERE.
It has since transpired that the allegations made by AirAsia were false and the ICAO has in fact certified that KLIA2 is safe. In other words, Ms BK Sidhu took the nation for a ride. Ms BK Sidhu had done a disservice to the investing public when she was in pain to portray that the IPO share of AirAsia X will be over-subscribed by 5 to 6 times when it was under-subscribed where Maybank Investment had to pump in fund to stabilise AirAsia X IPO share price.
It would appear from the facts that AirAsia had no plans to move to KLIA2 in the first place, even though it was the airline itself which demanded for a better airport and has been the sole complainant over the delays in the completion of KLIA2, HERE.
At all material times, AirAsia knew that KLIA2 would be ready in 2014. There is no reason for AirAsia for not getting its headquarters constructed before the completion of KLIA2.
It is most unacceptable that when KLIA2 is in operation and LCCT, described by Tan Sri Tony Fernandes as a “horse stable”, had to be kept open for the exclusive use by AirAsia as its headquarters.
MAHB should not be forced to postpone its plan to make LCCT into a global cargo and logistic hub in order to accommodate a recalcitrant company like AirAsia that would not hesitate to make false allegations and/or spin stories against the authority and/or government. AirAsia’s only loyalty is its business model to make maximum profits at all costs.
It should not shamelessly thrive on lying and/or spinning to do its business. And such business modus operandi must not only be tolerated but stemmed out from the market place.
Now Everyone Can See: AirAsia Caught Lying when it alleged that KLIA2 is not safe.
On June 3, 2014, AirAsia Bhd clarified that it was in the midst of obtaining approvals from the local authorities for its new office at KLIA2 and that it did not face any funding issues, as claimed in a news report.
Chief executive officer, Ms Aireen Omar, said the company was requested to reduce the height of its new building when the control tower at KLIA2 was relocated to a new site upon instruction by the authorities.
She said the new site has to be identified, and plans had to be redrawn and re-submitted for approval which has adjusted the timeline of the new office building significantly for AirAsia.
Construction of the new building was expected to commence in July 2014 for completion late next year, she said.
A local daily had reported earlier that AirAsia might have delayed Malaysia Airports Holdings Bhd’s (MAHB) plan to turn the Low-Cost Carrier Terminal (LCCT) in Sepang into a global cargo and logistics hub.
Citing sources, the local daily said AirAsia wanted its headquarters to remain at the LCCT for at least another year.
The above press statement from AirAsia was in respond to the earlier report by NST of 1-6-2014.
For full NST report on 2-6-2014 please read HERE.
NST report: 1-6-2014
AirAsia Bhd may have delayed Malaysia Airports Holdings Bhd’s (MAHB) plan to turn the Low-Cost Carrier Terminal (LCCT), here, into a global cargo and logistics hub this year.
According to people with knowledge on the matter, AirAsia wants its headquarters to remain at the LCCT for at least another year.
The LCCT is a two-storey building and the AirAsia group occupies half of the second floor.
“AirAsia’s new headquarters at Kuala Lumpur International Airport 2 (klia2) was supposed to be ready when the airport opened.
However, it is having funding issues… AirAsia can’t seem to make up its mind and comply with the terms and conditions,” a source said.
“AirAsia requested the government to allow the group to maintain its office at LCCT up to early next year while it decides on how and when to develop its new facilities at klia2.
But the government has rejected the request.
“AirAsia knew three years ago that it was supposed to have the building ready when klia2 opened,” said a source.
The source added that AirAsia is appealing to the prime minister to allow the group to stay at the LCCT.
For the full report of NST 1-6-2014 please read HERE.
Now Everyone Can See The Real Facts:
April 2012: there were talks of AirAsia would not be using KLIA2 – there was a precedent in Sabah where a new airport was built and used by other airlines but AirAsia refused to move until this day;
1-4-2014: AirAsia issued a press statement stating that it will stay put in LCCT despite the completion of KLIA2 and the reason stated was security and safety of KLIA2, HERE;
Ms BK Sidhu, the editor of Star Business, who is known to have published an article to mislead the investing public that the “IPO share of AirAsia X will be over subscribed by 5 to 6 times”.
2-4-2014: With the help of the highly acclaimed editor of Star Business, Ms BK Sidhu, the Star published a front page story headlined “AirAsia: Won’t budge“.
A few other related stories appeared in the Star Business on the same day. As she has such amazing capabilities, Ms BK Sidhu should perhaps be appointed as the de facto head of Spinning Department in AirAsia, especially after she was caught publishing a grossly false report that “IPO share of AirAsia X will be over subscribed by 5 to 6 times”.
The story on Maybank Investment having to pump in RM39 million to help AirAsia X to stabilise its IPO price, HERE.
When an editor is caught in publishing false information, the very least the management of The Star should do is to suspend the editor or remove the person from the position.
But Ms BK Sidhu is still the editor of Star Business. It would appear that there is no other “professional” journalist in Star Business to take over as editor of Star Business. So pitiful!
So, for as long as Ms BK Sidhu is the editor of Business Star, all readers must be cautious because the accuracy of the stories published cannot be assured.
On April 28, 2014, YB Datuk Nur Jazlan, MP for Pulai and Chairman of Public Accounts Committee (PAC) was led by the nose by AirAsia to be its “emperor apologist”.
Instead of the said PAC Chairman overseeing and scrutinising government expenditures, he was seen performing damage control for AirAsia. At that time, ICAO had certified that KLIA2 was safe and the architect has issued CCC stating the KLIA2 was completed and fit for operations. Please read HERE, HERE and HERE.
With the above backdrop, it was clear that at all material times AirAsia was not ready to move to KLIA2 for the sole reason that it had taken MAHB, Khazanah and government for granted because MAHB, which is under the sole control of Khazanah and indirectly the government, had been subservient to AirAsia in the past, especially during the reign of the Badawi administration.
As we can see from examples:
The Rural Air Service (RAS) for Sabah and Sarawak was taken away from MAS and given to a totally new company known as Fly Asian Express Sdn Bhd a.k.a FAKS. FAKS had no track record of operating air services. The only track record it had was that its major directors and shareholders were from AirAsia.
FAKS was given the 2-year RAS contract and a subsidy of RM250 million. When RAS was under MAS, MAS was paid a subsidy of only RM125 million, half of what was given to FAKS. Please read HERE.
After less than a year, FAKS not only failed to performed the RAS but caused 7 aircraft of the total 14 to be grounded with one of which was cannibalised for spare parts.
The FAKS’ RAS contract was prematurely terminated and FAKS was allowed to keep the RM250 million subsidy. A few months after the termination of the RAS, FAKS changed its name to AirAsia X Sdn Bhd.
The Badawi Administration further rewarded AirAsia X by allowing it to keep the Air Operation Certificate (AOC) despite its bad track record during RAS. Please read HERE, HERE.
AirAsia was allowed to owe about RM125 million Airport Taxes for many years, which sum had already been paid in advance by the passengers to AirAsia.
When pressured to pay the outstanding Airport Tax, the Badawi Administration instead of charging interest for the said outstanding airport taxes, it granted an absurd 30% discount to AirAsia.
MAHB and Ministry of Transport must stand firm and not be manipulated by further lies or spins
It is now timely for the Government to stand firm in its decision to close down LCCT and turn it into a global cargo and logistic hub.
The Government must not be seen to be dancing to the tune of a recalcitrant AirAsia which would not hesitate to tarnish the image of the country for its own interest, as could be seen from its allegations of safety issue when KLIA2 was about to be opened and when the nation was facing with the tragedy of the missing MH370.
In any case, the question of AirAsia’s headquarters not being ready is not the responsibility of MAHB or Government or Malaysia. Malaysia does not owe AirAsia a living.
It was all due to AirAsia’s innate attitude of taking the government and nation for granted. Decisions and plans of the authorities should not be allowed to be derailed to accommodate the selfish agenda of this obstinate company. Just close the LCCT according to plan.
