KLIA actively bidding to be Jetstar hub

[oz_mark]

From The Star: KLIA actively bidding to be Jetstar hub



SINGAPORE: It is a competitive race and KL International Airport (KLIA) has put in an aggressive bid to be considered as the long-haul transit hub for Australia-based Jetstar Airways’ expansion strategy.

Jetstar chief executive officer Alan Joyce said KLIA, with good infrastructure, had a lot to offer.
“(Landing) rights are important and there is no airline that flies to Athens from KLIA and we need a transit stop for our European flights,” Joyce said on the sidelines of the 5th annual Asia Pacific Low-Cost Airline Congress yesterday.

 

[serfty]

Athens? Oh, I guess that's to happen when JQ finally get their Dreamliners ...

 

[JohnK]

Athens?

Could well be the first European destination for JQ. It makes sense....

 

[BiziBB]

If we can put in our votes FWIW, I think KUL would be an excellent hub, especially compared to SIN.

It's funny to see 'World's Best Airport' on the side of the trains, though kind of cute. Kind of Keating-esqe.

The Good:
The main terminal looks and works great compared to SIN T2 and T3.

Though KUL is quite a way from KL the train is a quick and nonstop 28mins and cost $12. Even the airside hotel was serviceable and cheap.

The train connections from the main entry to the satellite terminals is good. We were mainly at Terminal C (and the great MH Lounge).

It's in great shape for a 10yr old terminal, IMO.

The Bad (not too bad, just low low cost)
If JQ opted for the KUL LCCT, then that's more inconvenient, around 15mins taxi ride away and basically a large shed, before pax self-load into Air Asia jets.

Serviceable enough for local AK flights but Longhaul would suck.

The Ugly (SIN inc T3)
SIN T3 is still a mess and is hasty finish for the opening means there are a few 'putting green' holes under the carpets that invite sprained ankles.

T2 is same as ever. Both are very long and only average for getting from place to place. The inter-terminal trains and lounges are okay though.

As for the armed soldiers with machine guns and spies in the toilets (even SIN SKL First Lounge, Mrs B tells me), let's just put SIN out of the running!

What are the other contenders like? I've yet to have the pleasure of SGN or the new BKK (for us, lack of a fast train to Bangkok makes it a hassle?)

 

[Petch]

I would be surprised if Kuala Lumpur gets the business.

The Malaysian government is often nonsensical/overly emotional in its relationship with Australia (http://www.etravelblackboardasia.com/article.asp?id=50785&nav=109). Any foreign firm investing in Malaysia (without comprehensive unethical-behind-the-scenes relationships), is taking on an overly high level of political risk, in my opinion.

The government of Singapore, in relation to the same situation (KL-Singapore flights) demonstrated a much more even handed approach (although I realise Temasek has its fingers in all the pies).

I think (observed by the amount of discounting on the route) Jetstar International is struggling with KL, which is likely to impact decision making. I reckon they are merely using “active consideration” of a Malaysian base, as a negotiation tactic to bring in better offers from other airports.

I would imagine; culturally, economically, politically & geographically, a base in North West Thailand or Bangkok would be a more reasonable proposition. Great Circle Mapper
http://gc.kls2.com/cgi-bin/gcmap?PA...&MARKER=1&RANGE-STYLE=shaded&RANGE-COLOR=navy

 

[BiziBB]

I would be surprised if Kuala Lumpur gets the business.

The Malaysian government is often nonsensical/overly emotional in its relationship with Australia (http://www.etravelblackboardasia.com/article.asp?id=50785&nav=109). Any foreign firm investing in Malaysia (without comprehensive unethical-behind-the-scenes relationships), is taking on an overly high level of political risk, in my opinion.

Isn't is a beauty pageant? Each airport vies to attract airlines to get extra fees, rents etc?

If the PM or ex-PM Mahathir wants to refuse this business for local industry protection reasons, then they are accountable to their electorates nd responsible for the overall economic management of the country.

I'm confused with how KLIA might be prevented from accepting international traffic, business and rents by the government, but I suppose politics is the reason that the PM or his political masters may decide to get involved.

Does the Govt shield local airlines from competition like they do Proton Motors, thus denying KLIA a fully free bid for the business in favour of MH and AK?

How about the airline maintenance angle? Would this come into JQ's decision, by tying in a heavy maintenance contract in Thailand, for example?

I suppose most info will become public; how possible is Vietnam or a Chinese city?

BB

...I would imagine; culturally, economically, politically & geographically, a base in North West Thailand or Bangkok would be a more reasonable proposition. Great Circle Mapper

 

[JohnK]

I would be surprised if Kuala Lumpur gets the business.

Assuming that Athens would be one of the first European destinations then KUL would make perfect sense as the SE Asian hub for JQ as SQ already flies the route from SIN and TG flies the route from BKK. If JQ were to go into direct competition out of these hubs I am afraid at their pricing and service levels they are not likely to be successful.

Don't forget that back in the 80's QF used to transit at KUL on flights to ATH.

 

[NM]

I'm confused with how KLIA might be prevented from accepting international traffic, business and rents by the government, but I suppose politics is the reason that the PM or his political masters may decide to get involved.

Does the Govt shield local airlines from competition like they do Proton Motors, thus denying KLIA a fully free bid for the business in favour of MH and AK?

I don't think there is any doubt that the Malaysia government would want to attract any airline to use KUL as a regional hub. The issue is more subtle than that. JQ would still need to do a lot of business with local businesses, such as catering, cleaning, refuelling, ground handling, passenger services etc. In my experience with doing business in Malaysia, there may well be ties between the local companies that provide these services and powerful decision makers. The decision powers may be the government, or may be private companies owned by senior government members or other people in power positions. The way the service companies operate can be influenced by the pressures applied by their owners or others with significant power to yield. There are fewer checks and balances in the business process than we are used to seeing in Australia.

This does not mean its not viable to operate a business in Malaysia. Nor does it mean that all business transactions are tainted in this manner. But it is a consideration when looking to operate a business there. And I am in no way trying to infer that the same thing does not ever happen in Australia.

 

[dajop]

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I suppose most info will become public; how possible is Vietnam or a Chinese city?

Vietnam would be difficult, IIRC, due to visa issues around transit pax. Not sure about China, but for stopover and China bound traffic, I'm sure the visa issues might be bit too much hassle for many JQ pax. I'm sure KUL, BKK, KIX, SIN or even HKT are better options (PER or DRW perhaps?)

 

[docjames]

They were actively suggesting Vietnam some months ago as they've just bought into that Vietnam Airline (?Pacifica or something like that??)