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AirAsia and Sarawak in discussion to build LCCT in Kuching

KUCHING: The Sarawak government is in talks with AirAsia Bhd to build a low-cost carrier terminal (LCCT) in the city, with the cost to be split evenly between the two parties.

The LCCT is set to become an integral part of Sarawak’s transportation development masterplan by connecting the terminal area to the Light Rail Transit (LRT) system.

If the plans go through, this is expected to boost the tourism, health, service and handicraft sectors, thereby providing economic returns to the state and its people.

Chief Minister Datuk Patinggi Abang Johari Abang Openg, when disclosing the matter, said the state government is considering the proposal by AirAsia Group Chief Executive Officer, Tan Sri Tony Fernandes, who intends to make Sarawak a regional low-cost carrier hub.

“I cannot disclose the proposed location yet to prevent speculation and a subsequent increase in the price of the area’s real estate. However, the construction (of the LCCT) will only commence once Tony agrees to the state government’s terms.

“As the project is beneficial to the state, we want to ensure that the locals gain from it,” he told a press conference after officiating the Sarawak Dialogue event, here today.

Meanwhile, Fernandes said AirAsia is prepared and committed to begin the LCCT construction in Sarawak after taking into account the state’s strategic location as a midpoint route between Australia, China, South Korea and Japan.

“The outcome of the LCCT construction would only enhance AirAsia’s efficiency and we are serious about making the state as the catalyst,” he said.

Abang Johari said the state government is also mulling the possibility of entering the affordable healthcare industry, but its focus is still on AirAsia.

“Perhaps after the project LCCT in Sarawak is realised, there is also potential for the development of affordable healthcare because Sarawak is often frequented by people from Pontianak, Indonesia, who come here for health treatment. The LCCT would aid connectivity between these areas and Sarawak.”

Meanwhile, Fernandes expressed the AirAsia Group’s commitment towards helping Sarawak grow its its tourism sector and said the group is confident that with the right approach the state will succeed

“AirAsia is working closely with the state and with the full support from the state government the airline can realise its plan to build Sarawak’s air connectivity and turn it into one of the airline’s key regional hubs,” he told Bernama.

He said AirAsia is looking forward to the establishment of the proposed LCCT here in order to provide better services to its passengers as well grow flight connectivity in Sarawak and increase international flights with other regions.

Fernandes said, last year, AirAsia brought in three million passengers to Sarawak. He said the LCCT would spur tourism and other economic sectors in the state.

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