Kuala Lumpur to build Asia's second low-cost terminal

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The government is set to approve the construction of a dedicated terminal for budget carriers similar to the one being developed at nearby Singapore Changi airport

Malaysia is to approve plans for a low-cost carrier terminal at Kuala Lumpur International airport this week, according to local reports. The project has been debated for several months, in particular whether to build the $26.3m terminal at KLIA or at the old Subang airport, which is closer to Kuala Lumpur.

KLIA airport authority Malaysia Airports Holdings will build the terminal as part of the next phase of its expansion programme, due to begin in the second quarter of this year. The project already includes a second satellite building with 37 gates and 42 parking bays, due to open in early 2007. Passenger capacity at the airport will be doubled to 50m a year.

Planning on the low-cost terminal was delayed while the local aviation industry debated whether or not to reopen Subang airport, which was closed in 1998 after KLIA reopened following extensive renovations.

KLIA handled more than 20m passengers in 2004, up 15% from 17.4m in 2003.