Despite order, AirAsia refuses to move to new KKIA terminal

AirAsia will remain at the Terminal 2 of the Kota Kinabalu International Airport (KKIA) despite a ministerial order to do so, says its chief executive officer Tan Sri Tony Fernandes.

He said the move 'does not make sense' and added that it will kill Sabah tourism.

"Moving us to terminal one increases cost per passenger, there is tremendous competition in the region. If you move to Terminal 1 and you increase the airport taxes by RM35, you will kill tourism," he said after announcing the company's new global ambassador today.

"We are not into confrontation, we want to win, we want the country to win, we want to create jobs. I think we should be sitting down and find how best can we grow Malaysia and create jobs," he said.

"Ringgit is RM4, isn't it better if we focus on economy than the biggest low cost airline in Asia being forced to move terminal. More jobs being lost," he added.

Tony said although the Ministry of Transport (MoT) has two representatives on the Malaysia Airport's board, they are not getting an accurate picture.

"They should consult with the airline. We made it very clear to the ministry that we are not going to move to Terminal 1 because it doesn't make any sense," he said.

He also urged the MoT to remove its people from the MAHB's board as he claims they only get one side of the story.

"They should be independent and listen both side of stories and then decide on what's the best solution," he added.

"Every country in ASEAN is listening to AirAsia and working with AirAsia to create jobs. Why is the MAHB not engaging us," he questioned.

Deputy Transport Minister Datuk Abdul Aziz Kaprawi yesterday said all airline companies must move to KKIA Terminal 1 in the near future to accommodate more passengers.

He said the airlines had been given a directive to move to Terminal 1 on Aug 1.