Penang set to get LCCT

GEORGE TOWN: Penang is set to get a low-cost carrier terminal (LCCT) at Penang International Airport in Bayan Lepas as the airport had surpassed its maximum capacity last year.

Finance Minister Lim Guan Eng said talks with Malaysia Airports Holdings Bhd (MAHB) and AirAsia Bhd were positive on the idea of setting up a LCCT, here.

“We are almost confirmed to set up the LCCT in Penang as the discussions with MAHB and AirAsia are quite positive. We are going to work on a different frame work for the LCCT, here,” he said on the sidelines of the Penang state legislative assembly yesterday.

Lim said the setting up of the LCCT would be based on publicprivate people partnership (PPPP) framework.

“We can expand the existing airport but where to find money? That is why we are looking at LCCT so that we can get the volume and people are wiling to invest,” he said.

Lim added that the new formula would enable AirAsia to construct and pay for the new terminal at its own cost.

AirAsia group chief executive officer Tan Sri Tony Fernandes had voiced his intention to set up the LCCT during a visit to Chief Minister Chow Kon Yeow’s office recently.

Lim said the Federal Government and MAHB had difficulty finding funding for the expansion of Penang International Airport, which was the reason the government opted for the PPPP framework.

“We plan to use the same framework for the construction of Penang Port and we hope all these projects will go on smoothly as planned,” he said.

It was reported earlier that the Penang International Airport, which was designed to cater for 6.5 million passengers annually, served 7.2 million users last year.