By Olivia Miwil
olivia@nst.com.my
NEW VENUE:Liow hopes carrier will operate at KKIA's Terminal 1 by year-end
KOTA KINABALU: Transport Ministry will provide assistance to help budget airlines AirAsia Bhd move from Terminal 2 to Terminal 1.
Its minister, Datuk Seri Dr Liow Tiong Lai said, they were looking to have the transfer take place by year end.
"We understand the constraints faced by AirAsia and will assist.
"For now, AirAsia has come up with some proposals and we will look into them," said Liow after officiating state MCA convention here yesterday.
On Wednesday, Prime Minister Daruk Seri Najib Razak had delivered an ultimatum that the low-cost-carrier had to move its operations as it had exceeded their time frame to do so.
KKIA's Terminal 2, where AirAsia is operating from, has exceeded its passenger capacity of two million passengers per annum (ppa). Its actual passenger volume was 3.6million ppa last year.
AirAsia has been involved in disagreement with Malaysia Airports Holdings Bhd since they were asked to move to Terminal 1 back in 2011.
They were supposed to move by August 1.
Meanwhile, Liow who is also MCA president said cabotage policy did not contribute to the higher cost of living compared with peninsular Malaysia.
Cabotage policy in Sabah has been enforced since 1980 by the Federal Government to integrate all Malaysian maritime laws under the Transport Ministry.
He said factors contributing to the expensive goods in the state were rather due to inefficiency of ports, smaller trade volume compares to peninsular's and higher cost of transportation.
"The cabotage policy, which is under Malaysia Merchant Shipping Ordinance 1952, cannot be repealed but can be liberalised.
"The ministry has rights to give certain exemptions for vessels from Klang and Johor to Sabah," he said, adding he was working closely with transporters and other in shipping lines on how to reduce costs.
Besides that, he also revealed that the federal government had proposed upgrading work on Sepanggar port here to enhance the port effectiveness to become more competititve.
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