State govt still negotiating with AirAsia on proposal to turn S’wak into LCCT hub

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Abang Johari speaking to reporters after delivering a keynote address at the inaugural Sarawak Dialogue today.

KUCHING: The state government is still in the process of negotiating with AirAsia Berhad on the latter’s proposal to turn Sarawak into a low-cost travel hub.

Chief Minister Datuk Patinggi Abang Johari Tun Openg however assured that the state government would collaborate with AirAsia for the plan to be materialised.

He said the location for the low-cost carrier terminal (LCCT) here had been decided but declined to reveal it to prevent unnecessary spiraling of the price of the designated land.

“To be fair, we are discussing with AirAsia, which will be a win-win-situation for AirAsia in Sarawak.

“Tony (AirAsia Group chief executive officer Tan Sri Tony Fernandes) wanted Kuching to be their hub and he has his plan. So for us we will look from that perspective because we want to make sure that everybody will gain,” he told a press conference after delivering a keynote address at the inaugural Sarawak Dialogue here today.

Abang Johari welcome AirAsia’s plan to turn Sarawak into its low-cost travel hub saying more connectivity would boost more tourist arrivals in the state.

He believed that when there are more tourists coming, there would be more hot spots.

“This means our food operators, our hotel, our craftsmen, our cottage industry, will benefit.

“So we are looking at it from that perspective,” he said.

Tony, who was also present at the press conference, said they chose Sarawak because it is fantastically located.

“Sarawak is a brilliant point between North Asia and Australia. We see it as Dubai of this part of the world.

“People come out from Australia can stop in Kuching before they go to China and vice-versa; China, Korea and Japan can stop in Sarawak for few days and go down to Australia.

“I think it is an equitable distance and it’s a great location and that is why I am very keen to have our hub here,” he said.

Tony noted that the attraction of Sarawak to them is the low cost; ability to drive the low cost down.

“When you open a terminal, one of the biggest costs is water and power. Water and power are abundant and reasonably cheaper in Sarawak,” he added.

Ask when the low-cost travel hub in Sarawak will be in operation, Abang Johari answered in jests: “as long as Tony agreed to our terms.”