HYPOTHESIS 1: OPERATIONAL EFFICIENCY PROBLEMS THAT HAS BEEN REPORTED BY LCCs SUCH AS BAGGAGE HANDLING SYSTEMS HAS LEAD TO DISSATISFACTION OF CUSTOMERS.
- AN OPTIMISED AND STREAMLINED BAGGAGE HANDLING SYSTEM WILL CREATE GREATER PASSENGER SATISFACTION AS WELL AS INCREASED OPERATIONAL EFFICIENCY.
ADOPT BATCH BUILDING: A TECHNIQUE USED IN BAGGAGE HANDLING SYSTEMS TO EFFICIENTLY PROCESS AND TRANSPORT MULTIPLE BAGS TOGETHER AS A GROUP OR BATCH.
- IMPROVED SORTING ACCURACY: REDUCE THE CHANCES OF ERRORS OR MISROUTING.
- INCREASED EFFICIENCY: THE SYSTEM CAN OPTIMIZE THE USE OF CONVEYOR SPACE AND HELPS REDUCE PROCESSING TIME AND INCREASE OVERALL SYSTEM THROUGHPUT.
- ENHANCED LOAD BALANCING: HELPS BALANCE THE WORKLOAD AND PREVENT BOTTLENECKS, ENSURING SMOOTHER OPERATION OF THE BAGGAGE HANDLING SYSTEM.
MAKE BAGGAGE STORAGE MULTI-PURPOSE: A SYSTEM THAT PROVIDES STORAGE SOLUTIONS FOR VARIOUS TYPES OF BELONGINGS OR LUGGAGE IN FLEXIBLE MANNER.
- OPTIMISE THE BAGGAGE HALL FLOOR SPACE
- PREVENT THE UNNECESSARY CIRCULATION OF BAGS.
HYPOTHESIS 2: EFFECTIVE CONNECTIVITY AND TRANSFER OPTIONS ARE CRUCIAL FOR LCC OPERATING AT KLIA 2.
- THE ERL KLIA TRANSIT IS A COMMUTER RAIL SERVICE THAT OPERATES AS AN AIRPORT RAIL LINK TO KUALA LUMPUR INTERNATIONAL AIRPORT (KLIA). ITS CONNECTS KL SENTRAL, KUALA LUMPUR'S MAJOR TRAIN STATION, TO KLIA AND ITS LOW-COST TERMINAL, KLIA2.
- -CAN TRANSIT UP TO 540 PASSENGERS AND LOW FARES
FREE SHUTTLE BUS
- - THE FREE 24/7 SHUTTLE SERVICE TO TRANSFER BETWEEN KLIA AND KLIA 2 THAT RUNS EVERY 10 MINUTES. THE SHUTTLE ROUTE IS FROM KLIA-KLIA2-LTCP.
- -CAN TRANSIT BOUT 30-40 PASSENGERS AND NO FARES
Hypothesis 3 : The infrastructure and facilities in LCCT give huge impact of developing KLIA2
- The lack of complete facilities in LCCT compared to KLIA 2 , such as the lack of check-in counters causes the registration system to move slowly . There also lack of frontline staff who responsible to manage the passangers registration . The important of having enough frontline staff is they are required to show their concern in order to facilitate the customers’ movement, customer belonging to make sure the passengers feel enjoy to travel and all the process in airport will going smoothly. In other words, frontline staff is the important facilities in the airport to satisfy customer needs.
- The excellent facilities with modern looking and particularly attractive architecture give more attraction from passanger to visit KLIA2 rather than LCCT .
Expectation for having an excellent airport that performs the service by providing
sufficient trolleys and convenience stores in order to accommodate the tourists’
requirements . It was decided that the low-cost terminal’s structure would be simple and basic, for example it would not include aerobridges, travelators or escalators, and it would be built quickly . So thats why LCCT were replaced with KLIA2 that have complete facilities and more customer-freindly for all traveller .
The highly competitive market condition in the airport industry pressurizes airport
operators to deliver high-quality services. In order to achieve a good delivery system, customers’ needs and expectation must be first understood by the airport provider. Based on the findings, the lowest level of service quality came from user friendly and safe pathway. Most customers complain about the distance of the pathway heading to airplane
departure area, which is too far from the departure hall. User friendly and safe pathway are
the most important elements that an airport provider should prioritize to improve service
HYPOTHESIS 4: AIRASIA, THE MAIN LCC IN MALAYSIA HAS COMPLAINED ABOUT THE HIGH FEES CHARGED BY THE AIRPORT OPERATOR, MALAYSIA AIRPORTS HOLDINGS BERHAD (MAHB), AS WELL AS THE QUALITY OF SERVICE PROVIDED AT THE TERMINAL.
The passenger service charge, commonly known as the airport tax.
- Airports typically charge airlines a fee per passenger to cover the cost of operating the terminal and providing services to passenger.
- Air Asia argued that the passenger service charge at KLIA2 was significantly higher than that of other low-cost carrier terminals in the region, making it less competitive for the airline.
Air Asia has also raised concerns about other charges, such as landing fees and aircraft parking fees, which it believes are exessive.
- The airline contends that these charges add to the overall operating costs and hinder its ability to offer affordable fares to its customer.
Air Asia, being a prominent low-cost carrier airline, has been vocal about the high fees charged by MAHB for using KLIA2.
- The airline has expressed concerns over the cost structure, claiming that it is disproportionate to the services provided and has negatively impacted its profitability.
- Air Asia has argued that the fees charged by MAHB are too high and that they are driving up the cost of air travel in Malaysia. Air Asia has also accused MAHB of providing poor service and falling to address operational issues at the terminal, such as long queues and flight delays.
HYPOTHESIS 5: DIFFERENTIATION IS CRUCIAL FOR LCCs TO STAND OUT FROM COMPETITORS AND OFFER UNIQUE SERVICES. FAILS TO PROVIDE OPPORTUNITIES FOR DIFFERENTIATION MAY CAUSED STRUGGLE TO LCCs.
- Customer Experience Concerns: LCCs expressed concerns about the limited passenger experience enhancements at KLIA2. They highlighted the importance of providing facilities like comfortable waiting areas, improved seating options, variety of dining and retail choices.
- Pricing Pressures: LCC reported increased pricing pressures due to cost overruns at KLIA2.
HYPOTHESIS 6: COST OVERRUNS AT KLIA2 CAN LEAD TO INCREASED OPERATIONAL EXPENSES FOR AIRLINES, INCLUDING HIGHER LANDING FEES, MAINTENANCE COSTS AND OTHER AIRPORT-RELATED CHARGES.
- AirAsia, one of the major LCC operators in KLIA2, expressed their dissatisfaction with the airports cost overruns and delays during its construction. They claimed the additional costs would affect their competitiveness and profitability.
- According to an article by The Star, the cost of KLIA2 increased from the original estimate of RM2 billion to RM4 billion due to various factors such as delays, design changes and additional work.
- PROBLEM STATEMENT: WHY DOES THE MAIN LOW-COST CARRIER (LCCs) IN MALAYSIA IS NOT SATISFIED AND WHAT ARE THE POSSIBLE REASONS FOR IT?
- INTRODUCTION: KLIA2 IS A TERMINAL AT KUALA LUMPUR INTERNATIONAL AIRPORT (KLIA) THAT WAS BUILT TO REPLACE THE LOW-COST CARRIER TERMINAL (LCCT). THE LCCT WAS THE PREVIOUS TERMINAL USED BY THE LOW-COST CARRIERS (LCC) IN MALAYSIA. KLIA2 WAS DESIGNED TO PROVIDE MORE SPACE AND BETTER FACILITIES FOR LCC PASSENGERS, AND IT BECAME OPERATIONAL IN MAY 2014. HOWEVER, LOW-COST CARRIER IN MALAYSIA MAY HAVE NOT SATISFIED WITH THE SITUATION AT THE NEW TERMINAL.
- CONCLUSION: OVERALL, KLIA2 IS A KEY COMPONENT OF MALAYSIA'S STRATEGY TO PROMOTE LOW-COST AIR TRAVEL AND BOOST ITS TOURISM INDUSTRY. HOWEVER, BY PROVIDING A DEDICATED TERMINAL, MALAYSIA CAN ATTRACT MORE BUDGET-CONCIOUS TRAVELERS AND COMPETE MORE EFFECTIVELY WITH OTHER DESTINATIONS IN THE REGION.