Najib: No decision on Labu LCCT yet

Deputy Prime Minister Najib Abdul Razak today threw a twist to the ongoing saga over the building of a new low-cost carrier terminal in Labu, Negeri Sembilan.

He said that the government has yet to decide on a new airport in Labu, located less than 10km away from the KL International Airport's (KLIA) and to be exclusively used by budget carrier AirAsia.

"We are looking at it but have yet to make any decision. I cannot pre-empt the decision by making an announcement," he said.

His announcement today was in contrast to a disclosure by Transport Minister Ong Tee Keat on Dec 21 that the government has approved the RM1.6 billion airport.

Ong had said then that the new airport - to be called KLIA East @ Labu - would be jointly built by AirAsia and conglomerate Sime Darby on a 2,800-hectare site in Labu under a private finance initiative.

Since then however there had been a public outcry over the necessity of four airports serving Kuala Lumpur with many critics saying AirAsia should just make use of the present LCCT in Sepang as it will soon be expanded and incorporated with the KLIA, with possibility of a new runway added.

Najib to meet AirAsia CEO

In an exclusive interview with Malaysiakini, AirAsia chief executive office Tony Fernandes said that the new airport was necessary for the survival of his budget carrier.

The AirAsia boss will also be meeting with Najib next Friday to press his case for the new airport.

And judging by Najib's announcement today, Fernandes must be at his best in putting forward his case before the incoming premier.

Talking to reporters this morning, Najib said that the government was studying the Labu LCCT proposal to see "if we can go ahead or we need to make a different arrangement".

If the government gives the green light for the project, the new LCCT is expected to be ready by March 2011.