AirAsia hopes klia2 completion issue rectified soonest possible

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KUALA LUMPUR (Nov 4): AirAsia Bhd hopes issues on the perceived completion of the RM4 billion klia2 will be rectified as soon as possible.

AirAsia chief executive officer Aireen Omar said this was to minimise disruption to low-cost airline AirAsia's operations at the terminal in Sepang, Selangor.

"We hope that they would able to rectify any issues, as soon as possible.

Be it CPC (certificate of practical completion), tarmac, walkalator, or apron, these would ultimately led to disruption to the (daily) operation," Aireen told reporters after the launch of AirAsia's in-flight WiFi services here today.

Aireen was responding to The Edge Financial Daily report yesterday that klia2 had not obtained its CPC, six months since its opening on May 2 this year.

Malaysia Airports Holdings Bhd (MAHB) said in a separate statement today that the yet-to-be issues of CPC was due to "material contractual obligations" that have not been fully met by the contractor.

"Prior to the issuance of the CPC, the contractor is under an obligation to complete all works to the satisfaction of MAHB.

"MAHB has notified the contractor of its intention to impose liquidated damages (LAD), and the LAD will continue to apply in accordance with the terms of the contract," MAHB said.

Regarding the plunge in fuel prices on lower crude oil prices, Aireen said it would definitely benefit the aviation industry.

She was, however, reluctant to give any cues about the impact of cheaper jet fuel on AirAsia's third-quarter financial results.

"It will result in some cost saving, not only for us, [but] for AirAsia X Bhd as well," she said, but declined to elaborate further about the loss-making long-haul sister company.

Reuters reported Brent crude oil fell 37 cents at US$84.41 a barrel on Tuesday, extending losses to a fourth session after top oil exporter Saudi Arabia cut prices to the US.

The cut hammered oil prices on Monday as it underscored Saudi efforts to fight for market share in the world's largest oil consumer, while raising prices to Asia and Europe.

The absence of signs that the Organisation of the Petroleum Exporting Countries (OPEC) could curb output in a well-supplied market, also continued to weigh on sentiment.