Malaysia Airports last week unveiled its retail proposition for KLIA2,
the new permanent Low-Cost Carrier Terminal at Kuala Lumpur
International Airport (KLIA) set to open in October 2012.
The airport operator has projected RM1.2 billion (US$380 million) in
retail sales from the terminal in its first year of operations, and
urged retailers to work together with it to shape new trends in travel
The retail preview followed the Concessionaires Conference 2011 held the
day before, where Malaysia Airports proposed a new concessionaire
partnership model that defined how the airport operator and each of its
concessionaires can play a role in driving profitability, bringing value
and sustaining growth for mutual benefit.
The 10 November event was attended by close to 600 attendees
representing over 500 potential partner companies - a larger turnout
than initially expected.
Malaysia Airports Managing Director Tan Sri Bashir Ahmad: “KLIA2 will be
the standard bearer of future low-cost carrier terminals to come”.
In his welcome note, Malaysia Airports Managing Director Tan Sri Bashir
Ahmad said that that Malaysia Airports' objective is to leverage on the
popularity of low-cost travel and transform KLIA2 into a destination
that provides opportunities for leisure, shopping, tourism, business
opportunities and employment.
“KLIA2 is designed to maximise on its present and future commercial
value,” Tan Sri Bashir Ahmad declared. “It will be the standard bearer
of future low-cost carrier terminals to come, changing the face and
concept of low-cost terminals. Together with AirAsia, AirAsiaX and other
low-cost carriers, we will help to transform KLIA and KLIA2 into a
successful major regional hub for Asia Pacific.
“Malaysia is well poised to take pole position in the race for a more
substantial share of the low-cost travellers' wallet size. After all, we
are home to one of the world's largest and the most successful low-cost
Approximately 83% of international passengers traveling with low-cost
carriers travel within the Asia Pacific region, with budget travellers
representing over 40% of total travel in Malaysia, he underlined. In
presenting the retail branding of KLIA2, Malaysia Airports Senior
General Manager - Commercial Services Puan Faizah Khairuddin revealed
that the terminal will be a technology-driven, shopper-oriented travel
and lifestyle hub infused with a youthful culture.
“In KLIA2, we are creating an exciting retail adventure that embodies a
new and differentiated retail experience, where services are a step
ahead, facilities are future-oriented, offerings are robust, and
“KLIA2 is not just an airport. It is an airport in a mall designed to
maximise commercial offerings. KLIA2 boasts one of the highest
percentage of retail space offered by any commercial airports and will
be the ultimate travel retail platform to showcase brands, products and
“KLIA2 will offer both the space and facilities to accommodate huge
numbers of passengers. A KLIA2 retailer can expect to be part of a
thriving shopping scene that will see a projection more than RM1.2
billion in sales in the first year alone,” said Khairuddin.
KLIA2 will offer 35,200 sqm of commercial space, spread across 225
tenant lots for retail (118 lots), food & beverage (80) and services
(26). All these will be at high traffic and high visibility areas, each
ranging from 15 sqm to over 300 sqm in size. The offerings will be in
the form of open bars and island cafes, duplex storefronts and a duty
free walkthrough placed at the start and end of the Sky Bridge, linking
the main terminal, flight zones and satellite area. Additionally, the
new hub will incorporate a movie and sports lounge and a kids' zone
providing retailers with a more thematic or destination retail approach.
As part of its corporate responsibility programme to support the
development of SMEs (Small Medium Enterprise), Malaysia Airports will
also be dedicating 5% of the commercial space to new entrepreneurs,
providing them with valuable businesses opportunities in an
international airport environment.
According to a survey undertaken by Malaysia Airports on low-cost
travellers, 67% of them are between the ages of 22 to 44 travelling an
average of once every two months. Additionally 43% of the travellers are
white collar with high disposable income and the average amount of time
they spend at the airport is two hours. All in all, these are premier
travellers that would be passing through KLIA2, and with passenger
movements in KLIA2 set to hit 30 million in five years, there is a huge
opportunity to tap on the potential of this consumer group, Khairuddin
“Our aspiration is to change the mindset of these travellers, making
them realise that their vacation begins and end at KLIA2,” she said. “We
want to engage them and give them an experience that is ELITE -
Experiential, Liberating, Innovative, Thrilling and Ever-changing - so
that they will keep coming back to find out more. In short, we want them
to be 'Be Curious'.”
Malaysia Airports unveils its 'Be Curious' retail branding for the new
KLIA2 at a special preview launch
Khairuddin urged potential retailers to keep those five elements in mind
when conceptualising their stores for KLIA2, i.e. 'Destination:
Curious'. “Curiosity is a way of life. It's what keeps your business
fresh. It's what keeps your shoppers coming back. Curiosity makes KLIA2
what it is,” she declared.
“The commercial spaces will be designed for success, balancing the needs
of retailers and customers. We will work together with retailers to
stimulate customers' senses and empower them to do things their way.
Opportunities will be there to maximize on technology, marketing
platforms, trends and services.”
Open tenders for KLIA2 will be carried out beginning of next month, and
the entire tender exercise is expected to be completed by July next
year, Khairuddin revealed.
Because of the festive season, tenders will be carried out in two
batches: the first batch beginning in December (before Christmas) and
the second on 15 February 2012 (following the Chap Goh Meh celebration).
The airport operator aims to clear 20-30% of the tenders during the
first round, and the rest in the second round.
On how the evaluation process will be carried out, Khairuddin said the
evaluation committee will be made up of different functions and
selection will be “outcome-driven”, based on optimal value to both the
airport and to passengers.
Existing tenants at the current Low-Cost Carrier Terminal (KLIA-LCCT)
will not automatically be granted a space in the new terminal,
Khairuddin said. While a good working partnership is useful, they will
still have to go through the tender process. KLIA-LCCT has 61 outlets
across 9,259 sqm of commercial space.