Saturday, February 25, 2012

RETAILS OUTLETS SALES FOR KLIA2

THE new low-cost carrier terminal, KL International Airport 2 (KLIA to) has set a lofty target of RM1.6 billion in annual sales from its retail outlets for its opening year, once it’s fully operational in April next year.

This figure, if achieved, will eclipse the total RM1.3 billion collected by all Malaysia Airports Holdings Bhd (MAHB) outlets last year.

MAHB senior general manager (commercial services) Faizah Khairuddin was confident of the target. “At 250,000 sq m, the terminal would have 225 outlets to cater to passengers. Of these, 118 have been allocated for retail offerings, 81 for food and beverages and 26 in the services category. The higher passenger flow at KLIA2, estimated to be 45 million in 2013, will offer more potential for sales at these outlets.”

Faizah said studies conducted last year found that passengers at the Low Cost Carrier Terminal (LCCT) spend an average of RM22 per visit at the outlets, while the average passenger spend at KLIA is RM40. This, she said, highlights the importance of non-airline revenue for MAHB and airports in general.

Faizah also said the second tender for KLIA2, involving 39 outlets, will open on Feb 29 and March 6 respectively at Pan Pacific Hotel KLIA. Submission deadline is 3pm on April 3. “The winning bids will be announced this July and concessionaries expected to start operating by April 2013.”

Yesterday also saw Faizah present RM500 worth in prizes each to six lucky winner of the “KLIA Indulge Till You Fly” contest.

On the hind side. mAHB should consider the fact that this is a low-cost carrier terminal and passengers are not likely to spend hours at the terminal shopping or eating away at high end outlets.

Already there are complains by retailers at KLIA that the rental costs are the highest in this part of the world. Some have even closed shop leaving Eraman to run the outlets at the ex[enses of developing entreprenuers to do their business elsewhere. MAHB is only about money and never about social obligations.

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