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Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE SUNWAY LAGOON, KUALA LUMPUR 
Tarikh/Date 	: 	18/07/99 
Tajuk/Title  	: 	THE 9TH ACI-PACIFIC REGIONAL 
			ASSEMBLY AND CONFERENCE 


      
       I  am honoured to be invited to this reception  and
  to  welcome you to Malaysia, for the 9th Airport Council
  International Pacific Regional Assembly and  Conference.
  It   is  indeed  a  pleasure  to  see  a  gathering   of
  specialists  at this conference where you will  be  able
  to  share  views  and  knowledge on airports  and  their
  future  outlook. I note that you have chosen  the  'Next
  Generation  Airports' as the theme of  this  conference.
  It  is  most  appropriate considering the challenges  of
   the new millennium.
  
  2.    Malaysia  is relatively young in the provision  of
  air   transport  and  aviation  services.   Since  Civil
  Aviation  started in this country in the early  forties,
  we have grown faster than we expected. Today, we have  a
  network  of  five  international airports,  15  domestic
  airports  and  18 other small airports. Since  the  late
  eighties,  in response to our rapid traffic  growth,  we
  had  embarked  on a programme of airports infrastructure
  development,  planned to cater for the accelerated  pace
  of  economic growth.   Indeed, much forward planning  is
  essential as we do not want to be caught again  with  an
  airport  that is inadequate and yet is unable to expand.
  Subang  International Airport was opened in 1964 with  a
  projected  capacity of 400,000 passengers per annum  but
  at  the  time  when we moved to the new KL International
  Airport  (KLIA) last year, Subang was trying  to  handle
  17 million passengers.
  
  3.    As  you are aware finding land and a good location
   for  an airport is no easy matter.  While everyone wants
  a  convenient  airport, no one wants  it  anywhere  near
  where  he  lives.  Landowners often refuse to  surrender
  land   for   an   airport  even   when   offered   hefty
  compensation.   In  planning for an airport,  especially
  one  that is to serve the capital and is most likely  to
  expand  rapidly,  it  is important  that  the  long-term
  needs  be given serious consideration.  One just  cannot
  move airports or even build secondary airport every  few
  years  simply  because  it  is  not  possible  to   find
  suitable  sites.  If one has to build a new  airport  it
  must  be  planned to cater for expansion over  the  next
  hundred years if not more.
  
  4.    And so when we were planning for a new airport  to
  replace Subang International Airport, we had to  find  a
  site  that is big enough for expansion to cater for high
  traffic  growth,  yet  located at a reasonable  distance
  from  the city.  The new airport at Sepang now  has  two
   runways  and  can cater for 25 million  passengers.   It
  has  room for as many as five runways and cater for  125
  million passengers.
  
  5.    Perhaps  this  need will never  arise  even  in  a
  hundred  years.   But  the land will  never  be  wasted.
  There  are a thousand profitable uses for land  even  if
  the economy does not grow much.  At the present rate  of
  population  growth Malaysia will have  a  population  of
  more  than 70 million people in another 100 years.  That
  alone would mean a requirement for a bigger airport.
  
  6.     KLIA  has  just  completed  its  first  year   of
  operations  last month.  I am told that the airport  has
  been  ranked  third  in the world by IATA  for  business
  passenger  satisfaction.  The developer of the  airport,
  KLIA  Berhad, has also been nominated for excellence  in
  engineering work.  These are remarkable achievements  by
  a  developing country in such a short space of time.   I
  would  like  to  congratulate KLIA for  receiving  these
   recognitions, which I think it rightly deserves.
  
  7.    What has not been generally noticed is the move in
  24  hours  of  the operations from the  old  Airport  in
  Subang    to   KLIA   without   interrupting    flights.
  Considering  the  number of systems and  the   hardware,
  the   staff  and  all  else,  this  is  quite  a   feat.
  Admittedly  there  were hitches  during  the  first  two
  weeks.   But  these were overcome much  sooner  than  is
  usual.
  
  8.    The success of the development of KLIA goes beyond
  the   physical   construction  of  the   airport.    The
  implementation  of a deliberate transfer  of  technology
  programme  has enabled local companies to  keep  abreast
  with the major players in the airport industry.
  
  9.    Companies  such as KLIA Berhad, the  developer  of
  the   airport,  Sapura  and  XY-Base,  the  IT  solution
  providers, and Malaysia Airports Sdn. Bhd., the  airport
  operator,  have  started  to  offer  their  skills   and
   experience  in  developing and managing airports  beyond
  our  shores.   I  am glad to note that the  relationship
  and   trust   developed  during  the  hectic   days   of
  construction  have  continued. The sponsorship  of  this
  conference, today and for the next three days,  by  both
  local  and  international  organisations  is  indeed   a
  reflection of ongoing collaboration and coexistence.
  
  10.   Significant  changes  are  now  taking  place   in
  various   disciplines  as  we   move   into   the   next
  millennium.   While  technology and  innovative  systems
  would  continue to dictate efficiency, the human  factor
  still  remains  relevant and crucial to the  success  or
  otherwise of these systems.  At the end of the day  what
  determines  success  is the efficient  delivery  of  the
  services by the operators to the various airport  users.
  They  all have their specific needs.  The tourists,  the
  business   traveller,  the  airfreight  companies,   the
  charter  people  and  the travel agents,  the  shop  and
   restaurant  operators, indeed the  Government  agencies,
  all  these have differing needs and all must be  catered
  for  efficiently, and expeditiously.  It is in achieving
  this  that  the  measure of an airport's  efficiency  is
  determined.
  
  11.   Airports are anything but natural creations.   But
  not  being  natural does not mean that  they  cannot  be
  made  compatible  with nature.   KLIA for  example,  was
  built  with  this  in  mind.   Dr  Kisho  Kurukawa,  the
  designer  of KLIA, who is with us tonight,  as  well  as
  all  those  local  and foreign parties involved  in  its
  construction  deserve  to  be  given  credit  for  their
  efforts.   They  worked tirelessly  within  the  limited
  timeframe given to them to build KLIA.  The 'Airport  in
  the  Forest and Forest in the Airport' concept which was
  applied in KLIA design and construction was intended  to
  bring   concrete  and  steel  as  close  to  nature   as
  possible.   I  believe  they have largely  succeeded  in
   doing this.
  
  12.   Now,  It  is  up to you as airport specialists  to
  expand   the  use  of  airport  facilities  beyond   the
  immediate  travellers. I can foresee the  expanded  role
  of  airports  of  the future.  Airports already  play  a
  significant  role  in  tourism  by  being  gateways   to
  tourists  and projecting a nation's first impression  to
  visitors.     Airports   can   also    become    leisure
  destinations  in  themselves.  Having been  built  as  a
  major  transport  infrastructure, an  airport  could  be
  easily  transformed  from  a mere  transit  point  to  a
  centre  for  all  kinds  of  businesses  and  activities
  related to air transport needs.
  
  13.   The Sepang Gateway Recreation Park with facilities
  such  as F-1 Motor Sports Circuit, Go-Kart Circuit, Golf
  Course,   Wetland  recreational  facilities  reflect   a
  beginning towards this expanded role.
  
  14.    Airports  have  become  more  transnational   and
  global.    We   are   in  fact  managing   transnational
   communities  --  people from all  over  the  world  with
  varied  and  different  requirements  and  tastes.   The
  airport is not simply a space for landing, boarding  and
  taking  off any longer.  Seamless travel is now becoming
  more  of  a reality.  Superior customer service, comfort
  and  ambience  used  to  be the  domain  of  hotels  and
  airlines.    More  and  more  airports  now  are   being
  transformed and uplifted to provide equally high  levels
  of  service  and comfort.  Probably, the time  has  come
  for  airports  to  adopt the hotel star  classification;
  five  star, four star, three star and so on.   Focus  on
  service  quality level improvement  should be  the  rule
  of  the game for airports of the future.  Over and above
  that,  airports are now required to play a more enhanced
  role  in  trade, industry, social and cultural promotion
  and  exchanges.  In many instances, airports have become
  an  integral part of major urban and sub-urban  centres.
  Airports must perform all these diverse functions  while
   maintaining their primary responsibility to receive  and
  despatch  aircrafts  efficiently and  safely.   When  we
  build  an  airport we are really building  a  city  with
  sophisticated  urban  functions all  under  figuratively
  speaking  one  big roof. Many studies  and  papers  have
  been  presented by ACI and bodies such as Air  Transport
  Action  Group (ATAG) on increasing the awareness of  the
  community  as  to  the benefits that an airport  brings,
  both  socially  and economically, to the  community  and
  the  nation.  ACI deserves credit for playing a role  in
  this.
  
  15.   Figures  quoted  in these studies  on  employment,
  investment  opportunities and business growth,  and  the
  multiplier effect on the economy as a whole, are  indeed
  helpful  to change the negative perceptions people  have
  on  airport  expenditure.  Subang, the old international
  airport,  was said to be a white elephant  when  it  was
  built.  What happened was that the Subang airport helped
   spur  massive development of its neighbourhood.   KLIA's
  construction  was  also deemed an extravagance  by  some
  parties.   I  am  confident it will rapidly  prove  that
  projects  such  as  KLIA  are  indeed  necessary  for  a
  country's  long  term  growth  and  prosperity.   Impact
  studies  in  areas related to construction  of  airports
  should  be  continued by organisations such as  ACI,  as
  the voice of airports of the world.
  
  16.   The third quarter of 1997 saw the economies of the
  region  suddenly  plunging into recession  and  turmoil.
  This  affected  disposable income, and as a  consequence
  lesser  business   and  leisure travel  by  air.  Though
  airports   are  generally  more  resilient  to  economic
  downturns  than  airlines,  this  time  around  however,
  airports  in this region have been affected, after  more
  than  10  years of positive growth.  Prolonged downturns
  cannot  but  have adverse effect on airports.   As  with
  many  other airports in this region, Malaysian  airports
   too  experienced declines in traffic last  year,  though
  we  seem  to  be improving this year.  Nevertheless,  we
  need  to  be ready for the next round, should  there  be
  one.
  
  17.   ACI can help to guide airports play a more  direct
  role  in determining their destiny.  Previously airlines
  took  the lead in marketing and in fact determining  the
  airports  future.   I am pleased to note  that  airports
  are  already  more  directly involved  in  air  services
  negotiations,  and  determining  aircraft  schedule  and
  slot  times, thus enabling them to market directly their
  facilities    and   services.   These    are    positive
  developments  and indicate that airports  have  come  of
  age   without  losing  their  concerns  for  safety  and
  efficient operations of aircrafts.
  
  18.   Furthermore,  airports  could  cooperate  in  many
  areas  to enhance their own performance and development.
  Organisations,  such  as ACI, offer  excellent  platform
  for  continuous  collaboration and  cooperative  efforts
   among member airports.
  
  19.   You  have  laid  out a wide range  of  interesting
  topics  for discussion at this conference.  I hope  this
  congregation  will  further accelerate  the  sharing  of
  expertise and knowledge among airport operators  in  the
  Pacific   Region.  I  urge  delegates   to   participate
  actively  in this ACI Assembly and Conference  aimed  at
  viewing   airports  in  a  new  perspective,   i.e.   as
  destinations   in  themselves.    I   also   hope   that
  Malaysia's   own   new  generation   airport,   the   KL
  International Airport, will offer a learning  experience
  to  airport  developers and operators certain  knowledge
  on airport construction and operations.
  
  20.   Finally, may I thank Malaysia Airports  Sdn.  Bhd.
  for  bringing  this  conference to Malaysia.   And  with
  that,  I  hereby  declare this 9th ACI-Pacific  Regional
  Assembly and Conference open.
  
  
 



 
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