AIRASIA chief executive officer Datuk Seri Tony Fernandes is a happy man with the confirmation that a new low-cost carrier terminal (LCCT) will be built by 2011.

He feels it is a step forward.

Deputy Prime Minister Datuk Seri Najib Tun Razak announced in the mini-budget that Malaysia Airport Holdings Bhd (MAHB) would build and operate a new LCCT at the KL International Airport at an estimated cost of RM2bil ($832.8mil).

"It's a good step, but we hope MAHB will still do more on its part.

"We can't rest on the airlines and the Government to do all the work," Fernandes said yesterday.

He added that he hoped MAHB would impose fair charges commensurate with the RM2bil investment.

Asked if AirAsia had been affected by the economic crisis, he said, "No".

"On the contrary, we've been having good growth. We're taking a positive stand on this and reducing our cost structure.

"Value is key for our customers and what we're doing is giving them better value and lower fares," he said.

Asked if he thought the measures announced in the mini-budget would help AirAsia, he replied: "What the Government has done, it's good.

"Now we have to ask MAHB to play its part in lowering the cost structure for the consumers as well. They should also give incentives for all airlines to promote growth."

Fernandes added that he had no plans to lay off workers. Instead, he was hiring more people. -The Star/ANN