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December 21, 2008

Malaysia Aviation:
Govt approves new low-cost airport plan

The Malaysian government has approved the construction of a new 1.6 billion Malaysian ringgit ($461.4 million) low-cost carrier terminal in the southern state of Negri Sembilan, Reuters reported, quoting the online version of the New Straits Times posted Saturday.

The new airport will be built under a private finance initiative by conglomerate Sime Darby and budget airline AirAsia, said Transport Minister Ong Tee Keat.

AirAsia flew about 18 million people this year using the present low-cost carrier terminal in Sepang, which can only accommodate 15 million passengers a year at maximum capacity.

The new airport will be part of an "integrated city", which will house five townships, in the town of Labu.

It will have the capacity to handle 25 million passengers a year.

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