LTSAAS, KLIA and the Missing Link in Malaysia’s Transport Strategy

Without a clear national policy, the Subang Airport regeneration may be chasing a dream that is structurally out of reach.

By Saleh Mohammed

“If you fail to plan, you are planning to fail.” – Benjamin Franklin

In my 31 July article, “Is Johor’s Rapid Development Properly Planned?”, I questioned whether Malaysia’s rapid growth is backed by sound planning.
Today, the spotlight is on the Ministry of Transport (MoT), and the urgent need for a long-term, integrated strategy for both the Sultan Abdul Aziz Shah Airport (LTSAAS) and the nation’s broader transportation network.

The Subang Airport Regeneration Plan

In 2023, the government approved the return of scheduled jet passenger and cargo flights to LTSAAS under the revised Subang Airport Regeneration Plan (SARP).
By May 2024, the Transport Minister confirmed jet services would commence in the third quarter.

Malaysia Airports Holdings Bhd (MAHB) began upgrades aimed at turning LTSAAS into a premium city airport by 2030, with a targeted capacity of 8 million passengers a year. Malaysia Aviation Group Bhd (MAG) pledged to deploy Firefly’s narrow-body jets there.

But the optimism was short-lived.

A Quick Take-Off, and an Even Quicker Exit

Within a year of launching direct flights, Firefly announced it would cease jet operations at LTSAAS, mirroring AirAsia’s earlier withdrawal.
MAG explained its move as part of a network optimisation strategy to enhance operational efficiency.
AirAsia’s rationale was operational consolidation to boost market position and profitability.

These official explanations mask a more uncomfortable truth: LTSAAS has severe operational constraints that make sustained jet services challenging.

A Premium Airport with Structural Shackles

Among the limitations rarely discussed in public:

• One jet movement per hour to prevent congestion.
• Operating curfew from 6am to 10pm to control noise pollution.
• Only six apron bays for single-aisle aircraft.
• Tight airspace control due to KLIA’s proximity.

These constraints limit flexibility, frequency, and airline profitability, undermining the vision of LTSAAS as a premium hub.

Is the 2030 Target a Pipe Dream?

If these structural realities were overlooked in planning, the goal of making LTSAAS a premium city airport may be more fantasy than feasible target.

MAHB has already spent RM22 million increasing LTSAAS’s capacity from 1.5 million to 3 million passengers annually. Should more funds be invested when MAG’s long-term strategy is clearly to consolidate operations at KLIA?

KLIA Always Gets Priority

The KLIA Master Plan, launched in 2020, outlines phased upgrades to Terminal 1 and Terminal 2, plus a new Terminal 3 and a fourth runway.
This inevitably impacts LTSAAS’s airspace and expansion prospects.

Analysts have repeatedly warned that Malaysia’s aviation sector suffers from overcapacity and price sensitivity, with yields from LTSAAS routes significantly below those from KLIA.

Was the 2023 decision to reintroduce single-aisle jet services at LTSAAS truly a calculated, data-driven move, or a politically expedient one?

Where Is the National Airport Policy?

MAHB cannot plan in isolation. A competitive, efficient aviation industry requires all stakeholders, airlines, tourism boards, logistics operators, and regulators, to work from a common national blueprint.

That blueprint does not exist.

In 2021, the MoT announced a National Airports Strategic Plan (NASP) to chart long-term airport development, expected by mid-2023. It never materialised.
Last year, the current minister admitted there were no immediate plans for a national airport or seaport policy, a position I strongly criticised in my 1 January 2025 article, “Malaysia Needs a Comprehensive Policy for Airports and Seaports Development”.

This policy vacuum is a red flag for economic resilience.

Stability and Strategic Continuity

The current MAHB chairman (Dr Nungsari) once said the company needs “stability” that outlasts political cycles. Yet frequent leadership changes at MAHB and its board, including disagreements among shareholders, have disrupted decision-making.

Given that both the Ministry of Finance and MoT are represented on the boards of MAHB and MAG, there is no excuse for misalignment or lack of strategic direction.

If Malaysia is serious about achieving its MADANI Economy goal of ranking among the top 30 global economies, it needs stable governance and long-term strategic continuity.

Rethinking Priorities

The government should focus on maximising the efficiency of existing assets before pursuing costly megaprojects.
For example, the high-speed rail project, while politically attractive, is neither urgent nor financially viable at present.

Instead, the priority should be integrating airports, rail, roads, and logistics into a cohesive transport ecosystem that supports sustainable economic growth.

The Role of MAHB’s New Partner

MAHB’s new shareholder, with past experience running London City Airport, could bring valuable expertise in managing a city-centric airport with operational constraints.

But operational reliability remains a challenge. The recent disruptions to KLIA’s aerotrain service were disappointing and underline the need for basic service excellence alongside grand expansion plans.

Planning or Drifting?

Malaysia’s transport and aviation strategies cannot be driven by ad hoc decisions and shifting political winds.
We need a transparent, inclusive, and coordinated plan that aligns aviation with the broader transport network and the nation’s economic ambitions.

Benjamin Franklin’s warning remains as relevant as ever:
“If you fail to plan, you are planning to fail.”

The question now is whether Malaysia will chart its own flight path to competitiveness, or let turbulence dictate its course.

What say you?