MALAYSIA. Malaysia Airports yesterday unveiled the newly completed Satellite Retail Optimisation Project (SROP) at Kuala Lumpur International Airport (KLIA), ending 2009 on a high note.
KLIA’s Satellite Building, which houses international flights, has been given a major facelift and now features a more dynamic selection of retail and food & beverage brands.
Malaysia Airports embarked on the SROP in May 2008 to not only create more retail space and update its physical appearance, but to enhance the ambience and overall experience for passengers.
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Malaysia Airports Chairman Tan Sri Datuk Dr Aris Othman giving the welcome speech at the official launch event, as an enthusiastic performance by a local percussion group provides some impressive vitality to the celebrations | |
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(From left to right) Malaysia Airports Senior General Manager Commercial Services Puan Faizah Khairuddin, Malaysia Airports Chairman Tan Sri Datuk Dr Aris Othman, and Eraman Malaysia CEO Umar Bustamam – in atypical fashion – officially launching the completed Satellite Retail Optimisation Program with four solid beats of the drums |
Speaking at the official launch event, Malaysia Airports Chairman Tan Sri Datuk Dr Aris Othman stated: “Our mission through the SROP and all the supporting activities is to transform KLIA so that people will come to know KLIA as more than just an airport.
“In fact, we want travellers and the public at large to see KLIA like a shopping mall downtown, with the unique exception that we are the only mall that provides parking bays for aircraft.”
He added: “The need to be more creative and innovative in our approach is of paramount importance as we focus on putting the passengers first in everything that we do.
“The SROP enabled us to make changes to the physical appearance of the shops while adding more variety and brands as well as more choices for our passengers. The layout of the retail space has also been changed to make it easier for them to shop and move from one outlet to another. We have also incorporated other features to make the experience at KLIA uniquely its own.”
One of these features is a “˜Jungle Boardwalk’ which provides access to the airport’s natural heritage: A walkway was erected through the forest reserve at the centre core of the Satellite Building, while a Circular Viewing Gallery was built at the Mezzanine Level.
“Staying true to our concept of KLIA being the “˜Airport in the Forest, Forest in the Airport’, we had in mind the vision to share a piece of Mother Nature’s tropical heritage with our passengers through the refreshing experience of walking through our natural forest reserve,” Dr Othman enthused.
“This forest reserve has been here since before the Satellite Building was built. Besides functioning as a recreational walk path, the Jungle Boardwalk also makes it more convenient for passengers to access shops within the Satellite Building by walking through the jungle via the Boardwalk.”
The Jungle Boardwalk is a reflection of KLIA’s green credentials: It claims to be the only airport in the world to be Green Globe Certified. It has achieved Green Globe certification five times now, Dr Othman added. “And we hope we will still achieve the prestigious status in the years to come and help preserve the natural environment within the airport surroundings.”
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Members of the media are invited into the “˜Jungle Boardwalk’ – the first ever walkthrough of KLIA’s forest reserve | |
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Malaysia Airports Senior General Manager Commercial Services Puan Faizah Khairuddin, Mrs Othman, Malaysia Airports Chairman Tan Sri Datuk Dr Aris Othman and Eraman CEO Umar Bustamam enjoying the close contact with Mother Nature |
Retail outlets at the Satellite Building have been reorganised on the Passenger Level, where passengers access the aerotrain to get to and from KLIA’s Main Terminal Building.
This level houses shops ranging from international brand names such as Hermès, Salvatore Ferragamo and Versace; and souvenir and gift outlets such as Royal Selangor; to daily necessities and toiletries.
Three of KLIA’s major duty free players – DR Group, Dimensi Eksklusif and Eraman – offer confectionery products and perfumes & cosmetics (with Eraman also selling liquor and tobacco). Three cafes are available on this level for passengers seeking a quick bite or drink.
The Mezzanine Level, just above the Passenger Level, houses mostly food & beverage outlets. It features a wide selection of cuisine, from local fare and fast food to casual dining. The idea was to draw passengers – and their hunger pangs – to the Mezzanine Level, which was a “˜low-density’ area in KLIA, said Malaysia Airports Senior General Manager Commercial Services Puan Faizah Khairuddin.
The SROP cost an estimated RM$50 million (US$14.6 million), which Malaysia Airports expects to recoup within two years. The number of shops was increased from 60 to more than 70, which Khairuddin hopes will drive an increase in the average retail spend per passenger.
Othman added: “We want to encourage passengers to shop and dine more at our airports. In order to achieve this, we must ensure that they have a positive and distinctive experience at every occasion of their interaction with us. And this includes added variety, more accessibility and convenience.”
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The “˜Take Off. Touch Down. Shop’ campaign is organised by Malaysia Airports to communicate the message that airport shopping offers good value for money; The Satellite Retail Optimisation Project reorganised the overall layout at KLIA’s Satellite Building, placing food & beverage outlets on the Mezzanine Level and shops at the Passenger Level | |
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The Passenger Level houses boutiques from international brand names such as Salvatore Ferragamo and Mango |
To coincide with the launch of the SROP, Malaysia Airports is also introducing the “˜Take Off. Touch Down. Shop.’ campaign to promote a favourable shopping experience at KLIA. It aims to communicate the message that shopping at airports offers good value for money.
Through its Commercial Services Division, Malaysia Airports is also extending this new shopping campaign to Kota Kinabalu International Airport, Kuching International Airport and Penang International Airport.
The campaign will be executed in phases, spanning nine months from 17 December. Phase 1 of the campaign focuses on the array of duty free and duty lifted offerings at the above five airports.
“Like any other business, we need to ensure customer satisfaction, and this includes offering the best customer experience at our airports. We are working towards having passengers view KLIA as not just a means of getting to their destination but as being part of their destination,” said Dr Othman.
An extended report on the official launch will be featured next week – and in the next issue of The Moodie Report Print Edition, out in January.
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The SROP cost RM$50 million (US$14.6 million), which Malaysia Airports expects to recoup within two years |
Malaysia Airports 3Q 2009 financial report
Malaysia Airports last month reported revenues of RM377.4 million (US$110 million) for the third quarter ended 30 September 2009, +3.5% higher than RM364.5 million reported for the same period last year.
The third quarter increase was attributed to the growth in airport operations arising from a +20% growth in total passenger movements. However, the passenger growth was mainly from the newly expanded Low Cost Carrier Terminal (LCCT) where passenger service charges are lower compared to the main terminal, resulting in a lower than expected revenue.
Profit before tax was recorded at RM111.2 million (US$32.4 million) against RM134.2 million in the same quarter last year – a decline of -17.1%.
For the year to date performance, Malaysia Airports achieved a much higher +7.4% growth in revenue, recording RM1.160 billion (US$0.34 billion) this year against RM1.080 billion last year. Profit before tax for the year to date was RM322.1 million (US$93.7 million), a decline of -1.5% from last year’s RM326.9 million.
Malaysia Airports Managing Director Tan Sri Bashir Ahmad commented: “This is a very challenging year for us. Although overall passenger movements have grown, we continue to depend on increasing revenue from our commercial activities. Therefore, our Retail Optimisation Program (ROP) was crucial to ensure our overall revenue growth is sustained.
“Our efforts on ROP at the LCCT and KLIA Main Terminal have contributed to a double-digit growth increase in our commercial revenue, comprising of rental, advertising, retail, food and beverage activities.
“The expansion of the LCCT from ten million passengers per annum to 15 million passengers per annum was completed in March this year and the ROP at the Satellite building and Contact Pier is now fully completed. Therefore, we will definitely see a much higher contribution from our retail and rental business from here onwards.”
Bashir concluded: “We remain optimistic that the Group’s Headline Key Performance Indicators (KPIs) will be achieved. In addition, our airline customers are excited with the launch of the Airline Recovery Program which we trust will assist the airlines to deliver further growth in passenger volume in the future. Finally, with our improving financial position, we are able to continue and maybe even enhance our dividend payouts as well.”
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