KLIA2 Case Study

KLIA2 (Kuala Lumpur International Airport 2) is a new terminal for low-cost carriers which was built to replace the then existing LCCT (KLIA Low-Cost Carrier Terminal) which has been operating since 23 March 2006. The KLIA2 project was delayed for three years, with the costs of building the terminal increasing from RM2billion to RM4billion. KLIA2 was finally scheduled to start operations on 2 May 2014. However, one month prior to the opening of KLIA2, Malaysia Airports Holdings Berhad (MAHB) made a statement to the press that blamed AirAsia for wishing to further delay its opening due to security and safety issues. MAHB later made another press statement saying that they have complied with all the requests of AirAsia in regards to building
For example, AirAsia Chief Executive Officer Aireen Omar defended the company’s corporate image regarding the KLIA2 delay by saying "From the published articles, it might be perceived that AirAsia is deliberately not moving to KLIA2 or being difficult on purpose, but I can assure you that is not our intention" (Murad, 2014). In another case of crisis communication, AirAsia’s in-flight magazine Travel3Sixty published an article in their April issue which was considered insensitive in relation to the MAS crisis of the missing aircraft MH370. However, it was resolved quickly by AirAsia whereby they justified their actions, made a public apology and immediately removed the month’s issue after receiving negative public feedback. This shows that AirAsia’s Public Relations prioritizes the opinions and concerns of their customers and the public community. In addition, they reacted in favor of the community by removing the April issue immediately so that their positive corporate image is protected in the eyes of the public
By requesting for a delay to move into KLIA2 due to safety issues, AirAsia enhances its positive corporate image as an ethical company that prioritizes safety, not only of their employees but their customers as well. By refusing to move in before KLIA2 produces a certificate of completion and compliance (CCC) and moving in after the LCCT was ordered to close down, this shows that AirAsia is very strict in terms of abiding to the laws and policies of the government and this also adds on to their positive corporate image. However, due to bad government relations, MAHB made a sudden statement to the media stating that MAHB has complied with all of AirAsia’s requests for KLIA2 except for a spa and a museum. This statement was highly unfavorable and damaging to AirAsia’s corporate image as it made the request for delay by AirAsia appear to be due to unfulfilled private interests and not solely for the welfare of the community (safety and security issues). To make matters worse, the Parliament Accounts Committee (PAC) chairman also made a provocative statement that supported the suspected hidden agenda by AirAsia, stating that the company posed a lot of questions on MAHB which made it appear as if AirAsia had a significant influence on the project as KLIA2 was