Senai Ropes in Boston Firm to Compete with Changi

January 7, 2004

Senai Ropes in Boston Firm to Compete with Changi 
Business Times Singapore

 
SENAI Airport in Johor has roped in Boston-based software and food service firm 
CrunchTime to help set up a duty-free zone and world-class shopping facilities.

This is the fast-growing airport's bid to catch up with Changi Airport, which 
is being revitalised to face the keener competition.

Senai Airport Terminal Services (Seats), which is controlled by port tycoon 
Syed Mokhtar Al-Bukhary, said yesterday that new passenger conveniences worth 
RM40 million (S$17.9 million) are being planned for the airport.

The proposed facilities at Senai include branded retail outlets for duty-free 
and non-duty free merchandise, multiple food and beverage outlets, and 
international-class shopping facilities.

'The move is part of an overall upgrade of Peninsular Malaysia's southern-most 
aviation facility to bring it up to par with other international airports in 
the region,' Seats said.

Seats is finalising its joint venture with CrunchTime to form Senai Sky 
Services. Seats will hold 60 per cent of the venture, with the remainder to be 
held by CrunchTime.

According to its website, CrunchTime's clients include cruise liners such as 
Carnival, Royal Caribbean, P&O Cruises and the luxurious The Yachts of Seabourn.




  
'We plan to bring in recognisable brand outlets to the airport and provide air 
travellers a wide range of food, beverage and shopping options,' said Seats 
director Mohd Sidik Shaik Osman.

Competition with Singapore is nothing new to Syed Mokhtar. His Port of Tanjung 
Pelepas in Johor has snatched the two biggest shipping clients - Maersk Sealand 
and Evergreen Marine - from Singapore port operator PSA Corporation in the last 
three years.

He also has grand ideas for Senai. Seats plans to expand capacity to cater to 
seven million passengers and handle one million tonnes of freight in 10 years.

In contrast, Changi handled almost 25 million passengers last year and has an 
airfreight capacity of 2.5 million tonnes.

While Senai is a latecomer in its bid to become a regional airport and transit 
point, it is fast becoming a hub for no-frills travellers.

AirAsia has made Senai its second hub to woo passengers in Singapore.

The threat to Singapore's long-standing status as an air and sea hub has not 
gone unnoticed.

Earlier this week, Senior Minister Lee Kuan Yew warned that Singapore will be 
'diminished' if it loses its airhub status and the government will not let this 
happen. Citing PSA's experience, he said Singapore Airlines and Changi Airport 
needed to cut costs by 10 to 15 per cent to stay ahead of the game.

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