This article first appeared in The Edge Malaysia Weekly on August 25, 2025 - August 31, 2025

AVIATION experts have given the thumbs up to renewed efforts to establish airside connectivity between the two terminals at Kuala Lumpur International Airport (KLIA), but say the plan may remain on paper unless the government commits to endorsing it.

Under the proposed initiative, arriving passengers at Terminal 2 of KLIA (KLIA T2) could transfer to flights at Terminal 1 (KLIA T1), or vice versa, via coach services — bypassing the need to clear security screening again. This would significantly streamline flight connections and improve passenger experience.

The push follows recent remarks by Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Mohd Izani Ghani, who said the airport operator is working with the Ministry of Transport (MoT) to assess airside transfers between KLIA’s two terminals.

“A proof of concept (PoC) is underway to explore seamless inter-terminal passenger and baggage transfers on the airside,” Mohd Izani said at a media briefing last month, outlining MAHB’s strategic direction following its privatisation.

He noted that limited aircraft parking capacity at KLIA T1 is pushing airlines to operate from KLIA T2, which has excess capacity. An interlining solution, including inter-­terminal transfer, would help balance traffic between the terminals.

KLIA T1 handled 30.7 million passengers in 2024, up 29.6% from 23.7 million the year before, surpassing its optimised capacity of 30 million passengers per year. KLIA T2 saw 26.4 million passengers, a 12.1% increase from 23.6 million in 2023, but well below its design capacity of 45 million passengers per year.

It is not for lack of effort from MAHB. Previous managing directors and CEOs had pushed for airside connectivity — seen as a more cost-effective alternative to building a second satellite terminal — with the last attempt made in 2019 under then group CEO Raja Azmi Raja Nazuddin. However, the initiative faced pushback from budget airline AirAsia Group, the largest tenant at KLIA T2, which urged the airport operator to prioritise more pressing passenger-experience issues at the terminal over terminal integration.

This time, MAHB appears more optimistic, backed by support from MoT and growing interest from airlines.

“There’s been a positive reaction from some airlines. But further discussions are needed,” Mohd Izani said.

Aviation experts say while the initiative is viable, key challenges remain, particularly in infrastructure integration and airline cooperation.

“There will be some capital expenditure involved, especially to integrate the differing baggage handling systems at KLIA T1 and T2,” one aviation expert tells The Edge.

“But it’s feasible. The biggest hurdle will be political will, especially aligning interests between Malaysia Airlines and AirAsia, given the potential business overlap,” the expert says, adding that airside transfers via buses and cars are workable, while landside solutions such as the Express Rail Link are less ideal.

Malaysia Aviation Group Bhd (MAG) says it fully supports the airside connectivity initiative, with group managing director Datuk Captain Izham Ismail calling it a major step forward for Malaysia Airlines, Firefly and Amal — the haj and umrah pilgrimage arm of Malaysia Airlines — as well as for other carriers operating at KLIA.

“It reduces transit times, enhances convenience and delivers a smoother travel experience. Strategically, it strengthens Malaysia’s position as a competitive aviation hub, promoting trade, tourism and economic growth,” he tells The Edge.

Izham adds that the proposal aligns with MAG’s hub-and-spoke model and premium carrier strategy, and opens opportunities to optimise flight schedules and expand connectivity.

“Looking ahead, MAG invites MAHB to continuously assess and strengthen airport infrastructure to ensure it remains future ready. With air travel demand projected to expand at a compound annual growth rate of approximately 6% over the next decade, proactive investment will be crucial to meet the expected surge in capacity over the next five years and beyond.”

He stresses that MAG remains committed to working closely with MAHB, MoT and partner airlines to ensure the initiative is implemented in line with global standards, with a strong focus on operational excellence and enhanced passenger experience at all airports in Malaysia.

Alan Lim, director at global aviation advisory firm Alton Aviation Consultancy based in Singapore, says MAHB’s renewed push makes sense, especially amid growing congestion at KLIA T1.

“First, it gives the airport operator greater flexibility in managing capacity during peak periods between the two terminals, which is critical as traffic continues to grow. In particular, it enables MAHB to better tap into the additional capacity available at KLIA T2, to allow for better capacity utilisation across both terminals, especially as KLIA T1 is getting increasingly congested. This follows a similar trend for hub airports around the world, which are facing capacity constraints and looking for different ways to maximise resource utilisation,” he notes.

Lim opines that seamless inter-terminal transfers could also boost KLIA’s status as one of the world’s most connected airports, particularly by enabling full-­service to low-cost carrier connections, a growing global trend.

“Ultimately, this should help to drive commercial upside for MAHB if it results in an increase in the number of flights operating across KLIA T1 and T2,” he adds.

Lim does not see any parties “losing” in this initiative. “Airlines benefit from capacity growth, and the airport operator gains without major infrastructure spending.”

Sobie Aviation independent analyst and consultant Brendan Sobie points out that evolving traffic patterns now place more strain on KLIA T1, forcing some airlines into KLIA T2 — making a stronger case for connectivity.

“It’s ultimately a cost-benefit question,” he says, noting that if KLIA T1 expands, the need for airside integration may diminish. But linking the terminals adds long-term flexibility, especially as Malaysia’s airline sector may consolidate in the future, he adds.