It specifically entails cost reductions from normal airports in terms of: However these terminals may also have modern facilities such as free Wi-Fi, and be comfortably air conditioned.
A German study (Swanson 2007) of costs showed that at Malaysia's KLIA and Changi LCCTs, airlines were charged roughly 2/3 to 3/4 the total cost of landing at the main terminal; for budget-sensitive carriers, any savings advantage can be critical.
[4] Klia2 billed as the world's largest purpose-built terminal dedicated to low-cost carriers, is designed to cater for 45 million passengers a year with future capacity expansion capability.
Built at a cost of US$1.3 billion, klia2 started commercial operations on May 2, 2014, at the Kuala Lumpur International Airport in Malaysia.
While the concept of a simple basic terminal in theory would lower costs, in practice, it can be turned into a pork barrel project such as klia2.