Like all budget carriers, AirAsia wants to pare costs, which is why it refuses to berth its planes at KLIA's expensive glass-and-steel terminal.

ECONOMIST: Malaysia's airport controversy

Opponents of the project argued that a rival airport could be the kiss of death for KLIA, which opened in 1998, caters for around 25m passengers a year and aspires to be a regional hub.

ECONOMIST: Malaysia's airport controversy

Tony Fernandes, the bullish chief executive, says that his dream of a new airport was born out of frustration with Malaysia Airports, KLIA's operator, which is controlled by Khazanah Nasional, the government's investment fund, as is Malaysia Airlines, the national flag-carrier.

ECONOMIST: Malaysia's airport controversy