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Malaysia's Firefly to start jet operations
October 16th 2020
Malaysia Airlines Group (MAG) said this week its regional unit, Firefly, would commence jet operations from Penang International Airport in the first quarter of 2021. Read More »
Firefly said it would phase in about 10 narrow-body aircraft to its fleet for domestic flights within Malaysia, including between Peninsular Malaysia and East Malaysia, as well as international services to ASEAN and Asia-Pacific destinations such as Indonesia, Singapore and Thailand from secondary cities in Malaysia.
The airline will concentrate on the leisure market, MAG said, giving flag carrier, Malaysia Airlines Berhad (MAB), "room to focus on its network serving the premium market".
“The world has evolved so much since COVID-19, and as airlines we must embrace those changes and adapt to the market needs and wants," Firefly CEO, Philip See, said in the statement.
"Firefly is ready to carry out that challenge, as we see strong potential in this dual hub strategy, while maintaining our turbo propeller service out of Subang Skypark, serving the mix of corporate and leisure travellers.”
Firefly has an all-turboprop fleet of ATR72-500s with hubs at Kuala Lumpur's Subang airport and Penang International Airport. Its route network covers eight destinations in Peninsular Malaysia, Banda Aceh, Phuket and Singapore.
MAG said the addition of jet services to Firefly’s operations out of Penang represented an increase in available seat kilometres of 36% in the next five years.
No aircraft choice for the jet fleet was mentioned in the statement, MAG said there was the possibility of deploying 737-800s from MAB to Firefly.
Established in 2007, the regional carrier did fly 737s briefly in 2011.
MAG group CEO, Captain Izham Ismail, said the initiative was in line with the airline group's updated long-term business plan, which was "realigned to suit the current and future environment post COVID-19, with a focus on strengthening the revenue streams of each subsidiary".
“Based on available forecasts, domestic and short haul travel will be most preferred in the current environment, so it makes commercial sense for Firefly to supply this demand, but from the northern region," Captain Ismail said.
The announcement Firefly would return to jet operations came amid ongoing speculation about the future of MAB, which has been seeking to renegotiate agreements with lessors and secure additional funding to turn around its financial performance.
While those financial difficulties pre-date the coronavirus crisis – MAB was loss-making before COVID-19 – the crippling impact of the pandemic has put more pressure on the airline and raised questions around its survival.
Captain Ismail told Malaysia's The Edge Weekly last week the airline would have no choice other than to shut down should lessors reject a restructuring plan.
The Malaysian government has ruled out chipping in additional funds to support the airline group and the airline's sole shareholder, Khazanah Nasional, was reported to be considering its options.
One scenario, dubbed “Plan B” in media reports, was for Khazanah to turn Firefly into the national carrier should Malaysia Airlines be shut down.
