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KUALA LUMPUR (Reuters): Firefly Airlines will begin flying jets in the first quarter of next year, its parent Malaysia Aviation Group (MAG) said on Thursday (October 15), in a sign that MAG is shifting its focus as Malaysia Airlines flagship brand struggles to survive.
MAG, which is trying to negotiate deep discounts from lessors to keep national carrier Malaysia Airlines afloat, said Firefly would add up to 10 narrow-body jets to its fleet in phases, serving the domestic, Asean and Asia Pacific markets from the Penang International Airport.
Firefly currently flies turboprop aircraft from Subang Skypark.
“Firefly will complement its sister company, Malaysia Airlines (MAB), in serving the leisure market while diversifying its base connecting secondary cities in Malaysia with East Malaysia, Thailand, Indonesia and Singapore,” MAG said.
It will leverage the resources and talents available in the group, with the possibility of deploying MAB Boeing 737-800 aircraft, allowing MAB to focus on the premium market.
The installation of Firefly’s jet operations in central Penang will require minimal investment from MAG next year, with an expected increase in capacity, measured as average seat per kilometer, of 36% over the next five years, MAG said.
Reuters reported last week that MAG had warned the leasing companies that MAB’s shareholder, the owner of the state fund Khazanah Nasional, would liquidate the airline if restructuring talks with the lessors failed.
Under a “Plan B”, Khazanah would inject funds into Firefly to start new aircraft operations, focusing first on domestic services. Firefly would get narrow-body jets and later wide-body jets from the market, Reuters reported.
MAG Executive Director Captain Izham Ismail said the plan for Firefly was in line with a group-wide business strategy that has been realigned to fit the current and future environment after the Covid-19 pandemic.
“Based on available forecasts, domestic and short-haul travel will be the most preferred in today’s environment, so it makes business sense for Firefly to meet this demand, but from the northern region,” he said.
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