Letters

Low-cost carrier should target long-term growth

LETTERS: It is heartening news for travellers out of Penang that Firefly will relaunch its low-cost carrier (LCC) jet operations out of the northern city using Penang International Airport (PIA) as its base, on April 11.

With an initial fleet of four 737-800s from the parent company, Malaysia Airlines Berhad (MAB), Firefly will offer flights to Johor Baru, Kuching, and Kota Kinabalu as part of its start-up operations.

There are plans to gradually expand the fleet to 10 aircraft with the expansion of its network to include regional destinations covering four to five hours flying time as market conditions gain momentum.

After a few deferments to its start-up due to uncertain market conditions and reopening of domestic borders, the relaunch is an indication of light down the tunnel.

Majority stakeholder, Khazanah Nasional Berhad's plan to re-introduce Firefly jet operations is seen as part of the Malaysia Aviation Group restructuring exercise.

Re-introducing jet flights after suspending operations on December 4, 2011, is seen as a long over-due decision but it is certainly a welcome move.

It will be a challenge for Firefly to penetrate the low fare segment of the market after a lapse of more than 10 years as it could expect competition from AirAsia which may boost its northern hub

What Firefly could offer would depend on market conditions. There were initial plans for passengers to enjoy complimentary 20kg checked luggage and a hot meal.

With the price of oil spiking, it could be an expensive gesture for the airline to continue to extend if the uptrend of the price continues. The writing is on the wall that flying will never be the same again. The frills will have to be cut or reduced.

Currently, LCCs are looking at every possible avenue of increasing ancillary revenue. This is not expected to change in the future or even when the market recovers.

As travel gains momentum, based on the availability of aircraft in the leasing market Firefly should also look at setting up hubs at the Kuala Lumpur International Airport, Senai International Airport, and Kota Kinabalu International Airport.

Firefly started operations on April 3, 2007, as a boutique airline with two Fokker 50 turboprops using PIA as its hub, an initiative of the then managing director of Malaysian Airlines System, Datuk Seri Idris Jala.

It was a timely move. The inaugural flight was on the Penang-Kota Baru route. The airline has expanded, currently with a fleet of 12 ATR72-500 turboprops serving major domestic points in Peninsular Malaysia.

WILLIAM DENNIS

Subang Jaya, Selangor


The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times

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