Firefly to launch new route from Kota Bharu to Singapore

SINGAPORE : Firefly - Malaysia Airlines' profitable short-haul budget airline - is spreading its wings.

This weekend, it will launch a new route from Kota Bharu to Singapore, and relaunch its Penang to Koh Samui, Thailand route.

Firefly said it aims to grow revenue from Singapore-based services by up to a fifth this year.

It is planning tie-ups with partners like Club Med in Kuantan to attract foreign tourists.

And it wants more Singaporeans to visit destinations where it flies to, such as Subang, Ipoh, Kuala Terengganu and Kuantan.

But from September 25, customers may have to pay more for passenger-service charges when Firefly moves from Singapore's Budget Terminal to Terminal 2.

It warns customers may also have to pay for higher fuel surcharges in the long run if fuel prices remain high because of the ongoing crisis in Syria.

Firefly plans to try to acquire two more aircraft within the next two years, to add to its current fleet of 12.

Ignatius Ong, CEO of Firefly, Malaysia, said: "I am looking at the Singapore market...We are doing four flights a week now. Seeing how things go, if demand is there, and we can stimulate it further, we will probably move it to daily."

Operating from the city air terminal in Subang and its northern hub in Penang, Firefly flies to nearly 20 destinations within Malaysia, Thailand, Indonesia and Singapore.

But while Firefly is profitable, it could be weighed down by its cash-strapped parent Malaysia Airlines.

The carrier recently announced it will delay its target to return to profitability by another year, to 2014. It reported its fifth consecutive loss of US$54.3 million for the March quarter.

In contrast, rival Air Asia posted a 4 per cent increase in first-quarter net profit to US$53.8 million and record revenue of over US$370 million. Air Asia also opened its regional headquarters in Jakarta in August.

Malaysia Airlines, on the other hand, has scrapped its plans for a new regional premium airline, which was to fly to major ASEAN cities and to venture into India and China.

- CNA/ms

SOURCE: Channel NewsAsia | 11 August 2012 |