Airline sector said to be driving GDP

Avions de Transport Regional (ATR) regional CEO Filippo Bagnato(left) handing over the first of the 20 new ATR72-600 turbo prop aircraft to Firefly CEO, Ignatius Ong (right) in Toulouse on Wednesday. - Bernama

By Wong Wei-Shen

TOULOUSE: Premier short-haul airline operator Firefly Sdn Bhd sees the airline industry as a catalyst to continue driving Malaysia’s gross domestic product (GDP) growth, on the back of increasing domestic flight traffic in Asia.

“I see the airlines driving the GDP instead of the GDP growth driving the industry. Without us, the growth may not be as high,” chief executive officer (CEO) Ignatius Ong told reporters at a briefing.

Last year, Firefly recorded 1.7 million passengers.

Ong was in Toulouse to sign the first delivery of one of the 20 new ATR72-600 turbo-prop aircraft the airline had purchased from Avions de Transport Regional (ATR). 

“We have been looking forward to this day for quite some time now. We are thrilled to finally receive our new aircraft. Our exclusive ATR72 fleet has allowed us to develop a unique high frequency network out of Subang, Penang and Johor Bahru, which greatly benefits Firefly. 

“It has also benefited our Malaysian communities, the economy as well as the rest of the population in the Indonesia-Malaysia-Thailand Growth Triangle,” he said at the handover ceremony at the ATR headquarters on Wednesday. 

Ong highlighted that the new aircraft would replace the existing fleet of 12 ATR72-500s. “The new aircraft would reinforce existing routes such as Johor, as well as service new routes like Johor to Pekan Baru, Sumatra, which would begin on Aug 1, 2013,” he said. 

The first ATR72-600 plane’s inaugural flight to Johor has been scheduled for July 12, 2013.“The purchase of this new aircraft is part of our growth and expansion plan as well as our continuous effort to serve customers better. ATR aircraft are unrivalled in terms of passenger comfort and environmental friendliness. This would further improve guest experience,” he said.

Ong is also considering expanding the airline’s flight network to the Indochina region, into countries such as Vietnam and Cambodia.Ong said Firefly’s expansion plans depended on where the airline operator placed its hubs. 

The Malaysia Airlines (MAS) subsidiary is currently operating from two hubs, namely Subang and Penang. It is also in the midst of establishing hubs in Johor and Kota Bharu. New destinations would probably only be added from next year onwards, said Ong. 

Ong added that should the demand for Firefly flights increase in the next few years, Firefly may decide to continue using the ATR72-500 instead of replacing the whole ATR72-500 fleet with the ATR72-600 aircraft, which has the capacity to seat 72 passengers, to match the demand.

“We have the option of keeping the ATR72-500s,” he said. Meanwhile, Ong said he would jump at the opportunity if there were an option of buying a 90-seater aircraft from ATR. ATR CEO Filippo Bagnato said the aircraft manufacturer was currently checking the concept and configuration of establishing the 90-seater aircraft. 

“We have received a lot of demand for the 90-seater from South-East Asian and Latin American major operators,” Bagnato said.However, the anticipated launch of the 90-seater next year would be subject to demand of at least 100 orders of the aircraft, as well as the approval of ATR’s shareholders. 

Firefly expects to receive its second ATR72-600 by the end of the year, while the remaining 18 aircraft will be delivered in stages over the next six years.In December last year, MAS signed a RM3bil contract to purchase 36 new ATR aircraft for Firefly, including its sister company MASwings. Out of the total 36 aircraft, Firefly is taking 20 aircraft.

Ong aims to keep Firefly’s fleet young, ranging from an average age of three years to a maximum of six years, with the purpose of keeping aircraft maintenance low.

Source: The Star Online | 5 July 2013 |