EXPANSION: Strategic partnership with Southeast Asian airline will complement its turboprop ops
MALAYSIAN Airline System Bhd’s wholly-owned subsidiary, Firefly, is set to enter into a strategic partnership with a Southeast Asian airline this year to expand its network and increase profitability.
FlyFirefly Sdn Bhd chief executive officer Ignatius Ong yesterday did not name the regional airline, but said the potential partner operates jets and would complement Firefly’s turbo-propeller operations.
“It is not a code-sharing agreement but one which will bring more traffic into Malaysia and help us grow as an airline with added revenues as we continue to suppport our parent company Malaysia Airlines (MAS),” he told Business Times here.
Firefly was launched seven years ago in Penang as a full-service community airline and began operations with F-50 planes. Today, it boasts a fleet of 14 ATR72-500 and ATR72-600 planes and counts Subang and Penang as its primary hubs, while Johor Bahru and Kota Bharu serve as secondary hubs.
Ong said the proposed strategic partnership agreement would see Firefly and its partner airline cross-sell each other’s routes and enable Firefly passengers to purchase tickets to destinations not served by the airline.
“Apart from organic growth, our role is to grow smart partnerships with people, and this will be our first foray with a foreign partner,” he said, adding that Firefly will continue to serve as an airline “made by Malaysia for Malaysians”, with safety being its utmost priority.
Other plans for growth include entering secondary airports in Indonesia, such as Palembang and Padang, to tap into medical tourism and serving more Thai airports like Krabi and Hua Hin.
“Indochina airports are also being viewed for potential growth.”Ong did not divulge Firefly’s contribution to MAS’ group revenue except to say it was “less than 10 per cent”.
On how the airline would help MAS get back on its feet, Ong said: “We will continue to work with the MAS network on aligning frequencies. This will be done by adding our own frequencies and timing to suit the various market segments. This will enable MAS to free up its aircraft forother lucrative destinations.”
Ong also said Firefly will continue to serve as a template on how MAS can run profitably by maximising its existing assets and having a lean work culture.
“All this can be done, as proven by Firefly, without compromising on Malaysian hospitality, security and customers’ comfort,” he added. On increasing Firefly’s ancillary revenue, Ong said it is looking at more novel sources, such as working with convenience store operator Circle K, to sell their products to passengers before they board the aircraft at the Subang Skypark Terminal.
“We have also started talking to the various state tourism authorities about forming strategic partnerships. Some states have been very supportive of our marketing efforts,” he said.
Source: New Straits Times | Business | 2 April 2014
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