Bursa Community
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Just as it starts to soar, Firefly gets its wings clipped

Go down

Just as it starts to soar, Firefly gets its wings clipped Empty Just as it starts to soar, Firefly gets its wings clipped

Post by hlk Wed 17 Aug 2011, 18:09

AS THE dust settles over the share swap between Malaysia Airlines and AirAsia, not much emphasis has been given to community airline Firefly, which was started by MAS in 2007.

From analysts' reports, it can be gleaned that Firefly, which started out as a turboprop operator and later added jets, is set to return to basics. It will focus on the turboprop planes and operate out of Sultan Abdul Aziz Shah Airport in Subang.

Firefly's resources - such as existing jets and those on order - will be channelled into starting a new full-service regional airline known as "Sapphire".

The question which begs an answer is: Why are the jet operations, which have just taken off, ending up as a pawn, following the share swap between major shareholders of AirAsia and MAS?

When MAS allowed Firefly to take over some of the jet operations and fly out of the Kuala Lumpur International Airport (KLIA) earlier this year, it was meant to take on regional competitors like Silk Air, Jetstar Airways, Nok Air and AirAsia.

Several domestic routes which were bleeding MAS previously were taken over by Firefly and it appeared that MAS was winning the game against AirAsia with these routes.

Firefly is a brand which has won multiple awards, its turboprop operations have been making money and the airline was set to rake in good money in about a year after its jet services began.

To step in now and tinker with the operations of an airline that was operating more efficiently than AirAsia boggles the minds of many, especially the flying public, who will no longer have the option of travelling on a Firefly jet at competitive fares and will have to contend with AirAsia.

Also to consider are the various airports which Firefly has started flying to, such as Kota Kinabalu which is likely to end up with six fewer flights daily, and Kuching, having to contend with eight fewer flights.

Firefly now operates 10 ATR 72-500 turboprop aircraft and is set to take delivery of two more planes soon, bringing its fleet to 12. It has options for three more aircraft for possible delivery in 2012.

For its jet operations, Firefly operates six Boeing B737-800s (five of which are based at KLIA and one in Kota Kinabalu), while two B737-400s are based in Johor Baru.

Firefly is scheduled to take delivery of its seventh B737-800 in November.

The fact that the community airline is looking at more aircraft and will stick to the 20 orders is positive news and is likely to ensure continued profitability of the turboprop operations.

What remains a shame and a total waste, however, is the fact that something which has and continues to show promise and could have resulted in placing MAS ahead of the curve, is now being allowed to be axed, in the name of added synergies and a supposed boost to the aviation sector.

hlk
hlk
Moderator
Moderator

Posts : 19013 Credits : 45112 Reputation : 1120
Join date : 2009-11-14
Location : Malaysia

Back to top Go down

Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum