- CAPA Analysis
- Schedule Analysis
- Route Maps
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- FlyFirefly Sdn Bhd,
3rd Floor, Admin Building 1,
Complex A, Sultan Abdul Aziz Shah Airport,
- Main hub
- Kuala Lumpur International Airport
- Business model
- Domestic | International
- Codeshare Partners
- Malaysia Airlines
A wholly-owned subsidiary of Malaysia Airlines, Firefly is a full-service Malaysian regional airline. From its bases at Subang and Penang airports, the carrier operates scheduled services to destinations in Malaysia, Thailand, Indonesia and Singapore.
Location of Firefly main hub (Kuala Lumpur International Airport)
274 total articles
13 total articles
Lion Air Group affiliate Malindo launched services on 22-Mar-2013 with seven daily flights spread across Malaysia’s two largest domestic routes – Kuala Lumpur to Kota Kinabalu and Kuching. With its hybrid business model and low fares, Malindo will impact both AirAsia and Malaysia Airlines (MAS), which were previously the only two carriers on domestic trunk routes within Malaysia.
Malindo is planning rapid domestic and international expansion, leveraging Lion’s huge order book for 737s. India is poised to become Malindo’s first international destination with service to Delhi starting in Jun-2013, exploiting a market which is under-served due to cuts last year at AirAsia X. Several planned destinations in India and China will allow Malindo to increase aircraft utilisation and tap into the lucrative Malaysia-India and Malaysia-China markets. It also seeks to tap the fast-growing Indonesia-India and Indonesia-China markets, which Malindo will serve by offering connections to Lion.
Malaysia Airlines (MAS) faces a challenging 2013 as low-cost carrier competition intensifies in the Southeast Asian market. The new oneworld member is back in the black, having posted profits for 3Q2012 and 4Q2012. But MAS remained in the red for the full year and will struggle to meet its goal of returning to full year profitability in 2013.
MAS operates in a highly competitive home market, competing against AirAsia on a majority of its routes. Competition will intensify after new Lion Air Group affiliate Malindo launches services in late Mar-2013, becoming the second LCC in the Malaysian market. Meanwhile challenges remain on long-haul routes, where MAS one year ago reduced capacity significantly as part of a new business plan, due to rising fuel prices and unfavourable global economic conditions.
The landmark agreement unveiled by Malaysia and Singapore on 19-Feb-2013 to build a high speed rail (HSR) connecting Kuala Lumpur with Singapore could result in a huge drop off in air traffic between the two cities if the new HSR link opens as planned in 2020. The new rail line could also change the dynamics of competition between Singapore Changi and Kuala Lumpur International, particularly if the line includes stops at either or both airports. The construction of HSR in Malaysia could also alter the country’s domestic market should the line be extended to include other Malaysian cities.
Singapore and Kuala Lumpur are only about 350km apart and are already connected by highway. But the lack of an HSR option and the opening of the route to budget carriers in 2008 had led to a huge increase in flights between the two cities, making Singapore Changi-Kuala Lumpur International Airport (KLIA) the third largest international route in the world.
New oneworld member Malaysia Airlines seeks to finally turn the corner in 2013 but challenges remain
Malaysia Airlines (MAS) is starting to show some signs of progress in its latest turnaround effort, after a year of restructuring and almost constant adjustments to its new business plan. The carrier’s management team is confident the flag carrier will finally turn the corner in 2013 and that its upcoming entrance into oneworld particularly boosts its outlook. But MAS still faces several challenges and there is always a risk of Malaysian politics quickly erasing the positive aspects of the recent restructuring.
MAS should not be banking on oneworld, which it will formally enter on 01-Feb-2013, being its panacea. Only three oneworld carriers serve Kuala Lumpur and relations with MAS’ sponsor, Australia’s Qantas, cooled significantly earlier this year after talks over establishing a new joint venture carrier ended.
Project Orca, which envisioned Qantas and MAS joining forces to establish a new Malaysia-based A330 operator on routes within Asia-Pacific including Australia, was a logical solution for both carriers’ international woes. But MAS strongly disapproved of the commercial terms proposed by Qantas and now that Qantas has got into bed with Emirates it faces the prospect of the carrier which brought it into oneword emerging as a bigger competitor rather than key partner.
The AirAsia Group has followed through on promises to order another 100 A320s, enabling it to accelerate expansion at its fast-growing portfolio of low-cost carriers. The new order, announced on 13-Dec-2012, means the group is now committed to more than 350 A320/A320neo deliveries over the next 14 years. While adding aircraft at an average pace of 25 aircraft per year may seem ambitious, the reality is that even faster expansion is potentially sustainable given the fact that AirAsia now comprises of five A320 airlines in five distinct markets, all of which are rapidly growing. Indeed, the real issue is more about keeping ahead of the field in Asia's booming short-haul low-cost market.
Indonesia's Lion Air Group, which has quietly overtaken AirAsia as the largest LCC group within Southeast Asia (albeit mostly domestic), captured headlines in late 2011 when it one-upped AirAsia’s order for 200 A320neos from mid-2011 by committing to 201 737 MAXs.
AirAsia is taking the threat of increased competition with Lion, which is planning to launch a new affiliate in AirAsia’s home market of Malaysia in 2013, very seriously. It’s no surprise AirAsia is using the latest order in part to accelerate expansion in Malaysia, where it will aim to beat new Lion subsidiary Malindo into oblivion, and in Lion’s home market of Indonesia.
Malaysian low-cost carrier AirAsia has reported another highly profitable quarter, including the highest operating margin among publicly traded Asian airlines (both LCCs and full service carriers) while restructuring flag carrier Malaysia Airlines (MAS) remains one of Asia’s most unprofitable carriers. The outlook for AirAsia Malaysia is bright, particularly if MAS fails to adjust its strategy following the unbundling earlier this month of the equity swap with AirAsia. The MAS outlook remains bleak as the group continues to push on with its new business plan, which focuses entirely on the challenging premium market just as nearly every other major airline group in Asia is investing significantly in the budget sector.
AirAsia Malaysia is the only publicly traded LCC in Southeast Asia to record an improvement in profitability for 1Q2012. The carrier reported a pre-tax net profit of MYR212 million (USD67 million), an improvement of 5%, while its after tax net profit improved by less than 1% to MYR172 million (USD54 million). Revenues at AirAsia Malaysia increased by 11% to MYR1.17 billion (USD371 million) as passenger traffic and seat capacity both increased by 12% to 4.8 million and 6.1 million, respectively.
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