- CAPA Analysis
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- 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
- Airline Group
- Part of Malaysia Airlines Berhad
- 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)
339 total articles
18 total articles
Malaysia Airlines (MAS) is cutting international seat capacity by about 18% in Aug-2015 as the ailing flag carrier restructures its network ahead of the 1-Sep-2015 transition to a new company. International ASKs are being reduced by about 23% as the medium and long haul networks have seen bigger reductions than operations within Asia with the new MAS seeking to leverage its strong regional position.
Australia accounts for about 30% the seats and about 40% of the ASKs being removed from the MAS international network in Aug-2015. Europe accounts for about 10% of the seats and 20% of the ASKs being removed in Aug-2015 but the cuts to Europe are much steeper when also factoring in the May-2015 suspension of services to Frankfurt.
In Sep-2015 MAS will for the first time have a fewer international ASKs than the AirAsia/AirAsia X groups. AirAsia’s short-haul Malaysian subsidiary will also overtake MAS as Malaysia’s largest international carrier on a seat basis. On a group level AirAsia already has more international seats in Malaysia and has been the domestic leader for several years.
Malaysia Airlines (MAS) is finally starting to implement a long overdue restructuring aimed at restoring profitability through capacity reductions, job cuts and efficiency improvements. A rebranding is also being considered as the flag carrier transitions to a new company and starts a new chapter.
MAS has been in need of a major overhaul for several years but its predicament became more dire in 2014 due to the MH370 and MH17 incidents, coupled with overcapacity in its home market. The Malaysian government was quick to respond by unveiling in Aug-2014 a restructuring initiative and a plan to buy out minority shareholders. MAS de-listed in late 2014 but has been extremely slow in implementing other changes, including job and capacity cuts.
With the arrival of its new CEO, Christoph Mueller, MAS is finally moving forward with job cuts ahead of the delayed transition to a new company, which is now slated to take over from the current ailing company on 1-Sep-2015. Capacity adjustments have started with the recent suspension of services to Frankfurt, Kochi, Krabi and Kunming.
Malaysia’s Malindo Air further expands domestic and Indonesia networks, pressuring Firefly & AirAsia
Malaysian hybrid carrier Malindo Air is doubling its Indonesian network during 4Q2014 with three new routes that leverage its relationship with 49% shareholder Lion Group. Malindo recently launched services to Medan - its fourth destination in Indonesia after Jakarta, Bali and Batam - and will add Pekanbaru in Nov-2014 followed by Bandung in Dec-2014.
Malindo is also expanding its domestic network and will soon serve more airports in peninsular or west Malaysia, 12, than any other carrier. Malindo recently added Ipoh as its 10th destination in peninsular Malaysia and will launch services at Malacca and Kerteh in Nov-2014.
Kerteh will become Malindo’s ninth domestic route from its fast growing turboprop base at Kuala Lumpur Subang. In comparison Malaysia Airlines (MAS) regional subsidiary Firefly currently operates seven domestic routes from Subang although it has a bigger international network and is still the leading airline overall at Subang.
Lion Air Group Malaysian affiliate Malindo Air is focusing expansion in 2014 on its turboprop operation in response to opportunities on short routes within Malaysia. Malindo added five ATR 72-600s in 1H2014 and is taking another five in 2H2014, giving it a fleet of 13 ATR 72s but only eight 737-900ERs.
The heavy reliance on turboprops was not expected but enables Malindo to serve routes that are under the radar screen of all-A320 operator AirAsia. Malindo is instead competing mainly with Malaysia Airlines regional subsidiary Firefly as it has focused most of its expansion so far this year at Kuala Lumpur’s second airport Subang.
Malindo is planning to open by the end of 2014 a second turboprop base at Penang and is also looking at potentially opening bases in the east Malaysian cities of Kota Kinabalu and Kuching. The new bases will support several new routes, some of which are completely unserved.
As Kuala Lumpur's rapid LCC-driven traffic expands, AirAsia has unveiled plans for further expansion at Senai International Airport in the southern Malaysian state of Johor, just across the Causeway from neighbouring Singapore. The LCC group plans to add three international routes from Senai in Jun-2014, giving it six international routes, including five to Indonesia. AirAsia also recently launched its eighth domestic route at Senai.
Senai was the fastest growing airport in Malaysia in 2013 and one of the fastest-growing in Asia, with 44% growth, but off a low base, to 2 million passengers. Senai traffic grew by another 36% in 1Q2014 to 550,000 passengers. AirAsia, which currently accounts for about two thirds of total capacity at Senai, has been the main driver.
While Johor has its own fast-growing market, driven by rapid economic development in the state, it offers competition to some extent with nearby Singapore. The three new international routes at Senai for AirAsia, including two to Indonesia and one to Vietnam, come as the LCC group once again faces roadblocks in expanding its Singapore-Indonesia operation.
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.