- CAPA Analysis
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- Fast Fact Report
- Airline Status
- IATA Code
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- 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
- Full Service Carrier
- 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. The carrier is part of the transportation services division of Malaysia Aviation Group Bhd.
Location of Firefly main hub (Kuala Lumpur International Airport)
358 total articles
22 total articles
Malaysia Airlines, Firefly, MASwings: new domestic strategy – flat capacity, more aggressive pricing
The Malaysia Airlines Group plans to maintain current capacity levels in the Malaysian domestic market but is aiming to recapture market share through load factor improvements. The group’s domestic market share has slipped from 45% to less than 37% since 2013 as its domestic passenger traffic has dropped by more than 10%, due to capacity cuts and load factor declines.
Malaysia’s other two domestic players, AirAsia and Lion JV Malindo Air, have steadily grown their market share since launching in 2001 and 2013 respectively. AirAsia currently has a leading 45% share of domestic capacity in Malaysia – and an even higher share of traffic given its higher average load factors – while Malindo has approximately 14% and the Malaysia Airlines Group 41%.
The Malaysia Airlines Group is introducing a new, more aggressive pricing strategy in both the domestic and international markets in an attempt to boost load factors and regain market share. Malaysia Airlines’ domestic load factor was only 65.6%% in 2015 and slipped to 64.7% in 1Q2016. Firefly’s load factor was also below 70% in 2015, while MASwing’s load factor was below 60%.
Malaysia domestic aviation 2016: AirAsia impacted as Rayani enters, Malaysia Airlines resumes growth
Competition in Malaysia’s domestic market will intensify in 2016 as Malaysia Airlines resumes growth and start-up Rayani Air expands. The Malaysian domestic market should experience significantly faster growth than 2015 but yields will be under pressure, impacting profitability.
Malaysia’s domestic market grew by only 2% in 2015, marking the slowest rate of growth since 2006. The market has more than doubled in size since 2003, driven by expansion from AirAsia.
Malaysia Airlines domestic traffic has dropped significantly over the last six months and total domestic capacity in Malaysia is currently below year ago levels. But Malaysia Airlines expects to resume growth after opening seven new bases in secondary cities and introducing a new domestic schedule in Apr-2016. Meanwhile Rayani will begin competing on already crowded domestic trunk routes, joining AirAsia, Malaysia Airlines and Malindo Air.
There is perhaps no greater indicator of the nuances in aviation than dual brand strategies. The United-Ted and Delta-Song approaches are mostly forgotten while Qantas-Jetstar trumpet alignment and newcomers like Lufthansa-Eurowings have to insist their plan will work.
What unites the attempts, successes and failures is a belief that dual brand strategies can be a silver bullet, not only gaining back lost passengers but securing new ones. Inevitably there is a lot more to it than that.
A successful dual brand airline strategy needs proper management, but this alone does not guarantee success. External forces can bring a swift end. Labour relations are often a critical factor for success or failure, but also whether a dual brand strategy is needed in the first place.
Malaysia Airlines' restructuring enters new phase with fleet & possible regional capacity reductions
Malaysia Airlines (MAS) has begun a new phase of its long restructuring process, as it starts to reject aircraft leases. MAS transitioned to a new company on 1-Sep-2015, but the restructuring in many respects is far from complete, and will take another year to implement.
MAS still has the flexibility to reject aircraft leases, giving it a benefit similar to US airlines that are restructuring through bankruptcy protection. While MAS cut capacity and head count prior to the transition to the new company, the flag carrier has only begun the process of reviewing its fleet.
A large portion of the fleet is expected to be returned over the next several months. More capacity cuts are possible, particularly in the domestic and short haul sectors, as MAS has already cut back its network outside Asia to a minimum level.
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.