Firefly not expecting negative impact from entry of Malindo

Firefly not expecting negative impact from entry of Malindo

 

Community airline, Firefly is not anticipating any negative impact to its operations and load factor, as new hybrid carrier, Malindo Airways prepares to start operations later this month.

Its Chief Executive Officer Ignatius Ong said competition was not something new to the five-year old airline, and believed, it would triumph due to several travel niches.

"There is still a high level of demand to be catered for. When Malindo Airways enters the industry, there would be competition. But I believe, there is room for everyone.

"With our operations based at the Subang city airport, we have a niche that our competitors do not have," Ong told reporters after Firefly's Career in Aviation Programme, here on Wednesday.

Malindo Airways is slated to commence operation on March 22 with a hybrid business model, which offers a full-service carriers' offering for low-cost carrier (LCC) type fares.

For a start, Malindo Airways has announced a one-way, all-in promotional air fare from as low as RM38 to Kuching and RM68 to Kota Kinabalu from Kuala Lumpur.

Ong said Firefly is not disturbed by the low-promotional fares that Malindo Airways is offering, as "new airlines have to seek passengers."

"I have even seen lower fares that what they (Malindo) are offering. At the end of the day, we must know how to keep our customers, and I am sure Firefly is on the right track," he said.

Ong said Firefly would be establishing Johor Baharu as its newest hub, besides the Subang and Penang airports at present.

"We have seen tremendous demand from Johor and are going to be very strong there in the coming months. It will be our new hub.

"The two new ATR turboprops to be given to us this year, will also be used to serve the Johor Baharu hub," he added. This year, he said Firefly would not be aggressively introducing new routes, but instead reinforcing some of the existing ones, while adding more frequencies to others where needed.

He also said firefly expects about 10 to 15 per cent growth in passengers this year, against the 1.7 million carried in 2012.

"If everything goes in line with our plan, we will be able to reach the two million passengers mark by year-end," he added.

The two million passengers target was initially expected to be realised by the end of next year, according to the business plan of Malaysia Airlines, Firefly's parent airline.