Malaysia Shakeup
Malaysia Airlines (MAS) is planning to establish a new full-service carrier and, in a separate development, to reposition its low-cost carrier, Firefly. Firefly Managing Director Eddy Leong is quoted in The Sun Daily newspaper as saying Firefly’s Boeing 737s will be transferred to Sapphire, the shorthaul, full-service carrier MAS is establishing, which will be managed by Firefly. He says Firefly will stop operating jets and become purely a full-service turboprop operator. Leong adds that the decision to establish Sapphire was made on Aug. 12 during a management meeting that included MAS Chairman Mohammed Nor Yusof and its newly appointed director, Tony Fernandes, who is Air Asia group CEO. When contacted by Aviation Week Aug. 18, Leong could not comment, as MAS has imposed a “gag order for now. You’ll need to channel your questions to MAS,” he added. But MAS’s top spokeswoman would only say: “Everything is very new and management is trying to sort out a lot of information. We don’t have permission yet to comment.” She did say that MAS’s newly appointed board is due to have its first meeting this week. Firefly, which was founded in 2007, was originally a full-service turboprop operator, but in January of this year it added 737s and started competing in the low-cost carrier segment head-to-head against Air Asia. This month, MAS and Air Asia signed a collaboration agreement in which each side promised to concentrate on their core segment. In other words, MAS would focus on the full-service segment, and Air Asia on the low-cost carrier segment. MAS’s decision to establish a fullservice short-haul carrier would seem to suggest that MAS mainline will stop operating narrowbodies in favor of widebodies, a similar strategy to that of Singapore Airlines (SIA). Thai Airways International also is about to embark on that path. SIA mainline only operates widebodies, leaving narrowbodies to its full-service subsidiary, SilkAir. Thai Airways, meanwhile, is planning to transfer its full-service narrowbody operation to Thai Wings, a new business unit that is being established. ©
By LEITHEN FRANCIS