Malaysia's Saeaga Airlines is postponing plans to order new Airbus Industrie A320s, and the launch of its first scheduled international services, in the face of the recent Asian currency crisis and economic downturn.
"We're looking to buy five A320s, but this has now been deferred," says Ting Pek Khiing, chief executive of Saeaga parent company Ekran Berhad. "Once the economy stabilises, we can go forward in a big way, but we're now looking at an economic turmoil and a slowdown," he adds.
The airline has already signed a two-year lease agreement with Singapore Aircraft Leasing Enterprise for two International Aero Engine V2500-powered A320s and will take delivery of the aircraft in August and September 1998. As an alternative to purchasing its own A320s, Ting suggests that Saeaga might lease additional aircraft in the interim.
Saeaga has also been forced to put on hold plans to launch international services. The carrier had been considering a variety of different regional destinations, including Beijing, Guangzhou, Kunming Shanghai, Shenzhen and Xiamen in mainland China; Hong Kong; Manila in the Philippines; Manado in Indonesia; and Taipei.
"We're now going to concentrate on domestic services, such as from East Malaysia to Kuala Lumpur and Langkawi. Before we inaugurate regional services to neighbouring countries, we must first see an improvement in the economy," explains Ting.
The airline's fleet of two Bombardier de Havilland Dash 8-200/300s and a single Canadair RJ are used to operate a limited scheduled service within East Malaysia, connecting Bintulu, Kota Kinabalu, Kuching, Layang-Layang, Miri, Mulu, and Sibu. The two-year-old carrier also flies charters to the Philippines.
With the delivery of the two leased A320s, Saeaga plans to expand services beyond the East Malaysian states of Sabah and Sarawak to West Malaysia. New managing director David Chew estimates that, with two narrowbody jet airliners, Saeaga will be capable of operating up to three round trips a day to Kuala Lumpur and Langkawi.
Saeaga also wants to enter into an interline agreement with major international carriers operating into Malaysia. The carrier has opened talks with British Airways, China Airlines of Taiwan, Germany's Lufthansa and flag carrier Malaysia Airlines.
Meanwhile, Malaysia's other start-up carrier, AirAsia, is negotiating with Airbus to secure two leased used A310-300s for new longer-haul services to the Middle East and Japan.
Source: Flight International
