MAS subsidiary to take on AirAsia
Facing the prospect of competition from low-cost carriers on the lucrative Kuala Lumpur-Singapore route, Malaysia Airlines is preparing new subsidiary Firefly to face the challenge.
MAS launched Firefly last April using Fokker 50s. In December it ordered 20 ATR 72-500s (see picture), including 10 for Firefly and 10 for its MASWings subsidiary. Firefly, which operates domestically and to Thailand, will use the ATRs to launch new international routes. It already wants Firefly to serve Singapore from Kuala Lumpur.
Malaysia and Singapore recently agreed to allow services by low-cost airlines on the lucrative route from February. Singapore has awarded one daily frequency to Tiger Airways and one to Jetstar Asia. AirAsia has been lobbying for the two frequencies available to Malaysian carriers but MAS wants Firefly to be given some as well. "The government is taking the lead on this and we are waiting for their decision," says Firefly chief executive Eddie Leong. "We are not asking for special treatment in this issue, we only want equal treatment."
Stéphane Mayer, ATR (left) and YM Tengku Azmil Zahruddin, MAS
Source: Airline Business
