Malaysian regional carrier Pelangi Airways is poised to begin jet operations with two Fokker F28s. It is to acquire the regional jets, with an additional option, under a $7 million contract signed with Singapore-based Transasian.
According to Pelangi's general manager Zain Salahin, the aircraft are being acquired to serve new routes being added to the 17-destination network. "We have been granted clearance to fly to Bandar Beri Begawan [in Brunei], Bintulu, Bandung and Solo. As the current turboprop fleet cannot cope with these routes, Pelangi Airways is introducing F28s," says Zain.
The airline now runs a turboprop fleet of three 19-seat Fairchild Dornier 228s and two 50-seat Fokker 50s. It has also introduced a F28 leased from charter operator Mafira Air. The new aircraft are to be taken on a lease-purchase agreement over 50 months, says Zain.
The first of the new aircraft is to be handed over in April, the second in June. Pelangi is hoping to take delivery of the third F28 by the end of August, but says the aircraft remains an option because it is not yet available for sale.
The airline has undergone major restructuring in the past year. Plans for a takeover by Malaysia Airlines (MAS) were abandoned when the Asian economic crisis bit in 1997, and this also put paid to an order for Bombardier Dash 8 turboprops.
"We had to suffer a lot of losses, because the [Dash 8] aircraft were built [when the order was cancelled]," says Zain. The cancellation cost the airline $6 million in advance payments to Bombardier, which had a severe impact on the airline's 1998 results.
The entire upper management of the company was changed, under pressure from shareholders, in July. At about the same time, Zain says, the airline's traffic figures benefited from the move by MAS to the new Kuala Lumpur International Airport at Sepang, while Pelangi remained at Subang.
In October, MAS came back to Subang, but not in full force, says Zain. Pelangi is averaging passenger load factors of about 65%. Passenger traffic has doubled from about 500 to about 1,000 passengers a day.
The airline is still struggling with state-imposed low fares, forcing it to charge $53 for a ticket on the 650km (350nm) Penang-Subang route. Fares in Malaysia have not been revised since 1992.
Source: Flight International
