NICHOLAS IONIDES / SINGAPORE

Malaysian carrier set to restart domestic operations in May after extensive revamp and changes at the top

Malaysian carrier Pelangi Air, which stopped operating last October after years of losses, is acquiring two used ATR 72-200s for a re-launch that is tentatively set for May.

According to an airline source, Pelangi agreed to acquire the aircraft from ATR earlier this year. The turboprop manufacturer announced a deal with a "new Malaysian operator" for two ATR 72-200s at the Asian Aerospace 2002 air show in Singapore in February, but refused to identify the carrier.

Pelangi has been undergoing an extensive internal restructuring since its October shutdown that includes the installation of new top management. It is also set to have a new ownership structure.

The Terengganu state government currently holds around 31% of the carrier, but is expected to increase its stake through the infusion of additional cash. Other government-owned companies may also buy into the airline, the source says.

Pelangi, which over the years explored a merger with national carrier Malaysia Airlines (MAS) but repeatedly failed to agree terms, aims to resume services within peninsular Malaysia, as well as to eastern states and to points in Indonesia, possibly from 1 May. Until its shutdown it operated two Fokker 50s, but these are now being offered for sale.

Pelangi hopes it will prove popular among Malaysians when it resumes services, as it will operate from Kuala Lumpur's Subang airport, rather than Kuala Lumpur International Airport (KLIA) at Sepang, which is much further from the city centre.

The Malaysian government recently announced Subang would not be available for jet operations after April, when a rail link opens between Kuala Lumpur and KLIA. The change will affect low-fare carrier AirAsia, and MAS and Transmile Air, as they will have to shift domestic jet operations out of Subang.

Source: Flight International