Can Firefly take over Malaysia Airlines?

By Zaidi Isham Ismail

The aviation sector was abuzz last week on the possibility that Firefly could take over Malaysia Airlines (MAS) as the national carrier.

Khazanah Nasional told a daily newspaper last Thursday that plans are afoot to bundle up MAS and transfer its assets to its low cost carrier arm.

Can this plan work?

Analysts said this could be a good idea after all as Firefly already has a strong domestic and regional presence and is already carving its name in the Asia Pacific region.

"All passengers need to do now is to get used to flying on turbo-prop instead of jet engines.

But Firefly already started its jet operations to Penang last week paving the way for a smooth transition from turbo-prop to jet engines."

The Maybank Investment analyst said Firefly already has a clean record and could inject the much needed new lease of life into MAS.

Downsizing would be a painful exercise, but it will be better than allow MAS to bleed profusely.

MAS should also evaluate its fleet requirements. With six Airbus A380s grounded it is clear the aircraft will never take to the skies again," said the analyst.

The writings are on the wall that flying will never be the same again. 

Perhaps for Firefly to work, the frills will have to be cut.

Inflight offerings will also need to change. 

Air travellers will now have to pay for food and beverage on all flights.

Free meals will be a thing of the past.

Prior to COVID-19, MAS focused on the leisure and business markets. Well now, not anymore.

Low cost carriers have changed the landscape of the aviation industry and the pandemic will dilute it further.

No airline whether premium or low cost carrier will ever be the same again.

Fares on domestic and international routes are expected to increase significantly.

MAS should seriously consider re-introducing Firefly's jet operations for domestic and regional flights utilising its ready 737-800 fleet and pilots before borders are re-opened.

The analyst said an alternative is for Firefly to initially operate the Boeing 737-800 fleet.

Firefly should start on a smaller scale and don't be too ambitious.

Admittedly, each regional destination will not be like what it was during pre-COVID-19 levels and it will be more difficult to compete with other low cost carriers especially on the same routes.

But at least, it would be a great start for Firefly to gain initial ground.

No national airline will survive and match the low fares offered by the low cost carriers post pandemic.

Overcapacity in the market and low yields could be challenges for all airlines.

But Firefly's jet operations have the potential to soar in the domestic and regional markets.

Just last week, it ramped up 10 jetplane flights to Penang, which is something that the market needs right now in this COVID-19 era.

Things have to be tweaked now. Start small, start slow but surely.

Even AirAsia is now flying 80 planes instead of 350 planes and it is also developing its very own super app and delving in the restaurant business.

Endau Analytics said on BFM, Malaysia's aviation has been overcrowded anyway with AirAsia, MAS and Malindo swamping the aviation landscape.

Perhaps with MAS out of the picture, a new lease of life would be injected into the fledgling MAS and give birth to a brand new national carrier we all yearned for. - DagangNews.com
 

The writer is former NST Business assistant editor