business

Firefly incurs significant loss following operation suspension to Singapore

KUALA LUMPUR: Malaysia’s premium short-haul airline, Firefly has incurred ‘significant’ loss following its recent flights suspension to Singapore which began on December 1.

Firefly outgoing chief executive officer Ignatius Ong said Singapore was the airline’s second largest route after Penang, which was scheduled to transfer its operations from Changi Airport to Seletar Airport.

“We previously had 10 slots of flights (in-bound and outbound) every day between Subang International Airport and Changi Airport in Singapore. Without this route network, it’s a huge loss for us,” he told NST Business.

Ong said the airline’s suspension was made due to the pending approval from the Civil Aviation Authority of Malaysia (CAAM) for the airline to operate via Seletar Airport.

While noting that Firefly has no issues shifting its operations from Changi to Seletar, such move also requires approvals from Civil Aviation Authority of Singapore (CAAS).

“I won’t elaborate too much as it involves government-to-government issue. From a commercial perspective, we are abiding or adhering to their rules,” he added.

The turbo-prop operator said the airline would resume its services once the relevant authorities sort out regulatory issues in regard to its move to Seletar.

“Frankly, we have no issue going to Seletar. We were invited to see the new terminal at Seletar three months ago.

“The terminal is fantastic, it’s similar to Subang Airport - small and agile terminal that facilitates convenience,” he said.

Ong pointed out that Seletar Airport, like Subang Airport, has fast and efficient check-ins.

“People like it because it’s near to the city and getting in and out of the aircraft is fast,” he said.

Recently, Transport Minister Loke Siew Fook said Malaysia would present a counter proposal on aircraft landing path for Seletar Airport in Singapore.

Loke added that Malaysia’s airspace sovereignty is challenged when the Singaporean government registered Seletar Airport’s landing instrument system (ILS) via Pasir Gudang airspace in Johor.

“Our position is loud and clear. ILS approach towards Pasir Gudang is a ‘no-no’ to us. We want to discuss with the CAAS on an alternative counter proposal,” he said.

Loke said the development area in Pasir Gudang will be constrained if the government allows the ILS to be registered for the Seletar Airport.

“Malaysia needs to be referred by the Singaporean government before any decision is made to allow the use Pasir Gudang airspace as their landing path,” he said.

Asked on its take on the landing path dispute at Seletar Airport, Ong said: “We are here to do business as the commercial airline.

“Assuming that the Malaysian government does not allow the encroachment of the country’s airspace in reference to the landing path for Seletar, my request for the Malaysian government is to support and get us back into Changi,” he said.

Ong said Firefly would be more than happy to fly back to Changi if that should be the requirement.

“However, we are not saying that we don’t want to operate via Seletar. Until the time when both governments have agreed to approach or resolve the landing path issue, we are fine to fly into Seletar,” he said.

Firefly has yet to ascertain time frame on when it will resume operations to Singapore.

Changi Airport Group, during an opening of a new terminal, said all turboprop operations at Changi would move to the new Seletar Airport terminal from Dec 1.

Opened on Monday (Nov 19), the new terminal is scheduled for commercial flights and business aviation involving passengers travelling on chartered business flights and private jets.

Seletar Airport will also handle all scheduled turboprop flights in Singapore from that day, the airport operator said.

Loke reportedly said Malaysia would send a note of protest to Singapore over its new ILS for Seletar Airport, which had been linked to the barring of Malaysia's budget airline operator Firefly from relocating to the airport.

On Nov 24, it was reported that Firefly was unable to obtain approval from CAAM to operate from Seletar Airport.

On another note, Ong said Firefly won’t be adding any turboprop aircraft for its near future’s expansion due to over-capacities offered by airlines operating at the Subang Airport.

“Subang Airport has two players Firefly and Malindo. We feel that both airlines are putting a little bit of capacities at this point in time.

“Unless the market changes, if either one player reduces its flight capacities which require us to fill the gaps,” he said.

Ong said Firefly aspires to grow responsibly by not adding unnecessary capacities into the market, which in turn would make airfares lower.

“It may good for the passengers but for the sustainability of the airline, is not good. We want to grow in accordance with the demand and supply matches.

Most Popular
Related Article
Says Stories