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Firefly and economic slowdown

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Help Firefly maintain Penang strategy

 

Written by Regina William

Tuesday, 10 March 2009 22:49

 

GEORGE TOWN: Penang Chief Minister Lim Guan Eng wants the federal government to provide Firefly with RM20 million in financial assistance under the second fiscal stimulus package to enable the community airline to continue with its strategy of maintaining Penang as its second hub after Subang.

 

Lim, who sent a letter to Deputy Prime Minister Datuk Seri Najib Razak, said he had been informed by the budget airline that due to unfavourable economic conditions, it was planning to reduce significantly its flights out of Penang.

 

The routes which will be suspended in the cutback from March 29 include the Penang/Kota Bharu (seven times weekly), Penang/Kuala Terengganu (seven times weekly), Penang/Kuantan (seven times weekly), Penang/Phuket (four times weekly) and Penang/Koh Samui (four times weekly).

 

The remaining routes from Firefly's Penang bub are Penang/Subang (35 times weekly), Penang/Langkawi (14 times weekly), Penang/Johor Bahru (seven times weekly), Penang/Medan (14 times weekly) and Penang/Banda Aceh (four times weekly).

 

Lim in his letter stated that it was also expected in the second quarter of this year that the Penang/Medan and Penang/Langkawi routes will be reduced to seven times weekly.

 

With the cutback, Lim said plans for additional routes Penang/Krabi, Penang/Huahin, Penang/Suratthani, Penang/Nakhon Si Thammarat, Penang/Narathiwat, Penang/Hatyai, Penang/Trang, Penang/Pattani, Penang/Pekan Baru and Penang/Padang have been suspended indefinitely.

 

He said Firefly had positioned Penang as its secondary hub to serve as a link to major domestic cities and as a feeder for medium- and long-haul airlines operating into and from Penang.

 

"It was also to help position Penang as a hub to the IMT-GT region linking a region of 70 million people and to act as a catalyst for economic expansion of Penang by improving air connectivity to the island state," he added.

 

He said Firefly commenced operations on April 3, 2007 but since the routes from Penang are developmental in nature, it had sustained significant financial losses of RM10 million in 2007 and RM12.4 million in 2008.

 

Blaming the losses on the sudden and rapid deterioration of the global economy which has also affected Penang, Lim said Firefly would be unable to continue without any financial assistance from the state or federal government.

 

http://www.theedgedaily.com/political-news...g-strategy.html

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Help Firefly maintain Penang strategy

He said Firefly commenced operations on April 3, 2007 but since the routes from Penang are developmental in nature, it had sustained significant financial losses of RM10 million in 2007 and RM12.4 million in 2008.

 

Is current FY business model viable or feasible? :pardon: :sorry: May be it is time to relook at FY business model.

 

Believe FY need to dump the ‘community airline’, to become a proper LCC with hub at SZB, or operating from KUL as MH feeder.

 

:drinks:

Edited by KK Lee

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A very expensive experiment or toy at the expense of the rakyat which looks more like a tactical move to create a thorn in the side on a thorn in MAS' side.

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Eddy should be more active like Idris Jala & Tony Fernandes.

FY should operate the golden route rather than

nonprofit route. Maybe DSIJ must train Eddy more

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Off topic

 

Last sunday my FY flight PEN-SZB at 1045H was cancelled. Just 20 pax scheduled to board the plane.

 

Luckily we were transfered to MH flight, also departing at 1045H

 

Yeayyyyy

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Off topic

 

Last sunday my FY flight PEN-SZB at 1045H was cancelled. Just 20 pax scheduled to board the plane.

 

Luckily we were transfered to MH flight, also departing at 1045H

 

Yeayyyyy

 

 

Only 20 pax!!! Wow.... Dats a disaster... FY is lucky in that they can cancel the flite and put the pax on MH flites.

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Only 20 pax!!! Wow.... Dats a disaster... FY is lucky in that they can cancel the flite and put the pax on MH flites.

 

Also means load was low for MH :( What about the transfer between KUL and SZB? What if FY pax parked their car at SZB or to meet someone at SZB? Service recovery by FY/MH? :sorry:

 

Is FY dependable? Hope FY won’t become CAAC.

 

:drinks:

 

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Eddy should be more active like Idris Jala & Tony Fernandes.

FY should operate the golden route rather than

nonprofit route. Maybe DSIJ must train Eddy more

 

I agree with Sofian.

 

Firefly must also be creative in their marketing approach without spending too much $$$. They call themself a community airline, then get joint venture with the community-lah

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OT, but FY has been screwing up its schedule not long after it started operations. I'll never forget my experience arriving at KUA only to find the flight (KUA-PEN) was cancelled. This resulted in wasted RM50 taxi from Kuantan town to airport vv on that day, unplanned hotel stay in Kuantan for one night, and missed appointment at PEN. FY will forever be remembered as an unreliable airline in my mind.

 

The management didn't even offer an apology, and the people at its callcenter didn't even try to contact me either via telephone / SMS or email, to inform of the flight's cancellation.

 

I suppose with the current economic slowdown, many will be disappointed with cancellations, retimings etc etc. They'll love Firefly to bits :)

Edited by Rozhan

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There were pissed-off passengers complaining about transfer to MH.

As for me, I stay somewhere in the middle of both airports. So, it was not a big issue.

 

About MH flight, from my observation, even after 20 of us joined the flight, there were still empty seats, quite a bunch actually.

Poor load..

Pity them!

 

 

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Honestly, does FY really need to fly direct to all these ports?

No doubt it could align its schedule to feed into MH network, unless FY is trying to be a stand-alone airline based in Penang. In which case, it should not even ask for gomen subsidy. My view is, if you want to run an airline, you do your maths and you decide how you will remain profitable in your business.

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out off topic..

 

Batam & Padang already in booking panel. My uncle was made group booking to Padang for 60 pax yesterday.

Only RM220 per person (two way) with 20kg baggage allowance!! So cheap.. Now my uncle can gain extra profit

with Firefly.

 

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