Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Ja Singh

Firefly may take MAS jets to expand

Recommended Posts

FY publicised to the world that it is offering a RM9 all in fare (RM0.01 + 8.99 airport tax) during the promo period starting from 8-Nov. This means no admin fee, and there wasn't.... until 1 day later! It seems that FY messed up, as there can never be an all in fare of RM9 during the promo period if admin fees suddenly appear on day 2.

 

On the analyst's report - most of the data on fees are based on the pre-existing FY operating model. Furthermore, the analyst loses a lot of credibility when he creates his own aircraft (ATR75) and seems confused between a 734 and a 738, and between a terminal and an airport ("KLIA is preferred terminal over LCCT") in the very same report.

I think FY might either:

- overlooked the admin fee issue for the bookings on the first day

- purposely waived the admin fee for all bookings made on the first day

 

FY might also was not informed by MAHB about this admin fee until the 2nd day, but this is unlikely. An airline must be aware of all its cost elements (which includes this admin fee) way beforehand.

 

Re the analyst report, yes there seems to be many tiny typo and wrong usage of terms but of course we understand what he meant - ATR75 is ATR 72-500, 734 instead of 738 might referring to FY's previous plan of leasing 2 B734s first from MH then from Indonesia and KLIA is referring to MTB.

 

Analysts do their research based on previous published info and data so for this FY assignment, there are not many that could be done because data about FY is very scarce. This also explains why the research are mostly based on FY's pre-existing operating model, simply because there is no hard reference for FY's future operating model even projected numbers.

Share this post


Link to post
Share on other sites

This also explains why the research are mostly based on FY's pre-existing operating model, simply because there is no hard reference for FY's future operating model even projected numbers.

Which really just reinforces Mushrif's doubt on credibility of the analyst's report :p

Share this post


Link to post
Share on other sites

Re the analyst report, yes there seems to be many tiny typo and wrong usage of terms but of course we understand what he meant - ATR75 is ATR 72-500, 734 instead of 738 might referring to FY's previous plan of leasing 2 B734s first from MH then from Indonesia and KLIA is referring to MTB.

 

 

In the investment banking world, you lose a lot of credibility if you cant even get the simple basic facts correct and you overlook spelling errors. If one couldn't be bothered to dot the "i's", how does one expect others to have faith in one's assessments or opinions? So, in this case, is the analyst really referring to 734s or 738s? The reader should not be forced to make assumptions on which sub-type the analyst was actually referring to. Remember how folks on MW ridiculed that short-lived Ipoh-based airline based on merely the contents of its website?

 

Anyway, going back to FY - there seems to be a bug in the total pricing of the fare, if one were to choose the frills on ala'carte basis. From my experience, if one were to add baggage allowance on piecemeal basis - this add-on cost is not reflected in the total pricing of the fare payable.

Edited by Mushrif A

Share this post


Link to post
Share on other sites

Ive seen it in the hangar at SZB 2 days back..most probably still in here for pre-service mod. :good:

 

Does this mean that the next time we see it, it'll be in FireFly livery already?

Share this post


Link to post
Share on other sites

Here what i got from Firefly Airlines.

 

Helpful hint: Dear Fans, congratulations if you've managed to get a RM9 promo seat to East M'sia! Don't worry if you have not bought your checked-baggage allowance, sports equipment allowance or in-flight meal online - you can still do so up to 48 hrs before date of departure. Just click on View/Change Booking at fireflyz.com.my or contact our call centre for assistance.

Share this post


Link to post
Share on other sites

Friday November 12, 2010

 

MAS uses Firefly to fight AirAsia

Friday Reflections - By B.K. Sidhu

 

MALAYSIA Airlines (MAS) has admitted that it is tough fighting a low-cost carrier (LCC).

 

It has decided to use its wholly owned unit, Firefly, to take on AirAsia. Firefly will turn into a true blue LCC and use jets in the attack.

 

On Monday, Firefly said it would fly commercial jets for domestic routes and begin with crossover routes, e.g. Kota Kinabalu and Kuching, on Jan 15. Asean will be its next stop.

 

Its B737-800s will take off from KL International Airport (KLIA). Firefly wants to have a fleet of 30 aircraft in five years and that means forking out a lot of money to keep up with competition.

 

Perhaps parent MAS has a plan to help with the purchases. Firefly will still maintain its turboprop operations at Subang.

 

Firefly wants to work on a model like that of Southwest and Ryanair – the global airlines that have made it big in low-cost travel. This is also the same model that AirAsia used nine years ago and today AirAsia is a household name in many Asean countries.

 

Firefly is aiming to have the lowest unit cost, lower than AirAsia's 11.2 sen. And expect Firefly to follow AirAsia's example in "throwaway" fares and free seats to fill up its airplanes.

 

Firefly fired its first salvo this week by offering tickets for as low as RM9 for travel between Jan 15 and May 31 next year from KL to Kota Kinabalu and Kuching. Understandably, this has created some buzz about Firefly's entry to the LCC world.

 

The latest development means more competition and hopefully this translates to more lower fares, better quality of services and wider choices.

 

Flashback a decade ago when we had to pay premium prices to travel. Today, for RM1 it is possible to reach somewhere by air. Had there been no competition we would still be paying premium prices. So there is really enough room for more competition.

 

For Firefly, the takeoffs from KLIA mark a new beginning and the only way to go is up. For MAS, it does not need to bend backwards to fight the low fares offered by AirAsia.

 

For AirAsia, the heat is on even though its flamboyant boss Datuk Seri Tony Fernandes seems unperturbed. To him, competition is not new and he is not going to sweat over legacy carriers.

 

The tourism sector will get a boost with wider access and Malaysia Airports Holdings Bhd will have a new airline operating from KLIA.

 

While there are so many positives, the skeptics have their own views. To them, "MAS had no choice but to opt for a hybrid model to compete with AirAsia for short haul routes."

 

They also do not think Firefly will be able to expand as aggressively as AirAsia as Firefly needs to coordinate everything with MAS. There is also the possibility of MAS' network shrinking if Firefly takes some of its routes and in some areas Firefly will have to compete head-on with MAS.

 

While Firefly thinks it can bring costs down, the skeptics say it is not going to be easy.

 

Competition is good as it gives people the right to choose the best. Hopefully we will see fewer flight delays and cancellations, better quality services, aerobridges used at the new LCCT, fares continue dropping and more new destinations springing up.

 

But one thing the LCCs should seriously consider is offering up to 20kg free check-in luggage. Some LCCs in the world are doing it, so why not the Malaysian LCCs?

 

Of course, if they can add inflight entertainment for the short haul routes, that would be a bonus.

 

I believe in this age and time, even travellers – even if they are paying cheap fares – should not be deprived of entertainment on board.

 

# Deputy news editor B.K. Sidhu is looking forward to her holidays.

 

http://biz.thestar.com.my/news/story.asp?file=/2010/11/12/business/7416119&sec=business

Share this post


Link to post
Share on other sites

Main reason why IFE is deleted from LCCs is the weight penalty and low take up rate (around 30-35%). Added to that fact is a lot of pax who need entertainment already bring their own laptops and other devices. So, they did not want to install PTVs to save weight.

 

However, the future looks good. Many LCCs are considering offering video on demand via WiFi. So those who have laptops can pay for the Wifi entertainment services. LCCs don't have to fit PTVs and pax don't have to pay higher fares due to PTV weight penalty...

Share this post


Link to post
Share on other sites

Main reason why IFE is deleted from LCCs is the weight penalty and low take up rate (around 30-35%). Added to that fact is a lot of pax who need entertainment already bring their own laptops and other devices. So, they did not want to install PTVs to save weight.

 

 

Not to mention the licensing of the programs.

Share this post


Link to post
Share on other sites

Guys,

 

To avoid misunderstanding for our international readership: please use full-name or correct 2-letter codes !!!

 

AA = American Airlines

AK = Air Asia

 

:pardon:

Share this post


Link to post
Share on other sites

Guys,

 

To avoid misunderstanding for our international readership: please use full-name or correct 2-letter codes !!!

 

AA = American Airlines

AK = Air Asia

 

:pardon:

 

:good:

 

Some pilot community forums still can't get this right. =@ There are at least 2 that I know of, one international forum and the other one is an internal association forum.

 

Sorry for being off topic here.

Share this post


Link to post
Share on other sites

From a pax point of view, competition offer choices and benefit consumers :good:

 

Operation cost of 734 is almost the same for both MH and FY, what can FY achieve that MH can’t? :sorry:

 

As MH receive gomen subsidy on domestic routes, will FY benefited from these subsidy? Will FY operate from KLIA2/New LCCT when completed?

 

:drinks:

Share this post


Link to post
Share on other sites

Operation cost of 734 is almost the same for both MH and FY, what can FY achieve that MH can’t? :sorry:

 

Bro, FY has said that they are going to be getting B738's, what's the point of talking about B734's?

Share this post


Link to post
Share on other sites

From a pax point of view, competition offer choices and benefit consumers :good:

 

Operation cost of 734 is almost the same for both MH and FY, what can FY achieve that MH can’t? :sorry:

 

As MH receive gomen subsidy on domestic routes, will FY benefited from these subsidy? Will FY operate from KLIA2/New LCCT when completed?

 

:drinks:

 

MASWings receives subsidies for RAS. And FY is not MASWings.

Share this post


Link to post
Share on other sites

Bro, FY has said that they are going to be getting B738's, what's the point of talking about B734's?

 

Then what can FY do with 738 that MH can't? :sorry:

 

MASWings receives subsidies for RAS. And FY is not MASWings.

 

MH is operating domestic routes for PMB, a form of subsidy or profit guarantee.

 

Will MH code share with FY from KUL?

Edited by KK Lee

Share this post


Link to post
Share on other sites

Guys,

 

To avoid misunderstanding for our international readership: please use full-name or correct 2-letter codes !!!

 

AA = American Airlines

AK = Air Asia

 

:pardon:

 

Sorry my mistake :)

 

Btw, what is PTV (in-flight entertainment i assume?)

Share this post


Link to post
Share on other sites

Sorry my mistake :)

 

Btw, what is PTV (in-flight entertainment i assume?)

 

Jingkai, just to share :D

 

PTV = Personal Television

Some airlines have now installed personal televisions (otherwise known as PTVs) for every passenger on most long-haul routes. These televisions are usually located in the seat-backs or tucked away in the armrests for front row seats and first class. Some show direct broadcast satellite television which enables passengers to view live TV broadcasts. Some airlines also offer video games using PTV equipment.

 

AVOD = Audio-Video On Demand

Edited by Ikman Ikreza

Share this post


Link to post
Share on other sites

Then what can FY do with 738 that MH can't? :sorry:

 

 

 

MH is operating domestic routes for PMB, a form of subsidy or profit guarantee.

 

Will MH code share with FY from KUL?

 

It is not profit guaranteed! There is limit to it otherwise tanggung sendiri

Share this post


Link to post
Share on other sites

×
×
  • Create New...