Malaysia Airlines launches new brand

Published: 19/03/07

Kuala Lumpur based Malaysia Airlines has launched a new low cost subsidiary in a bid to cut costs and develop additional business streams to increase profit. Firefly will offer regional services across Malaysia and South East Asia on a no frills basis, and although it will run as a separate entity from parent company Malaysia Airlines, it will not compete directly.

Other revenue streams being explored by Malaysia Airlines include an aircraft maintenance centre that it will open to other carriers, allowing them to outsource routine repairs and servicing of aeroplanes.

Malaysia Airlines has struggled to compete with other regional rivals over the last few years, but under a new chief executive, Idris Jala, it has returned to profit, and is now aggressively expanding to increase market share.

Last year as part of its overall restructuring, the carrier laid off hundreds of staff and cancelled certain loss making routes to concentrate more on its core long haul routes such as flights to Kuala Lumpur from London Heathrow.

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