Malindo Air’s inflight stewardesses

This new development of Malindo getting the AOC to operate out of Subang Skypark has pulled the rug out from under Firefly’s wheels as the strategically-placed city airport has been the latter’s hub since it started operations. Subang is popular with passengers due to its proximity to Kuala Lumpur, a factor behind Firefly’s popularity.

Subang, which was Kuala Lumpur’s international airport before the 1988 opening of the KL International Airport (KLIA) in Sepang, is also home to Berjaya Air’s commercial turboprop services. The latter mainly offers services to island resorts such as Langkawi, Tioman, Pangkor, Redang, Penang and Hua Hin in Thailand, and complements rather than competes with Firefly..

With the entry of Malindo to Subang, travellers have more choices when flying to Penang, Johor Bahru (Johor) and Kota Bharu (Kelantan). The airline is offering twice weekly services to these three destinations starting June 3 after taking delivery of its first 72-seat ATR72-600 aircraft on May 20.

When Malindo Air, a joint venture between Indonesia’s PT Lion (49% equity stake) and Malaysia’s National Aerospace & Defence Industries (NadI) Sdn Bhd (51%), started operations in March, the airline was widely expected to give AirAsia a run for its money. It then announced plans to fly to similar regional destinations with added incentives of free inflight meals, 15kg free baggage and WiFi on board. (Read: Malindo takes flight in March, AirAsia’s Fernandes says not a threat.)

Ignatius Ong

However, competition on the regional front seems a bit muted for the moment as Malindo is flying to just two regional destinations currently – Kota Kinabalu (Sabah) and Kuching (Sarawak)  – using KLIA as its main hub for jet operations. The airline said it would expand its services to Tawau (Sabah), Miri and Sibu (both in Sarawak) from KLIA next month .

Firefly, however, seems unfazed by this latest development. In fact the airline has taken a pre-emptive strike by announcing last week a new campaign – Everyday Low Fares –  offering all-in, one-way fares for local and international destinations from as low as RM49 (US$16) to RM249, slashing normal fares by more than 50% for some routes.

The new fares target all market segments and are for an indefinite promotion period, said Firefly CEO Ignatius Ong.

Checks on Malindo Air’s website show that the airline is offering a promotional all-in, one-way fare starting from RM69 from Subang to Penang, Kota Bahru and Johor Bharu, slightly higher than Firefly’s fares.

On the competition from Malindo, Ong reiterated Firefly was “ready to embrace the competition” and was “always prepared if the eventuality comes (new airline coming to Subang).”

Firefly operates its fleet of 12 ATR 72-500 turboprop aircraft out of Subang and Penang, connecting secondary destinations within the Indonesia-Malaysia-Thailand growth triangle as well as linkages between Malaysia and Singapore.

Meanwhile, at another press conference Malindo Air chief executive officer, Chandran Rama Muthy, said the ATR flights out of Subang would initially connect with secondary destinations within Peninsular Malaysia and, later, points in Indonesia such as Batam and Pekan Baru.

Chandran Rama Muthy

Subang Skypark will be Malindo’s second hub after KLIA from where it launched its B737-900ER jet operations to Kota Kinabalu and Kuching on March 23. Two months into operations, the airline boasts of having flown 100,000 passengers. It forecasts flying 1.5 million passengers by year end using 12 B737-900ER jets and six ATRs.

Chandran said the turboprop would complement the airline’s jet operations, and arrangements would be made to provide ground transportation between Subang and KLIA, and interlining routes for seamless travel.

He also revealed the airline was in the process of getting the approvals from the Indian authorities to fly to New Delhi, Mumbai, Trichy and Kochi.

Asked if Malindo would fly to Singapore from Subang, Chandra said, “Not at the moment but you never know.”

The Subang-Singapore service is presently the icing on Firefly’s cake as it is a lucrative route for the airline. If Malindo is to fly to the island republic from Subang too, it would take the battle for the skies from Subang between the two airlines to a whole new level.

So let the battle for the skies begin. In the meantime, passengers on the ground are enjoying everyday low fares and no one’s complaining.