The ongoing dispute between Malaysia and Singapore over issues including air space is inflicting “significant” damage on loss-making Firefly, the turboprop affiliate of Malaysia Airlines Bhd.
Singapore’s Changi Airport on December 1 moved Firefly’s slot to Seletar Airport, as part of its plans to transfer all chartered business jets, private jets and turboprop operations to Seletar, freeing up slots at Changi for larger aircraft.
However, the Malaysian government has declined to approve a route between Subang in Malaysia and Seletar, saying Seletar’s instrument landing system (ILS) would encroach upon the Pasir Gudang port airspace, resulting in safety concerns.
“The current impact on our top line and bottom line has been significant,” Malaysia Airlines group CEO Captain Izham Ismail told the Edge Financial Daily.
“Firefly operated 20 daily flights to Changi Airport. It was operating at an average passenger load factor of 65% to 70% and a full load during festive periods such as Chinese New Year,” he said.
Izham said Firefly has started to look at deploying its assets to secondary markets such as Penang.
Meanwhile government ministers from Singapore and Malaysia said relations remain cordial between the two while they seek a solution.
Singapore's transport minister Khaw Boon Wan stressed that the country's plans to introduce ILS for Seletar Airport would not pose any safety or security risks to operations at Johor's Pasir Gudang port.
He added, "Firefly knew that we are shifting them to Seletar and they have planned on that basis. They inspected Seletar. They are very pleased with Seletar Airport and as a result, months ago, they applied for slots in Seletar and we welcome them there and their slots in Changi have therefore been given up and redistributed to other airlines."