KUALA LUMPUR (July 30): FlyFirefly Sdn Bhd (Firefly), the low-cost subsidiary of Malaysia Aviation Group Bhd (MAG), will cease its jet operations to and from Sultan Abdul Aziz Shah Airport (Subang Airport) in Subang, Selangor on Aug 19 this year, becoming the second airline, after low-cost carrier AirAsia, to do so.

Nevertheless, Firefly’s turboprop services will continue operating as usual from Subang Airport, serving routes to Penang, Seletar (Singapore), Kota Bharu, and Johor Bahru.

MAG said the decision to withdraw its jet operations from Subang Airport is part of the airline group’s long-term network optimisation plan to enhance operational efficiency and ensure sustainable operations for Firefly’s jet services.

In a statement on Wednesday, MAG group managing director Datuk Captain Izham Ismail said relocating all of Firefly’s jet services to Terminal 1 of Kuala Lumpur International Airport (KLIA T1) allows Firefly to scale its jet operations more efficiently, improve passenger connectivity and better leverage MAG’s shared capabilities in engineering, ground handling and catering.

“Subang Airport will continue to play an important role in Firefly’s network through its turboprop operations, which provide essential connectivity across key domestic and regional routes. This decision reinforces our commitment to strengthening KLIA as the main aviation hub, while continuing to offer accessible air travel options across the country,” he added.

Firefly is suspending its jet operations from Subang Airport exactly one year after launching direct flights to Penang, Kota Kinabalu, Kuching, and Singapore. The airline currently operates a fleet of nine ATR 72-500 turboprop aircraft and five Boeing 737-800 aircraft.

On April 7, AirAsia also ceased its jet operations at Subang Airport — just eight months after launching — and relocated them to KLIA T2, as part of a broader operational consolidation. The move freed up five daily slots at Subang. Firefly’s impending withdrawal is expected to release an additional five daily slots.

“Firefly has expressed its intention to cease its jet operations at Subang,” said Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Mohd Izani Ghani during a media briefing on the airport operator’s strategic direction following its privatisation in February, on July 18.

“So far, we are reviewing offers from other airlines to take up the slots vacated by AirAsia. However, I was informed by the government that the priority is to give local airlines the first opportunity.

“Discussions between the Ministry of Transport and MAHB are ongoing. The government will decide whether to allow foreign airlines to operate and take up the remaining slots. I was told that a decision will be made soon,” said Mohd Izani.

Meanwhile, MAG said all affected passengers will be contacted directly and will have the option of a refund, rebooking on sister carrier Malaysia Airlines, or continuing with their existing ticket with the departure relocated to KLIA, in line with the Malaysian Aviation Consumer Protection Code 2016.

Firefly will mount additional jet services from KLIA beginning Aug 19, with its first flight to Tawau, followed by a phased rollout to other domestic and regional destinations. This include flights to Kuching and Kota Kinabalu, which will commence on Aug 21, Singapore on Aug 22, Johor Bahru on Aug 23, Kota Bharu and Terengganu on Aug 30, and Sibu on Sept 3.

The airline will also raise its existing services from KLIA to Penang from two weekly services to six services per week beginning Aug 23, before increasing to 10 times weekly in November.

According to sources, Firefly’s jet operations have been losing money daily over the past year at Subang Airport, causing significant financial strain on MAG.

Data from the Companies Commission of Malaysia (SSM) showed that Firefly was loss-making from the financial year ended Dec 31, 2019 (FY2019) through FY2023. However, its net loss narrowed to RM19.17 million in FY2023, compared to RM32.15 million in FY2022, despite a 19.5% year-on-year increase in revenue to RM669.73 million.

“MAG was unable to integrate Firefly’s services with the rest of its network due to the airline’s point-to-point operating model and the considerable distance between Subang Airport and KLIA. As a result, the operation proved commercially unviable,” an industry expert told The Edge.

Sources also pointed to the structural limitations of Subang Airport. For one, the airport is restricted to just one jet movement per hour to prevent congestion in the terminal’s arrival and departure halls. Operations are also subject to a curfew from 6am to 10pm to manage noise pollution, due to the airport’s close proximity to residential areas. In addition, the apron only has six parking bays for single-aisle or narrow-body aircraft.

“These limitations create significant operational challenges for airlines. Slots for narrow-body aircraft are limited, and the airspace is tightly managed due to its proximity to KLIA,” said another aviation expert.

“On top of that, road congestion leading to and from the airport can be severe, and there’s currently no train link to the airport available,” he added.

During the recent media briefing, Mohd Izani noted that MAHB had spent RM22 million to upgrade Subang Airport’s passenger-handling capacity from 1.5 million to three million annually.

“I don’t think further upgrades are needed at the moment,” he said. “As you know, the government has capped approved jet operations at 15 slot pairs (each slot pair allows one flight arrival and one flight departure) per day, and we are maintaining that limit. I believe that reflects the government’s position — any increase beyond that may not sit well with local residents (living around Subang Airport).”