Malaysia Airlines cleared for rural routes
Wednesday, May 30, 2007
THE government has given the green light to Malaysia Airlines (MAS) to set up another subsidiary for the rural air services (RAS) in Sabah and Sarawak from October 1.
Managing Director and Chief Executive Idris Jala said yesterday there is a need for a new subsidiary due to Firefly's inability to do interlining (transfer passengers, baggage and freight from one carrier to another using only one ticket or check-in procedure) for these routes.
MAS launched Firefly, Malaysia's first community airline, on March 14 to tap customers travelling within the triangle formed by northern Indonesia and Malaysia and southern Thailand.
"Firefly cannot do interlining just like Fly Asian Xpress (FAX) cannot do interlining. That is why it is important to put in place this subsidiary," he told reporters here after announcing the company's first quarter performance.
FAX was created to take over RAS from MAS as a corollary to the national carrier's restructuring plan. It has been operating RAS since last August, and the government agreed last April to its request to pull out from RAS so it can focus on operating long-haul low-cost flights.
Idris said the government approved the new subsidiary two weeks ago after it agreed to two conditions set by MAS. One is that it receives a full government subsidy, similar to that received by FAX.
The other is that the government and FAX return the aircraft being used in Sarawak and Sabah in full operational mode.
He said the new company was created so that its profit and loss account is transparent and "there is full interlining which has been a concern in Sabah and Sarawak".
Interlining in Malaysia involves linking with MAS' ticketing and reservations system Kommas, and other airlines incur a cost each time this system is used to connect a passenger to a MAS flight.
MAS is expected to begin taking over RAS in Sabah and Sarawak from FAX next month.
Miri-based FAX, owned by some directors of AirAsia, operates 22 routes and 104 flights daily in Sabah and Sarawak.
The government regards RAS as its responsibility and a type of social service, which is why it subsidises the service for about RM60 million a year.
Bernama
Managing Director and Chief Executive Idris Jala said yesterday there is a need for a new subsidiary due to Firefly's inability to do interlining (transfer passengers, baggage and freight from one carrier to another using only one ticket or check-in procedure) for these routes.
MAS launched Firefly, Malaysia's first community airline, on March 14 to tap customers travelling within the triangle formed by northern Indonesia and Malaysia and southern Thailand.
"Firefly cannot do interlining just like Fly Asian Xpress (FAX) cannot do interlining. That is why it is important to put in place this subsidiary," he told reporters here after announcing the company's first quarter performance.
FAX was created to take over RAS from MAS as a corollary to the national carrier's restructuring plan. It has been operating RAS since last August, and the government agreed last April to its request to pull out from RAS so it can focus on operating long-haul low-cost flights.
Idris said the government approved the new subsidiary two weeks ago after it agreed to two conditions set by MAS. One is that it receives a full government subsidy, similar to that received by FAX.
The other is that the government and FAX return the aircraft being used in Sarawak and Sabah in full operational mode.
He said the new company was created so that its profit and loss account is transparent and "there is full interlining which has been a concern in Sabah and Sarawak".
Interlining in Malaysia involves linking with MAS' ticketing and reservations system Kommas, and other airlines incur a cost each time this system is used to connect a passenger to a MAS flight.
MAS is expected to begin taking over RAS in Sabah and Sarawak from FAX next month.
Miri-based FAX, owned by some directors of AirAsia, operates 22 routes and 104 flights daily in Sabah and Sarawak.
The government regards RAS as its responsibility and a type of social service, which is why it subsidises the service for about RM60 million a year.
Bernama
Business Besides Oil
