Firefly: Malaysia Airlines and Airline Industry

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2.0 Background to the organization

Firefly is the wholly-owned subsidiary by the Malaysia Airline System Berhad (MAS). Firefly is launched on April 3rd 2007 as well as it is the Malaysia’s first community airline that operated under FlyFirefly Sdn Bhd. the Malaysia’s first community airline also known as a new Malaysian no-frills airline. The name of Firefly is come from the characteristics of agility, brilliance, charm, and fun. Firefly offers a full service point-to-point carrier. The head office of Firefly is located at Sultan Abdul Aziz Shah Airport in Subang, Selangor. The first flight of the Firefly was from Subang Sultan Abdul Aziz Shah Airport to Penang International Airport, on the 2nd April 2007. Besides Airline of Air Asia Berhad, Firefly is another low-cost airliner. It mean that Firefly has the separate management compare with MAS even though it is wholly-owned subsidiary by MAS. Firefly is operated in two hubs that are located at Sultan Abdul Aziz Shah Airport, Subang, Selangor and Penang International Airport. Penang is the second big hub after the Kuala Lumpur. The aim of the Firefly is to bring communities closer by overcoming geographical constraints, link the world to the communities we serve, and contribute to the economy of the communities by bringing trade and tourism. Firefly not only wants to bring together the community in Malaysia but also for travelers to visit both of our neighboring countries and throughout the region. Become the Malaysia’s first community airline, Firefly most emphasis on the safety and comfort it its flying experience. However, Firefly try their best to provide the best service to their customers such as getting their customers to the destination in the shorter time, cost effective and make flying Firefly as a fun.

3.0 Situation analysis
Positive or negative of general environment in the airline industry will significant affect the growth of the Firefly Airline. In order to growth the position and hit the target of Firefly, it is important to understand the current situation of external factor that can influence the Firefly Airline. 3.1General Environment

3.1.1 Political
Fully Deregulation of the airline since December 2008 allow the member state to fly across other’s territory, make fuelling stop as well as pick up the passenger in order to complete their journey to reach their destination. This deregulation brings the benefit such as enhance the customer’s choice and increase the competition. For most time, the political stability and government decision will directly affect the direction and decision of the company. For example, the Malaysian government policy to support and develop the Low Cost Travel sector (Bernama 2006) was good news well for Firefly because Firefly applied the strategies of low cost carrier. Another example is Firefly took over the service rural air service in year 2007 announced by Transport Minister Datuk Seri Chan Kong Choy (The star 2007). Datuk Seri Chan Kong Choy announced that the rural air service was the responsibility of the government and they will continue to subsidies the cost for the operation of the rural air service to maintain the low-fare structure. Apart from that, On the 24 March 2010, the state government of Perak signed a contract for strategies collaboration with Firefly to promote tourism and foreign investment in their state. The decision of the state government brings good news to Firefly. Though this collaboration, Firefly can enhance their reputation and increase their profit. Ps: if too much words, can delete it or add to opportunity.

3.1.2 Economic
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Firure1: Traffic Update for Association of Asia Pacific Airlines (AAPA) Member Airlines Source: AAPA (2010).
From the figure 1, we can clearly see that the increase 10.7% in the passengers by November 2010 compared with November 2009. The main reason for the increase in passengers is Asia Pacific carrier...
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