New airline to boost passenger traffic at Penang airport

The current under-capacity of the Penang International Airport in Bayan Lepas is set to change this year, with the entry of a new local airline.

It is learnt that the airline, which may be a subsidiary of Malaysia Airlines (MAS) and called "FireFly", is currently awaiting its air services permit from the authorities and could be launched as early as this month. Among others, the airline is required to convince the approving authorities of its customer service and safety capabilities, along with the number of personnel available to manage its operations. A source told the Business Times that the Penang airport, designed to accommodate five million passengers per year, was operating below its capacity at the moment. "Last year, only three million passengers used the airport so there is ample room for more," the source said. MAS has confirmed that it is planning to set up a new domestic and regional operation to service the premium travel market, using the Penang airport as its base. Codenamed "Project Firefly", MAS is reported to use Penang as a hub to service holiday destinations like Langkawi, Phuket and Medan, along with local destinations like Kota Baru and Kuala Terengganu. Ahead of the new airline's entry, works are already underway to increase the number of check-in counters at the airport. "There are currently 32 such counters but these have proven to be inadequate, so works have started for another 25-32 additional counters via a southwards expansion of the terminal building, the source said. Meanwhile, it is also learnt that Penang's new low-cost carrier terminal is likely to be sited north of the existing passenger terminal building. Chief Minister Tan Sri Dr Koh Tsu Koon announced last month that the Penang Government is in talks with Malaysia Airports Holding Bhd and the Department of Civil Aviation on land for a budget terminal in Bayan Lepas. It is learnt that AirAsia has asked the State Government to donate the land. The budget airline is also believed to be asking for rights to be the licensed operator to keep costs low for its passengers.

Sources:
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