KUALA LUMPUR: Malaysia’s newest airline Malindo Air expects to fly 1.5 million passengers by year-end through its combined operations at Kuala Lumpur International Airport (KLIA) and the Subang SkyPark Terminal.

The two-month old airline is expected to commence operations at Subang SkyPark on June 3, using up to six ATR 72-600 turbo-prop aircraft by December to serve routes in Peninsular Malaysia.

Malindo Air has so far received a single ATR 72-600, which will ply between Penang, Johor Baru and Kota Baru from next month. The new aircraft has 72 seats with a 2-2 configuration in a single class. The company is charging a one-way, all-in-fare from RM69.

Malindo Airways Sdn Bhd CEO Chandran Rama Muthy said the Subang SkyPark operations will complement the airline’s jet operations at KLIA, currently served by two Boeing 737-900ER. The two jets are flying between Kota Kinabalu and Kuching, and will add Sibu, Miri and Tawau by next month.  

“The whole idea is to put Malaysia as a transit hub within the Southeast Asian region. As an airline committed to serve the people, we will continue to expand our operations and grow our network to serve more guests and destinations,” Chandran told reporters after the arrival of the first ATR 72-600 aircraft at the Airod hangar yesterday.

He said the hybrid airline has achieved a load factor of 80% since it began operations two months ago, and the two Boeing 737-900ER have ferried 100,000 passengers to date.

Malindo Air, a joint venture between Malaysia’s Nadi Sdn Bhd and Indonesia’s PT Lion group, will expand its fleet to at least 12 new aircraft by December and 100 aircraft by 2028. The existing two Boeing 737-900ER aircraft have a two-class configuration, comprising 12 business class and 168 economy class seats.

Chandran said Malindo Air has received approvals from the Malaysian authorities to begin charter flights to India.

“We are now working closely with the Indian authorities and we expect to get clearance from them by the end of May. From then on, we will announce sales for our Indian flights,” he said.

Chandran said flights to India would likely start within two months after receiving clearance from the Indian authorities. Malindo Air is looking at five destinations in India, and has received approvals to fly to New Delhi, Bombay and Dakar.

Chandran also said Malindo Air is in talks on destinations with China and Indonesia.

On funds for operations and expansion plans, he said Malindo Air’s cash position is very strong as the airline has a good parent company and partners.

This article first appeared in The Edge Financial Daily, on May 21, 2013.