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Firefly to launch jet operations in 1Q21

KLIA, 15 October 2020 – Malaysia Aviation Group (MAG) today announced the commencement of jetoperations for its subsidiary Firefly Airlines (Firefly) beginning first quarter of 2021. Firefly will beadding up to 10 narrow body jets to its fleet in phases, serving the domestic, ASEAN and Asia Pacificmarkets out of Penang International Airport.

Group Chief Executive Officer of MAG Captain Izham Ismail said, “Based on available forecasts,domestic and short haul travel will be most preferred in the current environment, hence it makescommercial sense for Firefly to supply this demand but from the northern region. This is in line with theGroup’s enhanced Long-Term Business Plan (LTBP 2.0) which has been realigned to suit the currentand future environment post COVID-19, with a focus on strengthening the revenue streams of eachsubsidiary.”

With this plan, Firefly will be complementing sister company, Malaysia Airlines (MAB), in serving theleisure market while diversifying its base connecting secondary cities in Malaysia to East Malaysia,Thailand, Indonesia and Singapore. It will leverage on available resources and talents from withinMAG, with the possibility of deploying the Boeing 737-800 aircraft from MAB. This gives MAB room tofocus on its network serving the premium market.

Chief Executive Officer of Firefly Philip See said, “The world has evolved so much since COVID-19, andas airlines we must embrace those changes and adapt to the market needs and wants. Firefly is readyto carry that challenge, as we see strong potential in this dual hub strategy, while maintaining ourturbo propeller service out of Subang Skypark, serving the mix of corporate and leisure travellers.”

With the new jet operations, Firefly will offer a flexible service concept – with product unbundling tosuit the leisure focused and price-sensitive customers, providing a more significant value proposition.Passengers will continue to enjoy the privileges and services like a premium carrier including acomplimentary 20kg checked baggage allowance as well as the opportunity to accrue and redeemEnrich points with an option to add other privileges such as seat selection and insurance coverage.

The setup of Firefly’s Penang hub jet operations requires minimal investment by MAG in 2021, withan expected increase in production, measured in Average Seat per Kilometre (ASK) by 36% over thenext five years.

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