Berjaya Air charts expansion course for strategy over scale

Berjaya Air is also avoiding the obvious trap of flying into congested, high-cost primary airports. — Photo: Berjaya Air website

BERJAYA Air’s planned 2026 regional scheduled flights are a notable re-entry into regular commercial flying.

The airline, which is part of Berjaya Land Bhd, used to operate scheduled domestic and regional routes but later shifted toward charter-focused segments.

Its decision to restart scheduled commercial flights from Feb 14, 2026 is seen as less an aviation play than a strategic extension of Berjaya Land’s broader tourism and property ecosystem.

The airline will launch five regional routes to Koh Samui, Phu Quoc, Medan, Pekanbaru and Batam, marking a shift from its traditional focus on niche resort services such as Redang.

The expansion appears modest, but it is grounded in two advantages Berjaya Air already understands well: turboprop economics and operating out of Subang Airport.

Turboprops like the ATR 72-600 – two of which were ordered in 2023 at about US$28mil each – are well suited for short-haul routes.

They are fuel-efficient, incur lower airport charges and can profitably serve smaller markets that jets struggle to sustain.

Subang, meanwhile, offers a convenience advantage over Kuala Lumpur International Airport, particularly for leisure travellers and time-sensitive passengers.

Berjaya Air is also avoiding the obvious trap of flying into congested, high-cost primary airports.

By targeting leisure-heavy and secondary markets near major Asean cities, the airline sidesteps intense fare competition while also offering differentiated access, with Malaysia Aviation Group Bhd’s turboprop operator Firefly Airlines as its biggest rival.

The bigger question is profitability. On a standalone basis, it remains unclear whether this initial expansion is sufficient to turn Berjaya Air into a profitable airline.

Its revenue for the current year fell to RM3.46mil, though tighter cost controls reduced operating losses to RM1.01mil.

But profitability may not be the right lens. Berjaya Land could rationally tolerate a modest operating loss at the airline level if direct air access lifts hotel occupancy, supports room rates and enhances the appeal of its resort and real estate assets.

In that context, Berjaya Air functions more as strategic infrastructure than a conventional profit centre.

The cautious rollout, with the second ATR 72-600 only arriving in October 2026 and further fleet growth contingent on demand, limits downside risk.

The expansion is unlikely to move near-term earnings, but it adds optionality.

Berjaya Air will remain a small player. However, if deployed carefully, a handful of turboprops flying the right routes could deliver bigger value to the wider Berjaya Group.