KUALA LUMPUR - FIREFLY, the budget wing of Malaysia Airlines, on Tuesday removed fuel surcharges on all its flights and introduced low off-peak fares to woo travelers amid the global economic slump.

Firefly's move mirrors that of its rival, AirAsia, which last month became the first carrier in the world to abolish fuel surcharges amid the recent steep drop in fuel prices.

From its peak of nearly US$150 (S$221) a barrel in mid-July, crude prices have tumbled to around US$44 a barrel amid fears that slower global growth will crimp demand.

Managing Director Eddy Leong said Firefly was able to pass on fuel savings to its customers following lower oil prices as well as increased efficiency in fuel usage with its new fleet of ATR72-500 turboprop aircraft.

Firefly has five ATR aircraft at present and will get five more new planes next year, which will help reduce its operating cost by almost 20 per cent, he said in a statement.

At the same time, Firefly will also offer discounts of up to 80 per cent or even zero fares for off peak season, he said. There will be attractive deals for high peak season, and Firefly will not go beyond their normal fare structure to encourage people to travel, he said.

'This initiative acknowledges the current economic situation and the need to provide more affordable and transparent air fares for business and leisure travelers. The benefits shared with passengers will make traveling within one's mean in today's economical downturn,' Mr Leong said.

Launched in April 2007, Firefly currently flies to several Malaysian cities, the Thai resort islands of Phuket and Koh Samui and to Banda Aceh, Medan and Pekanbaru in Indonesia. -- AP