KUALA LUMPUR, July 1 — Malaysia Airlines Bhd (MAB) will move some of its operations to KLIA2 in a bid to cut costs and make fares cheaper, the national carrier’s newly-appointed chief executive Peter Bellew said on his first day at work today.

The Irish-born former Ryanair executive said airport costs will be among the immediate focus of his plan to make MAB profitable, starting with cost efficiency.

“Saving money, does not mean compromising on safety or on our products and services. It simply means we need to increase productivity and efficiency, invest in modern technology, enter into mutually beneficial partnerships besides identifying and mitigating risks early,” he said in a statement.

“Airport costs will be an immediate focus and we are planning to operate some leisure flights from Kuala Lumpur KLIA2 in 2017.”

The move is expected to save MAB RM1,975,380 or USD500,000 per annum, the savings of which can be translated into lower fares.

“We will pass on these savings to customers with lower fares. Each and every cost of everything we do will be minutely checked daily without changing any quality,” he added.

Bellew replaced Christoph Mueller — who resigned after serving the carrier for only year over personal reasons — as CEO starting today.

Prior to the promotion, he was chief operating officer of MAB. He is also an executive director at Malaysia Aviation Group Berhad, MAB’s parent company.

In his first statement since his appointment, Bellew said MAB will set up a new website, mobile app, trade reservations system and airport equipment in the next 12 months, which is part of the carrier’s bid to enhance the digital experience for customers.

He also said MAB needed to double its efforts to meet market demand, noting that the company was already on the right trajectory as seen in its last quarterly performance.

“We need to raise the bar to ensure that our commitment towards meeting customers’ expectations is met by all staff across the Group,” he said.

Mueller in February said MAB recorded profits, the first positive monthly results in years. But no details were given.

Just last year, the company lost RM2 billion amid a twin tragedy that struck two of its planes and killed hundreds in the same year.

The carrier has already been saddled with losses of up to US$1 billion since 2011.

MAS’s sole shareholder Khazanah Bhd later brought Mueller in May last year to head a US$1.5 billion turnaround project that included cutting 6,000 jobs and axing unprofitable routes.

Both Mueller and Bellew’s appointments by Khazanah have met with opposition from Malay lobby groups which insisted on local replacements.

Bellew said today he would “work to ensure we have a large group of Malaysian nationals trained in the next three years who are capable of leading the airline through 2030.”