Low-cost carrier Firefly, a subsidiary of Malaysia Airlines, has started commercial operations with ticket prices as low as $US2.60 ($3.19).
Its first passengers flew out of the island resort of Penang, officials said.
Firefly, Malaysia’s second low-cost airline after AirAsia, will use two 50-seater Fokker Friendship aircraft.
Initially, the airline will fly from its base in Penang to the Malaysian cities of Kota Baru, Kuala Terengganu, Kuantan and Langkawi. From April 13, the airline will also fly daily to the Thai resort islands of Phuket and Koh Samui.