MAB to follow Mavcom’s rules on airline ceiling rate

Meanwhile, the price of domestic air tickets by MASwings will be fixed under the mechanism

By LYDIA NATHAN / Pic By MUHD AMIN NAHARUL

Malaysia Airlines Bhd (MAB) will follow recommendations by the Malaysian Aviation Commission (Mavcom) on the domestic airfare ceiling price.

MAB told The Malaysian Reserve (TMR) that the company will adhere to any regulations set by authorities, as its priority as a national carrier is to connect Malaysians to the rest of the region.

“MAB is intent on better matching supply with demand, which is reflected not only in our schedules but our fares and full-service delivery as well. Nevertheless, MAB stands guided on recommendations by Mavcom,” MAB noted in an email response recently.

Last week, Transport Minister Anthony Loke had said a study on the airlines’ ceiling price is expected to be completed by the end of the month.

Loke added that the ceiling rate will include all airline carriers that fly within Malaysia, and the mechanism will be set to control prices not only during the festive period, but throughout the year as well.

He added that the price of domestic air tickets by wholly owned subsidiary of Malaysia Aviation Group Bhd, MASwings Sdn Bhd, will be fixed under the mechanism.

Meanwhile, MASwings when contacted said the airline has yet to be briefed, but stated that it will comply with the regulations.

“We operate under the government’s subsidies and we have yet to be briefed. So, nothing has been finalised yet. We are awaiting further information,” a spokesperson of MASwings told TMR.

MASwings has served the rural air services routes since October 2007, after taking over from Fly Asian Express Sdn Bhd — which is now known as AirAsia X Bhd.

The government currently bears the operating cost by way of subsidies and aircrafts rental payments.

A local daily had previously reported that the annual subsidy bill for the seven-year period up to 2024 is about RM190 million.

Malindo Airways Sdn Bhd declined to comment at press time, while low-cost carrier AirAsia Group Bhd said the ceiling price is more relevant to other airlines, refusing to divulge further on the matter.