By P PREM KUMAR & ALIFAH ZAINUDDIN / Pic By BERNAMA
THE government may reconsider plans to impose a ceiling price on domestic airfares during festive periods if the current interim plan fails.
The proposal to impose a limit on domestic flight charges during peak seasons was earlier dropped after a study by the Malaysian Aviation Commission (Mavcom) showed that the move would have an impact on the average price during non-peak seasons.
The government has instead opted for an interim agreement with local air carriers to offer more flights to meet the spike in demand during these key periods and prevent flight ticket rates from spiralling out of control.
Speaking at the Dewan Rakyat yesterday, Deputy Transport Minister Datuk Kamarudin Jaffar (picture) said the government has no intention to impose ceiling and floor prices during the interim period. However, he did not give a timeline of the provision.
He said the move will allow ticket prices to be market-driven and will be subjected to factors such as fuel prices, operational costs and the economic climate.
“The government will not impose ceiling and floor prices for domestic flight tickets to avoid any price manipulation by airline companies, where average prices are increased even during off-peak season.
“The companies have given their commitment to increase the number of domestic flights by at least 20% in high-demand routes for a seven-day period prior to selected festive holidays, namely Hari Raya Aidilfitri, Chinese New Year, Hari Gawai and Kaamatan Festival,” he said.
Kamarudin was responding to a question by Hulu Langat MP Hasanuddin Mohd Yunus who inquired on the most effective measure to ensure that airlines do not increase airfares during festive seasons.
Kamarudin said airlines are expected to operate night flights to cater to the higher number of commercial services throughout the period, while other support services such as airport operators, ground services, the Express Rail Link and taxis will also play a part to facilitate the extra movements.
“If the measures fail to control prices, then the government will reconsider implementing ceiling and floor prices,” he added.
Mavcom’s report showed that air ticket prices increased up to six times during the Chinese New Year period.
In the case of the Ipoh-Johor Baru route, it said the ticket prices went as high as RM1,073 from a base airfare of RM187 as demands spiked during the festive season.
In another example, the airfare for the Kota Baru-Kuching route doubled to RM471 from RM236 during the Hari Raya Aidilfitri period.
The new arrangement is expected to result in a reduction in flight ticket prices.
Meanwhile, Kamarudin said the government has no plans to grant targeted subsidies for flight tickets, but noted that flights to rural areas in Sabah and Sarawak have been subsidised.
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