The sky IS the limit

TRANSPORT Ministry will not impose a ceiling price for domestic flights to control price fluctuations in the run-up to the holiday season. MAS, Malindo and AirAsia agree to increase the number of flights prior to four major festive holidays.

KUALA LUMPUR: The Transport Ministry will not impose a ceiling price for domestic flights to curb price fluctuations before festive holidays.

Instead, the three major airline companies — Malaysia Airlines Bhd (MAS), Malindo Air and AirAsia — have agreed to increase flights prior to the four major festive holidays.

These festive holidays are the Chinese New Year, Hari Raya Aidilfitri, Sarawak’s Gawai festival and Sabah’s Kaamatan festival.

Transport Minister Anthony Loke said the ministry arrived at the decision following a study by the Malaysian Aviation Commission (Mavcom).

“If the (ceiling price) is implemented, it would affect the average price on regular days (nonfestive periods).

“If there is a ceiling price, the (airline) companies will average their fares on normal days.

“This is based on supply and demand. When demand is high, prices will increase.

“Airfares (for domestic flights) have been on a downtrend and we do not wish to reverse the trend.

“Not many countries have imposed ceiling prices, except for Indonesia, and its prices did not come down,” he said at a press conference at Mavcom’s office here yesterday.

The press conference touched on the findings of the Mavcom study, on whether price fluctuations occurred before festive holidays and on steps to tackle the issue.

Loke said the study had discovered that prices tend to increase before festive holidays.

He said they could increase between three and five times, such as 5.7 times for flights from Ipoh, Perak, to Johor Baru, Johor.

He said following a discussion between the ministry and the three airline companies, the latter had agreed to offer more flights before the four major festive holidays.

“AirAsia, MAS and Malindo Air have agreed to offer more flights seven days before the festive holidays.

“More seats will be up for sale to prevent a sharp increase in (ticket) prices.

“The airline companies will also increase their flights by 20 per cent,” he said, adding that the airline companies would offer an additional seven routes for Chinese New Year next year.

He said the three airlines would start offering tickets for Chinese New Year on Oct 1.

He said the airlines would open bookings at least two to three months before the festive seasons.