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MAS passenger load down, revenue up after fares hike

Deputy Transport Minister Ramli Ngah Talib defended the governments decision to allow Malaysian Airlines (MAS) to increase its domestic fares but clarified there would be no more review of the fares for the time being.

He said since the fares were increased by 51.8 percent on Aug 8 last year, MAS had seen passenger load drop by 17 percent but revenue increase by 11 percent from the year before.

"This helped us cover losses of about RM1 million per day, as MAS still goes to destinations which are not profitable. But we have to carry on with those routes because it is our responsibility to do so, he said.

Ramli was replying to a question by Dr Wan Azizah Wan Ismail (Keadilan-Permatang Pauh) on the implication of the price hike in terms of passenger load, revenue and performance of MAS.

Wan Azizah also questioned whether there were any plans to review the fares.

Ramli said MAS was taking other steps to enhance its revenue though he did not spell out the details. He said the government has no immediate plans to review the rates.

Mohd Ali Hassan (BN-Terbau) also asked about the progress of police investigations into the alleged malpractice by the airlines previous management.

He voiced his concern that the matter would not be brought to court if investigations revealed technical problems to be the cause.

"It is best to set up a special committee. Why should the rakyat (public) suffer when the management is all settled?" he queried.

Ramli replied that the government was not planning to set up a special committee as the government agency investigating the matter was capable of doing it.

No special committee

Meanwhile, parliamentary opposition leader Fadzil Noor described the on-going MAS investigation as a "witch hunt" in his speech today, saying many of those small fry being investigated are being made scapegoats.

"Those who are wrong must be punished, including the ministry officials involved," he said.

"We also hope this mismanagement will not be repeated in other companies in view of the many privatisation exercises taking place which may mean many more companies will be bailed out," he added.

Fadzil also questioned the whereabouts of former finance minister Daim Zainuddin, who had advised the government to buy shares from former MAS chief executive officer Tajudin Ramli at twice the market rate.

"Will the investigation also include Daim? This is important because the business community and rakyat are aware of Daim's involvement as some businessmen were his proxies," he said.

Fadzil maintained that citizens had the right to ask whether Daim or the party he represents is connected to the conspiracy to use the rakyat 's money to serve the interests of a group of people or certain parties.

Daim, who is also BN MP for Merbok, was in Parliament today for about an hour and had left when Fadzil made those comments about him.

The ex-minister did not make any comments about the beleaguered airline though he said a curt "hi" to reporters at the lobby as he was leaving.


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