A pricing mechanism used by airlines and travel agents to fix airfares in Malaysia will be abolished from Nov 1, a travel body said today.

"With the abolition, travelers will be able to shop for lower fares, as airlines and travel agents will be free to determine the airfare depending on demand and supply," the Market Development Programme (MDP)-Malaysia said in a statement.

The Malaysian Association of Travel and Travel Agents (Matta), which is a partner to the MDP-Malaysia has backed the move.

MDP said Malaysia's move to a liberal and open skies policy, the proliferation of low cost airlines and the introduction of on-line booking facilities were among the factors that had led to the decision to abolish the mechanism introduced in 1983.

The decision was made by member airlines of the MDP-Malaysia at their general meeting on July 23, it said.

The MDP is a voluntary compliance programme involving 29 airlines. Over the years, it has ensured market stability and better returns.