(AFP) The government today gave national carrier Malaysia Airlines the go ahead to increase fares for its West Malaysian routes.

Transport Minister Ling Liong Sik was quoted by Bernama news agency as saying that the cabinet in its weekly meeting approved a 50.8 percent hike to 49 sen per kilometre from 32.5 sen previously.

The old rate remains for fares to Sabah and Sarawak on Borneo island, he added.

Ling said it was up to the airline to decide when to impose the new rates.

"The carrier needs time to make the fare adjustments," he said.

Ling said Malaysia Airlines had requested a hike two months ago on the back of financial losses on domestic services.

The national airline loses RM320 million a year on domestic routes.

Renationalised

It has reported multi-million dollar losses on all operations for four straight years and has borrowings totalling RM10.34 billion.

In February the government renationalised Malaysia Airlines through a controversial buyback of a 29 percent stake from Naluri Bhd for RM1.79 billion - more than twice the shares' market value.

The national carrier has embarked on a major programme to return to profitability.

Ling said the government hoped that Malaysia Airlines would be able to turn around with the fare increase.

"The government hopes they will not post huge losses again," he said.