The newly announced price-hike in Malaysia Airlines' (MAS) domestic flights within the peninsula has met with a mixed response from local consumer groups.

President of Consumer Association of Penang (CAP) SM Mohamed Idris said today it is 'a double blow to the consumers' pocket' following the bailout of the flight company early this year using what he claimed was 'the public's money'.

"Although we cannot ascertain if there is a direct link between the increased air fare and the bailout, both cases have definitely further burdened the consumers," he said.

The New Straits Times today reported MAS's new domestic air fares, effective next month. The increased fares apply to domestic flights within the peninsula. Fares to Sabah and Sarawak remain unchanged.

The increase amounts to an average of 50 percent, ranging from RM26 to RM179 depending on routes and class type . An economy class ticket from Kuala Lumpur to Langkawi, currently priced at RM135, will now cost RM205, an increase of RM70.

In February, former MAS chairman Tajuddin Ramli was bailed out when the government paid a total of RM1.8 billion for the 29.09 percent of MAS shares which he held. The RM8 paid for each share was twice as much as the market price.

Critics have claimed that funds for the deal was partly taken from the Employees' Provident Fund (EPF) which manages workers' monthly contribution for their retirement. This has been denied by the government.

Steep climb

Mohamed Idris said the increase was steep although he agreed that a revision of the domestic air fares was necessary to ensure that the company remains economically viable.

"They should have taken a gradual approach, the revised fare is too drastic," he said.

President of the Federation of Malaysian Consumers' Association (Fomca) Prof Hamdan Adnan said 'there is nothing wrong' with the price-hike as consumers could resort to alternative modes of transport.

"Generally, we have very good roads in Malaysia. All the government has to do is to ensure that there will be no increase in the highway toll fees for a long time," he said.

Roads in poor condition should also be upgraded and maintained to provide consumers with comfort and safety when traveling, he added.

Hamdan also said the new air fares should be accompanied with an improvement in the quality of services.

The Domestic Trade and Consumers Affairs, when contacted, said MAS' domestic air fare increase was 'beyond the control of the ministry'.

"There are no provisions under the law for us to do anything about the new air fare unless there are elements of deceit where they advertise one price but sell the ticket at a more expensive rate," said an official, declining to be named.