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No fare ceiling on domestic tickets during festive season for now
Published:  Nov 12, 2018 1:44 PM
Updated: 7:57 AM

PARLIAMENT | Domestic airlines have committed to increasing their flight capacities by 20 percent for seven days before festive seasons in an effort to keep fares down, according to the Transport Ministry.

"To discourage the increase in ticket prices during festive seasons, the government has received commitments from local airline companies to increase their flight capacities by 20 percent for seven days before Hari Raya Aidilfitri, Chinese New Year, Gawai Day and Keamatan Festival, especially on high-demand routes," Transport Minister Anthony Loke said in a written parliamentary reply.

Loke was responding to a question from Hasanuddin Mohd Yunus (Harapan-Hulu Langat) on Oct 29, who asked about the best method to ensure airline companies do not hike up prices during festive seasons.

However, the minister added the government would not set any price limitations to prevent companies from manipulating fares and increasing the average ticket price outside of these seasons.

"The government will continue to allow the ticket prices to be market-driven, where the airline companies will set fares by taking into consideration the demands of the market, the economic situation, and other factors, such as fuel prices and operation costs," he said.

The government, Loke added, will also receive the cooperation of airport and public transport operators to increase their operations at the airports during the seven-day periods.

He also advised the public to plan ahead and purchase their tickets earlier to get the best deals.

Additionally, the Malaysian Aviation Commission (Mavcom) has been instructed to monitor fares and study the impact of the flight capacity increases.

"If this method is not successful in resolving the issue of unreasonable price hikes during festival season, the ministry will reconsider the suggestion to set a ceiling price and price floor for domestic flight tickets," his reply read.

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