(AFP) - For bold travellers prepared to fly in the shadow of the Sept 11 terror attacks in the United States, there are bargains aplenty in Malaysia as airfares tumble for the holiday season.

"Super value" tickets to destinations in Asia, Europe and the United States are in the offing, with discounts of between 20 and 40 percent after 25 airlines operating here suspended a program to regulate prices.

The airlines on Nov 12 halted their Market Development Programme (MDP) to cope with the twin blows to the air travel industry of the global economic slowdown and the US tragedy.

The MDP was enforced in 1983 to regulate and stabilise fares but the carriers found the pact stifling their ability to stay competitive amid the economic gloom.

Desperate bid

Malaysia Airlines heads the list of carriers that have slashed prices in a desperate bid to boost sales and arrest any further losses.

Airfares to London - a popular destination - have dipped 32 percent or RM1,000 to RM2,100.

A ticket to Taipei now costs only RM848 ringgit, down 36 percent from RM1,333 before.

Fares to Los Angeles plunged 22 percent to RM1,888 while those to Hong Kong, Jakarta, Bangkok, Japan and India have also dropped between 20 and 30 percent.

"It is not going to immediately bring back customers but it is a strong impetus towards driving people back to the sky and renewing confidence in flying and tourism in general," said Jeff Liew, corporate affairs manager at leading travel agent Reliance.

"Of course profit margins will be slightly reduced but the good news for agents is that we can make it back in numbers by having more people holidaying."

The discounted tickets have certainly played a role in luring Malaysians - known for their penchant for bargains - to travel.

"Our phones have been ringing non-stop since we advertised about the bargain fares. Response has been extremely good," said Hazel Sian, tour manager at Apple Tour and Travels.

"It's coming to three months after Sept 11. I believe most people have cast aside their fear of flying."

Cold comfort

But the move offered only cold comfort for some agents, who did not foresee any significant boost to sales.

"There are way too many restrictions to make a meaningful impact," said a ticketing agent at a small tour company.

"Tickets must be issued three days after booking, no changes can be made to the flights and no waiting list allowed. Seats are also always limited. It's just a gimmick to attract holidaymakers."

She said other airlines have not been as forthright as Malaysia Airlines in cutting prices. "Everybody is eyeing each other. They cannot afford to undercut any more because yield is too low."

Reliance's Liew said it was still too early to assess the impact of the cheap tickets on the travel industry, especially as the year-end has traditionally been a busy period.

"The immediate trend in the past few weeks has been encouraging. Certainly bookings have come in and that's a good sign, although this is partly due to the holiday season," he said.

"People have definitely cast aside their fear of flying for now but I think they are still concerned about long-haul travel and to particular places such as the US."

Liew said his company now focuses on regional travel, especially to destinations such as China, Japan and Korea as well as domestic tourism to increase sales.

"Business is slower compared to last year because of the impact of the terrorist attacks but in the past month or so, we have seen sales picking up," he added.

Officials at the Kuala Lumpur International Airport said passenger traffic last month fell nine percent from September to 1.115 million, a further deteriotation from a four percent fall in September.

Analysts said they did not expect a price war among airlines. "I don't foresee any severe price cutting prevailing. All the carriers are in a Catch-22 situation," said Victor Wan, senior analyst at Mercury Securities.

"Most are in a financial predicament and yields are already low. If loads don't pick up significantly, they're going to be at the losing end."