SEPANG, June 24 — The government welcomes any move by local airlines to increase the size of their fleet as that would lead to more competitive airfares, said Transport Minister Anthony Loke.
This is because airfares have dynamic pricing and the government has no control over the pricing of air tickets, except for domestic travel during festive seasons in the country.
“We already have a policy during the festive season whereby there is a cap in terms of pricing, and the government subsidises it, but in terms of international travel, there is no such (subsidy) mechanism.
[caption id="attachment_322665" align="alignright" width="435"]
Transport Minister Anthony Loke speaks to the media after the collaboration deal signing between Yinson Holdings Bhd, RRJ Capital and Farosson on August 18, 2023. — Picture by BERNAMA[/caption]
“The way to resolve the issue of high airfares is to provide more supply... so when there is more competition, there will be more supply in the market, then definitely the market will adjust itself,” he said.
Loke was speaking to the press after witnessing the signing of a memorandum of understanding (MoU) between Batik Air and South Korean automobile manufacturer Kia to offer private terminal transfer service today.
The minister was responding to concerns that current high airfares are here to stay post-pandemic as travel booms.
“So I am pleased to hear that Batik Air is increasing its fleet. They are (adding) another 20 aircraft in the next six months, so by the end of this year, they will have 50 aircraft servicing the Malaysian market,” he said.
Batik Air signed an MoU with Kia for its new private terminal transfer service, designed exclusively for business class passengers.
The airline will enhance the travel experience for both its Business Class Promo and Flexi passengers by offering a premium transfer service between the Main Terminal Building and the Satellite Building of the Kuala Lumpur International Airport Terminal 1.
— Bernama
