KUALA LUMPUR, Jan 27 — The government’s subsidy initiative to stabilise the price of flight tickets during festive seasons over the past two years has proven effective, as excessive price hikes, especially for flights from Peninsular Malaysia to Sabah and Sarawak, have been successfully controlled.
Transport Minister Anthony Loke said the government’s intervention, by setting ceiling airfare prices, helps people, especially those working away from home, in returning to their hometowns without incurring high costs during peak demand periods.
This initiative is implemented for three days before the festive season, which is the period of highest demand, with the government covering the price difference through a subsidy scheme for airlines.
"So, by making these interventions in the last two years, we no longer hear that ticket prices have soared to over RM1,000 for the sector returning to Sabah and Sarawak," he said.
Loke was speaking at a media conference after launching Batik Air's 'Fixed Fares for Your Reunion' campaign for the Chinese New Year travel period today, including the announcement of fixed fare routes and increased flight capacity to accommodate the festive demand.
Also present at the event was Batik Air chief executive officer Datuk Chandran Rama Muthy.
Regarding fixed fares, he said that the initiative complements the government's policy of maintaining a ceiling airfare of RM499 before tax for all participating flights.
Some passengers pay up to RM580 or RM600 for flight tickets, including taxes, but the base fare is capped at RM499, and any tickets that should have been sold at a higher price are covered or subsidised by the government.
Loke added that implementing the ceiling price would have significant financial implications, with the government spending over RM20 million annually, so it would be applied only to one-way flights from the Peninsula to Sabah and Sarawak.
Flights from Sabah and Sarawak to the Peninsula are not subject to a ceiling price because the route does not have the same time pressure.
“Therefore, for the return sector to the Peninsula, they can plan their journey according to their convenience and cost," he said.
The government hopes the public understands that the purpose of the intervention is to stabilise prices and avoid complaints during every festive season.
Regarding flight demand during the festive season, Loke said flight service providers are also adding extra flights for the Johor Bahru-Sibu route, even though it is not a scheduled route.
He noted that demand for flights to Sibu remains high during festive seasons because the airport serves as the main gateway to central Sarawak, including Sarikei and Kapit.
