Market sets flight prices, not government

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Saripuddin (second left) speaks to the media after the luncheon; together with (left to right) Karen, Raja, Jaffar and Pushpalatha.

KUCHING: Airfares are set based on market demand and supply.

The Malaysian Aviation Commission (MAVCOM) chairman Datuk Seri Saripuddin Kasim noted concerns about high ticket prices to Sabah and Sarawak during the Kaamatan and Gawai festivals.

To address this, Saripuddin said, flights from Peninsular Malaysia to Sabah and Sarawak are now capped at RM300, but this doesn’t include fees and taxes.

Additionally, the Transport Ministry introduced the FLYsiswa scheme. It provides students with a RM300 voucher to help with flight costs. This voucher can be used for single or multiple flights until the end of December, and for travel until the end of March next year.

“These steps by the government aim to lower flight prices. We want to make it easier for people, especially students, to go home during holidays.

“While MAVCOM can’t dictate flight prices, we promote fair competition in the aviation sector. We aim to improve flight connections and protect air travellers,” he told reporters during media luncheon at Round Tower cafe today (Sept 12).

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On another note, Saripuddin explained that MAVCOM manages the Public Service Obligation (PSO) schemes but, the main policy decisions come from the Transport Ministry.

For context, there’s a PSO agreement with the government from January 2019. Under this, MASwings runs 30 Rural Air Services (RAS) routes in Sarawak, from 2019 to 2024.

Saripuddin said, “When this agreement ends in 2024, we’ll review these routes. We’re also considering two new short take-off and landing airports, but the locations are still under discussion.”

The federal government covers the RAS costs through subsidies and payments for aircraft leasing.

Also present were MAVCOM chief operating officer (COO)  Raja Azmi Raja Nazuddin, Director of Aviation Development Jaffar Derus Ahmad, Director of Consumer and Public Affairs Pushpalatha Subramaniam, and Senior Manager of Aviation Development Karen Leiking.

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