PETALING JAYA: A transport expert has called on the government to set a ceiling price for flight tickets between West and East Malaysia, apart from allowing Sarawak to establish a boutique airline to reduce airfares.
Transport consultant Rosli Azad Khan said Indonesia had implemented and managed this policy for years for its domestic routes and airlines had complied with it.
“Malaysia should have the political will to implement this ceiling price policy. After all, Malaysia Airlines is owned by the government, via Khazanah Nasional Bhd. So it should be easy to implement.
“Once Malaysia Airlines operates with a ceiling price for these routes, other airlines must follow. It must be clearly stated in their air services licence, similar to bus fares, which are currently regulated,” he told FMT.
He said airlines should treat flights on these domestic routes as a “public service” and that they should not be allowed to profit from these flights.
Commenting on Sarawak’s plan to set up its own boutique airline, Rosli said that if it was approved, the airline would definitely offer low fares at the start to attract customers.
However, he said, it would have no choice but to charge the market rate for airfares over time if the state wanted to recover its investment.
“Subsiding airlines’ operations is expensive, as shown by the government’s multiple bailouts of Malaysia Airlines, which is still losing money despite all the cuts in destinations and services.
“The main issue with connectivity between the peninsula and East Malaysia is that all air connections are centred in Kuala Lumpur or from Kuala Lumpur, which is not good enough.
“More direct connections should be made between towns and cities in the region,” he said.
In 2021, Sarawak premier Abang Johari Openg said the state was planning to establish an airline to be operated by Hornbill Skyways, the state-owned domestic airline company.
Abang Johari also said a new airline would help stabilise airfares, which are regarded as high.
Three days ago, Prime Minister Anwar Ibrahim said he agreed with Sarawak’s plan, adding that the airline could ease the cost of airfares between the peninsula and Sarawak and Sabah.
Former Land Public Transport Commission (SPAD) official Wan Agyl Wan Hassan urged Putrajaya and Sarawak to set up their own committees to study the market demand and competition for flights to and from East Malaysia.
He said the Sarawak-owned airline could service underserved routes that were not substantially covered by existing airlines, differentiating itself through tailored services and exclusive routes.
Citing East Malaysia’s connectivity issues, he said the proposed airline should focus on improving accessibility to rural locations and providing efficient connections to main hubs.
“This will help in bridging the connection gap and promoting regional economic growth.”
He also said the government should explore the possibility of setting a price ceiling for the airfares, though there must be an assessment on how this would affect competition, the airlines’ finances, and overall market efficiency.
“Striking a balance between affordability and sustainability is critical for the long-term viability of Malaysia’s aviation industry,” he said.
Asked if Putrajaya should open up the domestic market to international airlines, Wan Agyl said this could have a detrimental effect on domestic carriers, jeopardising their financial stability and market dominance.
He maintained that it was important to protect the interests of domestic carriers and preserve control over the domestic aviation market. - FMT
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