KOTA KINABALU (April 17): The Malaysian Association of Tour And Travel Agents (Matta) has suggested that airfares for domestic flights between peninsular Malaysia and East Malaysia be capped at the lowest acceptable level especially during peak and festive seasons.
Its president Datuk Tan Kok Liang said since domestic airfares were regulated by the Transport Ministry in the past, it is clear that the ministry has failed to address this issue adequately despite complaints over the last 10 years.
“Since air travel between peninsular Malaysia and East Malaysia is considered an essential service to many Malaysians, higher airfares will not only affect business activities and the cost of air cargo, it will also be a main challenge towards attracting tourists to Sabah and Sarawak,” he said in a press statement today.
The state government of East Malaysia states have recently expressed concerns over the latest hikes in airfares during the forthcoming Aidilfitri festive season.
Sabah Chief Minister Datuk Seri Panglima Hajiji Noor had urged the federal government through the Transport Ministry to look into reducing airfares for domestic flights, while the Sarawak government was reported to be mulling to start its own state airline to reduce airfares and bring in more tourists.
Tan said the multiplier effects on tourism spending and its effect on the entire East Malaysian economy should influence legislators to leverage on the demand for reasonable pricing on airfare and to make favourable decisions towards the benefit of consumers.
Meanwhile, Matta urged consumers to purchase their air tickets well in advance to avoid paying exorbitant prices for last-minute purchases.
“Whilst we recognise the airlines’ position in maximising profits and the practice of dynamic pricing to remain commercially viable, we do hope for a more sympathetic approach towards domestic flight pricing,” he said.
Tan stressed that it is not simply about putting more planes in the air during peak season, but rather it is about a structural change in business models, pricing policies and appropriate government intervention.
Local airlines, he said, are in severe financial distress due to the Covid-19 pandemic.
“Towards that, the government should provide subsidies, incentives to local airlines and tax rebates to consumers to help make domestic airfares more affordable. Only through government intervention will the allegations of ridiculously high airfares or unbelievably low prices come to an end.
“Foreign tourist arrivals to Malaysia for 2022 is expected to reach only 20 per cent of pre-pandemic levels and most tourism players are still dependent on domestic travel to stay afloat. Attractive and affordable airfares will certainly boost domestic travel and stimulate the local economy,” Tan said. — Borneo Post
