No ceiling price for air tickets during festive periods: Loke

KUALA LUMPUR: There will be no ceiling price for airline tickets during the festive season but airlines have asked to increase their capacity by 20% during that period, said Transport Minister Anthony Loke.
He said Malaysia Airlines, AirAsia and Malindo, will provide more flights during this period.
He added that it was decided that the increased capacity should be for Chinese New Year (CNY), Hari Raya, Gawai and Kaamatan.
"The sales of tickets for the Chinese New Year will start on Oct 1 and the public should buy their tickets early and not wait until the last minute," Loke said, adding that it was not right for passengers to pay high prices during this period.
He added that the trial period for the increased capacity will start in October for next year's CNY and February and March for Hari Raya, Gawai and Kaamatan.
Loke said the seven routes chosen were - KL to Sibu, KL to Kota Kinabalu, KL to Kuching, Ipoh to JB, JB to Sibu, JB to Kuching and JB to Kota Kinabalu.
He cited the example for high prices during CNY on the JB to Ipoh route, the base airfare was about RM200 but during CNY it had exceeded RM1,000.
Speaking during a press conference at the Malaysian Aviation Commission (Mavcom) headquarters yesterday, he said a study by Mavcom shows that domestic airfares have been declining from RM251 in January 2011 to RM214 in May 2018 and the ministry did not want to disturb this trend but during the festive period it could spike to as much as 600%.
"Ceiling price does not work and it is not good for passengers as the average price will go up. In Indonesia, airfare has not dropped despite the introduction of a ceiling price," Loke said.
Meanwhile he said Very Important Persons (VIPs) during the previous Barisan Nasional have been using the special lanes to move in and out of the country without proper checks.
Loke said security screening at the VIP lanes will be stepped up after investigations by the Malaysian Anti-Corruption Commission (MACC) revealed that 1MDB money may have been moved through KLIA.
He said this was discovered following the arrest of former Malaysian External Investigation Organisation (MEIO) director-general Datuk Hasanah Abdul Hamid last week.
"The ministry is looking at how to enhance and tighten airport security. I have ordered Malaysia Airport Holdings Berhad (MAHB) to review their Standard Operating Procedures for VIP lanes.
"I have asked them to tighten up security and have it to be more regulated, even ministry staff could use the VIP lanes which allowed them to escape the usual security scanners and this will no longer be allowed, it will be strictly controlled," Loke said.