The government’s subsidy scheme has successfully controlled excessive airfare hikes for flights to Sabah and Sarawak during peak festive travel, capping base fares at RM499.
KUALA LUMPUR: A government subsidy initiative has effectively stabilised flight ticket prices during festive seasons over the past two years.
Transport Minister Anthony Loke said the intervention, which sets ceiling airfare prices, helps people return home without incurring high costs during peak demand.
This initiative is implemented for the three days before a festive season, with the government covering the price difference 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 spoke at a press conference after launching Batik Air’s ‘Fixed Fares for Your Reunion’ campaign for Chinese New Year travel.
The campaign includes fixed fare routes and increased flight capacity to accommodate festive demand.
Regarding fixed fares, Loke said the initiative complements the government’s policy of maintaining a ceiling airfare of RM499 before tax.
He noted some passengers pay up to RM600 including taxes, but the base fare is capped at RM499 with the government subsidising the difference.
The implementation of the ceiling price has significant financial implications.
The government spends over RM20 million annually on the subsidy, which applies only to one-way flights from the Peninsula to Sabah and Sarawak.
Flights from East Malaysia to the Peninsula are not subject to the ceiling price as the route lacks 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.
Loke said the government hopes the public understands the intervention’s purpose is to stabilise prices and avoid complaints.
Regarding festive demand, Loke said service providers are adding extra flights for the Johor Bahru-Sibu route, even though it is not scheduled.
He added demand for flights to Sibu remains high as the airport serves as the main gateway to central Sarawak, including Sarikei and Kapit.
