Transport Ministry reviews measures against unauthorised AirBorneo ticket resales, while maintaining affordable rural air services through RM209 million in annual subsidies
KUALA LUMPUR: The Ministry of Transport (MOT) is discussing measures to address the unauthorised resale of AirBorneo flight tickets by third parties, a practice that could lead to consumers facing higher prices and hidden charges.
Deputy Transport Minister Datuk Hasbi Habibollah said the matter is known to the Civil Aviation Authority of Malaysia (CAAM) and is being deliberated at the ministry level to safeguard consumer interests. “We do not want third parties involved. We have experienced this before with another airline, where third parties sold tickets, sometimes to the detriment of the consumers themselves.
“So, God willing, the matter is under discussion, and action will be taken if necessary,” he said in the Dewan Rakyat today while responding to a supplementary question from Khairil Nizam Khirudin (PN-Jerantut) regarding the ministry’s enforcement actions concerning such activities.
Responding to the original question from Datuk Larry Soon @ Larry Sng Wei Shien (PBM-Julau), Hasbi said rising global fuel prices affect flight frequency, however, the entry of AirBorneo has helped increase feeder flights and driven down fares offered by other airlines.
He said that to ensure the continuity of services to remote areas in Sabah, Sarawak, and Labuan, the federal government allocates an annual subsidy of RM209 million to AirBorneo for the operation of Rural Air Services (RAS).
Hasbi noted that as the RAS operator under the Public Service Obligation (PSO), AirBorneo cannot charge fares exceeding the set price ceiling, fares for the 39 RAS routes are subject to a ceiling ranging from RM30 to RM243 for the base fare, depending on the route.
“The government, through the Civil Aviation Authority of Malaysia (CAAM) which acts as the advisor, administrator, and manager of RAS will continuously monitor compliance with RAS operations.
“A review of the ceiling price structure will be conducted periodically to ensure the accessibility of air services in rural areas at reasonable and affordable fares,” he said.
According to him, the interim Rural Air Services (RAS) agreement signed on Dec 18 last year will expire on Dec 31, while a new agreement is expected to be signed by the end of this year.
Hasbi said AirBorneo has been operating 14 flights a week on the Kuching-Kuala Lumpur route since July 20, using Boeing 737-800 aircraft with a 162-seat capacity; economy fares are RM375 one-way, while business class fares start at RM800.
He added that the company plans to increase flight frequencies and introduce new routes in stages, based on market demand and aircraft availability, with commercial operations fully funded through internal resources.
