Malaysia’s transport minister encourages airlines to set lower fares during Christmas

Anthony Loke, Malaysia’s Transport Minister, has asked domestic airlines to fix or lower their costs for the approaching holiday season in order to better serve the public.

Wednesday (Dec. 28) at an event at the AirAsia headquarters, the budget airline said that it will operate additional flights at fixed rates to accommodate rising demand during the forthcoming holiday season.

From January 17 to January 30, late-night flights from Kuala Lumpur and Johor Bahru will go to destinations in the states of Sabah and Sarawak. Depending on the destination, fares will be regulated at RM199 (US$45) or RM249 per passenger.

“Despite their operating restrictions, we are glad that AirAsia is committed to assisting the government’s initiative to reduce fares during the crucial holiday season.”

“I urge other airlines to adopt the same approach or other initiatives that can cut airfares, particularly during the holiday season. As we usher in the new year, we look forward to continuing to collaborate with industry leaders like AirAsia to meet the requirements and promote the welfare of the people,” added Mr. Loke.

Simultaneously, the member of parliament for Seremban stated that the government has no intentions to fix air ticket rates since it is sure that the aviation sector would improve next year as a result of China’s reopening of its borders.

The minister was quoted by the Malay Mail as saying that putting price caps for flights would have a negative impact on the airlines due to the dynamic nature of such rates.

According to Mr. Loke, the price caps will have “bad ramifications” for passengers, since airlines may choose to restrict capacity.