THE market for domestic air travel will take 18 months to recover from the impact of the coronavirus pandemic while the international air travel market will take three years to fully return to normal, Transport Minister Wee Ka Siong said.

He said the Malaysian Aviation Commission (Mavcom) expected flight tickets to return to pre-Covid-19 prices by November.

This is when the airlines resume operating at normal capacity, he said.

“This also depends on the Covid-19 situation.
 
“We have instructed Mavcom to carry out continuous monitoring of fares charged by the airlines and to hold engagement sessions to ensure the fares are competitive,” he said in Dewan Rakyat today. 

Wee was responding to Lukanisman Awang Sauni (Sibuti-GPS) who asked about the costly flight tickets for travel between Sabah and Sarawak to Peninsular Malaysia.

“When will be air fares become affordable again?,” Lukanisman said.

Wee said Mavcom has found the June-July rates of air tickets, especially for flights between the peninsula and Sabah and Sarawak, to be reduced compared to May 2020.

“As for travel for July 2020, Mavcom found the fares remained stable and almost equal to the average prices in 2019.

Wee said Mavcom has found the June-July rates of air tickets, especially for flights between the peninsula and Sabah and Sarawak, to be reduced compared to May 2020.

“As for travel for July 2020, Mavcom found the fares remained stable and almost equal to the average prices in 2019.

“For example, a one-way ticket from Kuala Lumpur-Kuching now costs from RM200 to RM400 compared to the June price of more than RM1,000.

He advised people to plan ahead and buy their flight tickets well in advance to enjoy cheaper rates.

“Fare pricing is based on the rationalisation of the domestic air services sector in 2006.

“In this regard, the government has decided that national airlines providing domestic air services are given the freedom to determine the network coverage, frequency of flights and fares to be offered based on market demand.”

Wee said he has met with Malaysia Airlines, AirAsia  and Malindo Air to discuss the problem of rising fare prices.

“During the meeting, airlines were asked to consider lowering their fares in line with the government’s decision to exempt social distancing on board aircraft.

“According to the airlines, the exemption does not mean that prices will go down immediately.”

He said the airlines need to be sure of continuous and stable demand before they can revise the ticket rates.

He said airlines also practised the concept of cross-subsidisation which depended on the size of their flight networks and demand for seats.

“Profitable flight routes will cover the operating costs of unprofitable routes.

“Through this concept, airlines are able to offer low flight prices that are affordable.” – July 21, 2020.