Low-cost carriers choking the people with high ticket prices

Amin Iskandar Amin Iskandar Updated 6 years ago · Published on 19 Mar 2018 12:10PM · 4 Comments

A BARISAN Nasional MP said today low-cost airlines do not really offer cheap travel but are choking the people instead with their “over-the-top” price.

Othman Abdul (BN-Pendang) said the ticket prices remain high even with advanced purchase.

He cited the example of Kuala Lumpur or Subang to Alor Star, which costs RM700 one way.

“The normal price is RM190 one way,” he said during additional questions posed during sitting today.

Othman asked if the Transport Ministry has the power to control the ticket price of low-cost carriers to reduce ticket prices.

Deputy minister, Ab Aziz Kaprawi, said the government will enforce a ceiling price for domestic flights to tackle price hikes during the festive season.

The study on ceiling prices is being conducted by Malaysian Aviation Commission (Mavcom) and expected to be completed before mid-year.

The government as a rule did impose any regulation on ceiling prices and allowed an airline to set its own ticket price based on commercial decision.

However, he said, Mavcom has the power to intervene in matters involving airline competitiveness.

“In this regard, an airline will fix the ceiling price by taking into account market demands, fuel and operational costs.

“Because of complaints about expensive tickets during the festive season, Mavcom has been asked to conduct a study on the ceiling price of flight tickets that is expected to be completed before mid-2018.

“Mavcom is now working on a plan to put a ceiling for domestic routes,” he said in respond to Oscar Ling (DAP-Sibu), who asked about the government’s steps to tackle expensive flight tickets for the KL-Sibu route during the festive season.

Ab Aziz advised the public to plan their holidays and to buy tickets early to avoid paying a premium. – March 19, 2018.

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Comments

  • have u even taken economics 101? free market is more efficient than one that is manipulated. govt only interested in protecting MAS, a failed airline that everyone in the WORLD is afraid of flying because it sucks.

    Posted 6 years ago by Tommy richard · Reply

  • why only control low cost airline that also only the local low cost carriers. What about other low cost and for that matter all other airlines. As long as the airlines do not collude to fix prices they should allowed to operate freely because during low traffic season they have to bear the losses. Also airline is a high risk business. So they must sufficient incentives to operate. Will the people or the government willing to save a private airline.?

    Posted 6 years ago by Saham san · Reply

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