CEO Morning Brief

Aidilfitri: Two-week Flight Ticket Subsidy Would Pose Significant Costs, Says Loke

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Publish date: Wed, 28 Feb 2024, 04:21 PM
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TheEdge CEO Morning Brief

LANGKAWI (Feb 27): The request for the three-day period of a maximum fare of RM599 for one-way economy class flights from Peninsular Malaysia to Sabah, Sarawak, and Labuan, in conjunction with Aidilfitri, to be extended to two weeks will incur significant costs, said Transport Minister Anthony Loke Siew Fook.

Loke reiterated that the initiative, which also applies to other festive seasons, was undertaken by the Ministry of Transport, with no specific funding from the Treasury.

“Of course. That is what I want to do throughout the year (to provide subsidised fares).

“However, it is a cost that the ministry has to bear,” he told the media, after officiating the Routes Asia 2024 at the Mahsuri International Exhibition Centre here on Tuesday.

“Even for three days, it costs us a few million ringgit every time we cap [airfares]. So, I understand the sentiment, but it is a limitation that we face, and in terms of financial resources, it won’t be enough to cover [the cost of subsidising airfares for two weeks],” he added.

On Saturday, Loke announced that the government had set a maximum fare of RM599 for a one-way economy class flight from the peninsula to Sabah, Sarawak, and Labuan, applicable to travel three days before Aidilfitri.

He said that this initiative is part of the government's efforts to assist people in travelling back to their hometowns for Aidilfitri in April.

On Monday, Consumers Front of Sabah appealed to the government for the three-day period of a maximum fare of RM599 to be extended to two weeks, to allow more residents from the three regions to enjoy reasonable flight ticket prices when returning to their hometowns.

It is also of the view that the three days set to implement the maximum price of flight tickets for Aidilfitri are not enough, because not everyone could take an early holiday, as some would have to work during the festival, and could only return to their hometowns afterwards.

Source: TheEdge - 28 Feb 2024

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