SEPANG (June 24): The government welcomes any move by local airlines to increase the size of their fleet as that would lead to more competitive airfares, said Transport Minister Anthony Loke.

He said this is because airfares have dynamic pricing and the government has no control over their pricing, except for domestic travel during festive seasons in the country.

“We already have a policy during the festive season whereby there is a cap in terms of pricing and the government subsidises it, but in terms of international travel, there is no such (subsidy) mechanism.

“The way to resolve the issue of high airfares is to provide more supply... so when there is more competition there will be more supply in the market, then definitely the market will adjust itself,” he told the media after witnessing the signing of a memorandum of understanding between Batik Air and Kia to offer private terminal transfer service here on Monday.

Loke said this in response to concerns that current high airfares are here to stay post-pandemic as travel booms. “So I am pleased to hear that Batik Air is increasing its fleet. They are (adding) another 20 aircraft in the next six months so by the end of this year they will have 50 aircraft servicing the Malaysian market,” he added.

Batik Air today signed a memorandum of understanding (MOU) with South Korean automobile manufacturer Kia for its new private terminal transfer service, designed exclusively for business class passengers.

The airline will enhance the travel experience for both its Business Class Promo and Flexi passengers by offering a premium transfer service between the Main Terminal Building and the Satellite Building of KLIA Terminal 1.

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