KUALA LUMPUR: The government will not set any ceiling price for domestic flight tickets from Peninsular Malaysia to Sabah and Sarawak to avoid manipulation by airlines, Deputy Transport Minister Hasbi Habibollah said today.
According to him, a study conducted by the Malaysian Aviation Commission (Mavcom) found that most civil aviation authorities in other countries do not control the price of flight tickets, for both international and domestic routes.
“Countries that imposed price control on flight tickets, such as in Indonesia, have seen negative implications, such as an increase in the average price of tickets,” he said during question time in the Dewan Negara.
“In such situations, airlines are found to have taken advantage of the ceiling price set by the government for the purpose of maximising profit, even during non-peak periods.”
Hasbi was replying to a question from Nuing Jeluing, who wanted to know if the government would set a ceiling price for flight tickets.
Hasbi said the government had also instructed Mavcom to carry out ongoing monitoring of rates charged by airlines and hold discussions with them to ensure competitiveness.
He also said prices of flight tickets were expected to return to normal by November.-FMT