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KUALA LUMPUR: The government will not set any maximum price for domestic air tickets from Peninsular Malaysia to Sabah and Sarawak to avoid airline manipulation, 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 air tickets, both for domestic and international routes.
“Countries that imposed price controls on airline tickets, such as Indonesia, have seen negative implications, such as an increase in the average price of tickets,” he said during question time at the Dewan Negara.
“In such situations, airlines have taken advantage of the government’s maximum price in order to maximize profits, even during off-peak periods.”
Hasbi was responding to a question from Nuing Jeluing, who wanted to know if the government would set a maximum price for airline tickets.
Hasbi said the government had also instructed Mavcom to continuously monitor the fares charged by airlines and hold discussions with them to ensure competitiveness.
He also said that airline ticket prices were expected to return to normal in November.
