KUCHING: The capping of airfares at RM599 for one-way economy class flights from the peninsula to Sabah, Sarawak, and Labuan for travel on the three days before Hari Raya Aidilfitri this year is more appropriate than subsidising flights.
In stating this, Dr Dzul Hadzwan Husaini, a senior lecturer at Universiti Malaysia Sarawak’s Faculty of Economics and Business said this is because subsidising has sometimes proven ineffective in reducing airfares during peak seasons or celebrations.
“This maximum fare method allows airlines to compete fairly and ensures that consumers benefit from slight reductions in airfare.
“Airlines will be motivated to offer the best fares to consumers to become their preferred choice,” he said on Saturday.
Earlier, Transport Minister Anthony Loke announced the initiative stating that the government aims to assist Malaysians who need to travel to their hometowns in Borneo during festive seasons.
Dr Dzul said with the full acquisition of MASwings by the state government, airfare prices are expected to be more stable.
“Other airlines will surely compete to offer cheaper fares in response to MASwing’s state government ownership.
“I hope the implementation of this maximum fare regulation will also be extended to other peak times, such as school holiday seasons,” he said.
