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Government decides not to introduce ceiling price for airfares | New Straits Times

KUALA LUMPUR: The government has decided not to introduce ceiling price for airfares as it will bring detrimental effect to consumers in the long run.

Transport Minister Anthony Loke Siew Fook said a study undertaken by the Malaysian Aviation Commission (Mavcom) has shown one-way domestic airfares has been on the decline over the past few years.

“Average one-way domestic airfares in Malaysia have been declining over the past few years and we do not want to reverse the impact if we start to introduce ceiling prices for airfares.

“The ceiling price introduction will not only bring down airfares during peak season, but could potentially increase airfares during non-peak season — and we do not want that to happen,” he told a media briefing here today.

Average one-way domestic airfares in Malaysia have been declining to RM214 in May 2018 from RM251 in January 2011, Mavcom study showed.

The commission said out of the 46 domestic routes analysed, 39 routes had airfares during peak seasons with price multipliers of between 0.8x and 3.0x.

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Government decides not to introduce ceiling price for airfares | New Straits Times | Malaysia General Business Sports and Lifestyle News.

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