Govt welcomes airlines increasing fleet size as it will lead to competitive airfares
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 the pricing of air tickets, except for domestic travel during festive seasons in the country.
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He said this is because airfares have dynamic pricing and the government has no control over the pricing of air tickets, except for domestic travel during festive seasons in the country.
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NewsTranscript
00:00YB, can I ask about the Asia CEO, he mentions that there is no end in the sign to the high airfare
00:08that are the mainstay of the world post-pandemic.
00:12So we want to know, can you comment about this?
00:16So now people very difficult to get, everyone can fly,
00:20and what is the MOT, is there any method that let everybody still can fly to
00:26oversee our nearby country or travelling?
00:30First of all, air tickets is dynamic pricing.
00:32The government does not control in terms of the pricing of air tickets,
00:38with the exception of domestic travel during 50th season,
00:41which we already have policies during 50th seasons,
00:44where there is a cap in terms of pricing, and the government subsidise it.
00:47So in terms of international travel, of course there is no such mechanism in terms of subsidising air travel.
00:54The way to, of course, resolve and to mitigate this high airfare,
01:00is to provide more supply.
01:02So when there are more competitions, more supply in the market,
01:06then definitely the market will adjust itself in terms of pricing.
01:09So I am pleased to hear, Batik is increasing their fleet,
01:13so they are increasing another 20 aircraft in the next 6 months,
01:17so by the end of this year they will have 50 aircraft servicing Malaysian market.
01:22So Batik Malaysia will have 50 aircraft by the end of this year.
01:25So when you have more aircraft, more competition,
01:28then definitely you will adjust by yourself.
01:30There will be more choices for the consumers.
01:32So the consumers can make comparisons in terms of which particular airline they choose.