No lift to aviation sector from Malaysia-Indonesia travel bubble


“We look forward to seeing the opening of borders between Malaysia and Indonesia and anticipate that this would facilitate the movement of business travellers between the two countries, ” said MACEOS president Francis Teo (pic) in a statement.

PETALING JAYA: The travel bubble between Malaysia and Indonesia would not have significant impact on the aviation sector as strict travel conditions may limit passenger traffic.

It was reported that Malaysia has been given the green light by Indonesia over a Reciprocal Green Lane/Travel Corridor Arrangement (RGL/TCA) travel bubble between both nations.

A bank-backed research analyst told StarBiz the travel bubble was likely to have strict conditions and limitations for travellers, and hence, the positive impact to the aviation sector and companies like AirAsia Group Bhd and Malaysia Airports Holdings Bhd would be relatively immaterial.

“The global Covid-19 vaccination rollouts paint a more positive outlook for the aviation sector, enabling potential recovery in air travel demand when borders open, ” said the analyst, who also cautioned that there are still uncertainties and risks pertaining to the effectiveness of the vaccinations.

Meanwhile, the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS) also welcomed the news of the agreement.

“We look forward to seeing the opening of borders between Malaysia and Indonesia and anticipate that this would facilitate the movement of business travellers between the two countries, ” said MACEOS president Francis Teo (pic) in a statement.

Teo noted that for the RGL/TCA to work, details of the initiative would need to be identified properly when it is implemented once the situation in both countries improves.

He suggested for airports and immigrations to look into providing permanent special lanes and counters dedicated to these travellers to facilitate their movement upon arrival.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

aviation , Malaysia , Indonesia , travel , AirAsia ,

   

Next In Business News

Gamuda rises in early trade following record-breaking earnings in FY22
Turkish, Malaysian exports to enjoy duty-free treatment effective Jan 1, 2023
China's Sept factory activity contracts more sharply as demand slumps - Caixin PMI
Ringgit opens higher vs US dollar for second consecutive day
Selling persists on Bursa as recession fears spike
Trading ideas: Gamuda, Poh Huat, Aeon Credit Service, Hiap Teck, Scientex, Gadang, KNM, Heng Huat and UEM Edgenta
Reservoir Link secures well-test job
Gadang wins RM188mil PWD contract
Gamuda bullish about prospects
Pound may need to fall to plug the hole of UK’s international debt

Others Also Read