Airfare cap to be extended to four days
SEPANG: The government has extended the subsidy to cap airfares at RM499 during festive seasons from three days to four days, starting this Christmas.
Transport Minister Anthony Loke said this covers flights between Peninsular Malaysia and Sabah or Sarawak.
“We anticipate more people travelling over the weekend, so the subsidy will now cover four days (before the festive dates). This involves setting a maximum fare for airlines.
“The subsidy will enhance convenience and provide passengers with more competitive and affordable fares.
Festive joy: Loke speaking during the launch of AirAsia’s fixed fare initiative for Chinese New Year in Sepang. — Bernama
“We hope it will benefit more Malaysians,” he said after the launch of AirAsia’s fixed fare initiative for the Chinese New Year celebration at AirAsia RedQ here yesterday, Bernama reported.
Loke said extending the subsidy would incur an estimated additional government expenditure of RM20mil.
He said the Finance Ministry has allocated RM48mil to the Transport Ministry to support this initiative as well as the FlySiswa programme.
“On average, the subsidy for each passenger seat amounts to RM406.
“This year, we have spent nearly RM12.5mil.
“The Malaysian government is introducing this intervention to cap flight ticket prices during festive seasons, recognising that prices often spike due to the dynamic pricing mechanism,” he said.
