KUALA LUMPUR: Subsidised one-way airfare between Peninsular Malaysia and the Bornean states will continue for Christmas, says Transport Minister Anthony Loke.
This year, the ceiling price for festive season airfare has been set at RM499 one way.
"Last year, the ceiling price was set at RM599 for the three days preceding each festive season.
"Any cost exceeding this ceiling price was fully borne by the government, excluding taxes and fees," he told told the Dewan Rakyat on Wednesday (Nov 5).
He said that this year, the ceiling price was reduced to RM499 and the subsidy period was extended to four days before each festive season.
"If ticket prices do not reach the ceiling price, they are sold at the prevailing market rate," he added.
He said the government has allocated RM19.5mil for this initiative to subsidise 39,744 flight tickets. This works out to RM491 per ticket.
"The average actual price is RM990. The subsidy has been implemented for Chinese New Year, Hari Raya Aidilfitri, Gawai Dayak, and Kaamatan, and will continue for Christmas next month," he said.
Last year, the ministry spent RM11mil to subsidise 26,993 flight tickets priced above the RM599 ceiling, Loke said.
"The Transport Ministry acknowledges that some passengers may be unaware of the significant subsidies provided by the government when purchasing their festive season flight tickets.
"It welcomes suggestions from the Honourable Members and will discuss with airlines to identify the best mechanism for informing passengers about the amount of the subsidy," he said.
Vivian Wong (PH-Sandakan) had asked about the average cost of a one-way ticket from Kuala Lumpur to Tawau, Sandakan, and Kota Kinabalu during festive seasons and if the government’s RM499 maximum fare programme has been implemented.
On extending the FlySiswa initiative to students of private education institution, he said cost is a factor that the ministry had to consider.
He said the ministry initially raised funds for the initiative through the sale of special vehicle registration numbers and it was later included in the budget through the Finance Ministry.
"It's not that we don’t want to, but we have financial constraints. The cost per person is RM400 and the numbers are huge. It costs RM40mil for 100,000 people.
"We will look at ways to expand this to private institution students who are really in need," he added.
Under the FlySsiswa programme, eligible students are provided with a digital voucher, known as a credit shell.
This voucher can be redeemed for domestic flights between the peninsula, Sabah, Sarawak, and the Federal Territory of Labuan.
