KUALA LUMPUR: There are no plans to introduce ceiling and floor prices for airfares, as such a move would go against the open economy concept practised by the country, Transport Minister Anthony Loke (pix) told the Dewan Rakyat today.
He said the country practises an open economy policy and it was best to leave it to market forces to decide prices, because placing a cap on flight fares is not feasible in a free market.
“The government has taken several measures to mitigate issues related to increase of air fares and the government even encouraged airlines to offer more flights during festive seasons as one of the mitigation measures,” said Loke.
He was responding to Datuk Ahmad Jazlan Yaakub (PAS-Machang) who asked whether the ministry would set ceiling and floor prices in its attempt to reduce air fares.
“The government through various agencies such as Malaysian Airports Holdings Bhd and Civil Aviation Authority Malaysia will give the support required by airlines to schedule more flights during holidays and festive seasons,” he added.
In addition, airlines were also required to offer some seats at a fixed rate during festive seasons.
Loke added there were no plans to build more low-cost carrier terminals (LCCTs) in the country as there was no demand for such airports.
Loke was answering a supplementary question raised by Wong Hon Wai (DAP-Bukit Bendera), who asked if the government had plans to build more LCCTs in other states.
