According to Transport Minister Anthony Loke, airlines find it almost impossible to manipulate prices for their own gain due to close monitoring of flight ticket subsidies. The Malaysian Aviation Commission (Mavcom) closely monitors airfares during festive seasons and keeps track of exactly how many seats are being sold by all airlines.
Loke emphasized that the government is vigilant about spending money and has measures in place to prevent airlines from exploiting the system. He said, “The pricing is being monitored by Mavcom and we know exactly how many seats they are claiming.” A thorough audit process is also implemented to check all airlines’ subsidy claims.
Loke also mentioned that the ministry is aware of the details of each particular flight, including the number of seats sold and at what price. The airlines cannot manipulate prices as they have an algorithm and pricing mechanism that cannot be easily hidden from the government.
Loke made these comments at the launch of AirAsia fixed fares for the Chinese New Year festival in February. The fixed fares apply to specific routes and are available for purchase from Jan 5 to Feb 15, for the travel period of Feb 5-15. Subsidised airfares aim to bridge the travel gap between Peninsular Malaysia and the Borneo states.
Loke explained that the government introduced a price cap of RM599 on flights between the two regions during festival seasons, starting from Christmas last year. This cap will apply not only during the coming Chinese New Year but also during Hari Raya Aidilfitri, Kaamatan, and Gawai.
Aside from the subsidised airfares, Loke mentioned that AirAsia operates 408 flights per week at regular prices to Sabah, Sarawak, and Labuan in support of the government’s festive season initiative. There are also 134 late-night flights at fixed low fares to seven popular destinations in Sabah and Sarawak.
During the event, AirAsia Aviation Group chief executive officer Bo Lingam shared that 25,000 seats were allocated for the upcoming festive period. He advised passengers traveling during the festive season to self check-in using the airasia Superapp, available as early as 14 days before the departure date, and to use e-boarding passes.
