AirAsia and MAS domestic air routes issue settled

PUTRAJAYA: The issue of AirAsia’s unhappiness over the removal of the floor price for Malaysia Airlines domestic routes has been settled.

Transport Minister Datuk Seri Chan Kong Choy said all interested parties had accepted the Government’s decision as final.

“The issue has been settled. They are not unhappy now. We will continue to support MAS and AirAsia because both companies are important to Malaysia,” he told reporters after presenting the air operator certificate to Fly Asian Express (FAX) to take over MAS’ domestic flight operations within Sabah and Sarawak from Aug 1.

Chan also expressed his hope that FAX would be able to maintain good services for rural folk who had no alternative mode of transportation to their interior villages.

“We will monitor the fares so they are at reasonable rates because this is a necessary service,” he added.

FAX chief executive officer Raja Mohd Azmi Raja Razali said the airline would make sure that the operations on all 26 routes would go on smoothly.

“From Day 1 we will have 343 flights a week,” he added.

“After the three months, we will refine the network and how we can improve, and possibily expand into the BIMP-EAGA (Brunei, Indonesia, Malaysia and the Philippines-East Asean Growth Area).”

On the fares, Raja Mohd Azmi said they would be similar to AsiaAsia's offerings.

“People will still get low prices and there will be promotional prices as well,” he added.

FAX has seven Fokker 50 aircraft and five Twin Otters to serve the interior routes.

Source: The Star