PUTRAJAYA: The Cabinet decided to lift the floor price for Malaysia Airlines in the interest of the public and for the development of the country’s aviation industry.
Transport Minister Datuk Seri Chan Kong Choy said the decision made two weeks ago had created fair competition between MAS and low-cost carrier AirAsia, which did not have a floor price.
He added that the Cabinet also decided that the national carrier would fly three more domestic routes – Johor Baru-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan as – part of its new aviation policy.
Chan said AirAsia should not have anything to complain about as the Government was being fair and transparent.
He said AirAsia could, nevertheless, bring its grouses to the ministry.
“I do not want to have an open debate with any party, but this (decision) is for the people.
“Although the Cabinet decision is final at this point of time, we are ready to meet and listen to AirAsia’s grouses,” he told reporters after a post-Cabinet meeting.
The Government reversed an earlier decision to impose a minimum floor price on MAS for its 22 domestic routes from Aug 1 as part of the rationalisation of the domestic routes to allow AirAsia to take over the bulk of the local flights.
Previously, under the Feb 27 agreement between the two airlines, MAS was not allowed to sell its tickets below certain prices.
AirAsia chief executive officer Datuk Tony Fernandes had said that the lifting of the floor price caused unfair competition, claiming that the rationalisation process was to keep two different markets.
Transport Minister Datuk Seri Chan Kong Choy said the decision made two weeks ago had created fair competition between MAS and low-cost carrier AirAsia, which did not have a floor price.
He added that the Cabinet also decided that the national carrier would fly three more domestic routes – Johor Baru-Kuching, Kuala Lumpur-Tawau and Kuala Lumpur-Sandakan as – part of its new aviation policy.
Chan said AirAsia should not have anything to complain about as the Government was being fair and transparent.
He said AirAsia could, nevertheless, bring its grouses to the ministry.
“I do not want to have an open debate with any party, but this (decision) is for the people.
“Although the Cabinet decision is final at this point of time, we are ready to meet and listen to AirAsia’s grouses,” he told reporters after a post-Cabinet meeting.
The Government reversed an earlier decision to impose a minimum floor price on MAS for its 22 domestic routes from Aug 1 as part of the rationalisation of the domestic routes to allow AirAsia to take over the bulk of the local flights.
Previously, under the Feb 27 agreement between the two airlines, MAS was not allowed to sell its tickets below certain prices.
AirAsia chief executive officer Datuk Tony Fernandes had said that the lifting of the floor price caused unfair competition, claiming that the rationalisation process was to keep two different markets.
Source: The Star
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