Govt to review fare ceiling to keep rural flights affordable
KUALA LUMPUR: The government will periodically review the fare ceiling for Rural Air Services (RAS) to keep flights to rural areas viable and fares affordable, said Deputy Transport Minister Datuk Hasbi Habibollah.
The Malaysian government has announced plans to periodically review the fare ceiling for Rural Air Services (RAS) in order to maintain the viability and affordability of flights to rural areas, according to Deputy Transport Minister Datuk Hasbi Habibollah. The current fare ceiling, which was established in a cabinet decision made on July 20, 2011, covers the base fare and excludes taxes, airport fees, and fuel surcharges.
The base fares for the 39 RAS routes range from RM30 to RM243, depending on the route, with additional charges including surcharges for specific aircraft and a passenger service charge at airports and non-short take-off and landing (STOL) ports. The Civil Aviation Authority of Malaysia (CAAM) will continue to monitor compliance with service requirements.
The RAS agreement is being finalized and is expected to be signed by the end of the year, aiming to ensure adequate flight capacity and competitive fares. The federal government provides an annual subsidy of RM209 million to AirBorneo, the RAS operator under the Public Service Obligation framework, to cover RAS operating costs. AirBorneo operates 14 dedicated turboprop aircraft, comprising eight ATR 72-500s and six Twin Otters.
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