LANGKAWI – The travel trade community here has urged the Transport Ministry to consider subsidising airfares for passengers who need to fly for work, medical and personal reasons.
Rather than a blanket airfare structure, which some air travellers find to be extremely costly, travel operators in Langkawi are urging a relook at how fares are computed by airlines.
This is especially for those living on the duty-free island who face logistical nightmares due to the low tide phenomenon affecting travel from its two main gateways – Kuala Kedah and Kuala Perlis – said Tropical Charters Sdn Bhd managing director Datuk Alexander Issac.
Both jetties there cannot function 100% due to the low tides and in some instances, become completely paralysed, Issac said, adding that ferry operators are losing money fast.
Therefore, there is a need for the authorities to step in, and perhaps introduce a different fare structure for tourists and local residents.
Ferry operators have been doing this, he noted, and it should also be applicable to airlines, especially for places which rely on air travel.
“They could also offer cross subsidy packages – anything to help alleviate the pressure of high fares on the working class,” Issac said.
Kuala Perlis had just reopened its jetty after shutting it for three consecutive days due to low tide. Dredging works to deepen the sea bed there have yet to be completed.
“We are encouraging tourists to fly rather than take the ferries during the low tide. Surely, the increase in load factor will help airlines to meet the demand.
“Despite record sales, they don’t bother to think of passengers who need to fly due to needs rather than for recreation,” Isaac said.
Furthermore, if there is a pent-up demand, the airlines should increase their flight frequencies. Isaac noted how Langkawi used to have up to 30 flights daily, now this is down to 18.
By anecdotal accounts, the majority of airlines are offering steep rates beyond the reach of lower-income earners, travel operators said.
Ahmad Pishol Isahak, who heads an action group of 13 travel sector lobbyists, said the new federal government should have travel and tourism policies that are solution-based.
“We cannot be short-changed by steep air fares. Airlines and the government must come together to find solutions.”
He claimed that travelers are put off by the steep air fares and in Langkawi’s case, there are no other options besides air and sea routes.
Pishol added that he was upset hearing a remark by AirAsia’s Tan Sri Tony Fernandes in a recent interview with Bloomberg Television, in which he said high air fares are “here to stay” as they reflect “real fares”.
“I think airlines have always under-priced their product. People are getting a little bit of a shock because they see prices a bit higher – but really, we’ve been behind the curve on that as an industry,” Fernandes had said.
Airlines around the world have pushed up fares as demand outstrips supply following rapid rebounds in travel after the Covid-19 pandemic’s restrictions.
Pishol said that now is not the time to be boosting profit margins. Instead, airlines should also play a part in stimulating the environment to ensure that tourism reaches its pre-pandemic levels.
“Airlines must work on a sustainable tourism model instead of just thinking about the present boom. Work with the travel community to ensure fares are affordable at all times.”
If it is affordable, more passengers will naturally utilise the service and in the long-term, airlines will benefit, Pishol said. – The Vibes, March 6, 2023.
