KUCHING, Dec 9 — The Malaysian Aviation Commission (Mavcom) is expected to complete the rationalisation of rural air services (RAS) by the second quarter of 2022 (2Q22) as announced by Prime Minister Datuk Seri Ismail Sabri Yaakob recently.
Its spokesperson said the immediate rationalisation aims to mitigate the issue of overcapacity and low demand for RAS, which was mainly caused by the imposition of travel restrictions to curb the spread of Covid-19.
“The rationalisation exercise will ensure the optimisation of RAS routes and improved load factor, for a more efficient and effective RAS programme, moving forward,” the spokesperson told Bernama in an email interview.
At this juncture, there are no planned revisions to the current ceiling fare for flights within the RAS network, the spokesperson said, adding that there was also no reduction in the amount of RAS subsidy allocated by the government.
As announced in Budget 2022, the government will allocate a subsidy of RM209 million for RAS in Sabah and Sarawak, which was the same amount allocated for RAS in 2020.
The spokesperson said the imposition of travel restrictions to curb the spread of Covid-19 has significantly reduced the demand for RAS in 2020 and 2021 and has caused RAS operations to be scaled down, with suspended routes and reduced flight frequencies.
“Hence, the rationalisation of the RAS operations is required to ensure the optimisation of RAS routes and improved load factor, for a more efficient and effective RAS programme, moving forward.
“Besides the rationalisation exercise, Mavcom continuously monitors the progress of RAS, as well as conducts an ongoing, yearly review of the RAS network to develop long-term recommendations for future policies, in accordance with Section 68 of the Malaysian Aviation Commission Act (Act 771),” the spokesperson said.
Under Act 771, Mavcom is empowered to administer and manage Public Service Obligation (PSO) schemes in the aviation industry in Malaysia, which include RAS.
The government, in particular the Ministry of Transport, remains the principal policy decision-maker.
Recently, the Prime Minister announced that the government through Mavcom will undertake the rationalisation of RAS in Sabah and Sarawak, which are operated by MASwings.
Ismail Sabri said this is part of the government’s efforts to ensure this facility could be enjoyed by rural residents at the best possible level.
The Prime Minister said the rationalisation would involve a review of RAS’ objectives, the financial implications, routes and flight frequency, fare rates, aircraft deployed and a mechanism for giving subsidies to users of RAS from time to time.
Mavcom said the airfares for RAS routes were based on the ceiling price approved by the government in 2011 to prioritise the needs of the people and reduce the burden of those living in rural areas within Sabah and Sarawak.
“Additionally, the cost for the operation of RAS by MASwings is fully borne by the government in the form of subsidies.
“Despite the increment of cost of RAS operations at this juncture, there are no planned revisions to the current ceiling fare for flights within the RAS network,” the spokesperson said.
— Bernama
