By Wilfred Pilo
KUCHING, April 23: Exorbitant flight ticket prices is behind Sarawak’s decision to have its own boutique airline, says Minister of Tourism, Creative Industry And Performing Arts Dato Sri Abdul Rahman Hamzah.
He said presently, soaring flight ticket prices are determined by the market forces of supply and demand and that airline companies could profit from it at the expense of customers.
“That is why we need our airline after what we are experiencing (exorbitant prices) now.
“If we let go of this opportunity since we have been given a green light by the federal government, then we cannot control price escalation in the future as it works on supply and demand.
“So now we are at the mercy of other airlines. We have no choice unless there is another mode of transportation like ferry as we live on an island.
“Now people have to fly to Sarawak and pay whatever price determined by the airlines due to market forces,” he said.
He told reporters this when met at his Hari Raya Aidilfitri open house at his residence along Jalan Astana today.
Abdul Karim said an airline must be able to manage the business systematically without incurring losses and should not simply increase prices.
“Public transportation would be supported and subsidised by the government
“The airline industry should not allow market forces to determine supply and demand like selling air tickets as they wish.”
Abdul Karim said Sarawak having its own airline will allow the government to intervene and set prices.
“It is better to have a competitive market which is not solely dictated by a few players in the industry.
”So I see that what the Sarawak government desires in setting up an airline is enticing and the federal government should agree.”
Abdul Karim noted much work would need to be done so that the boutique airline can be developed and operated systematically because the air travel industry is very challenging.
“We must have a good intention to give comfort to the people. It is not easy. As long as we can break even, but the benefit is for the people, he said. — DayakDaily
