PUTRAJAYA: The government has agreed to subsidise the purchase of economy class flight tickets exceeding RM599 for a one-way trip from the Peninsula to Sabah, Sarawak and Labuan for three days before Christmas.

Transport Minister Anthony Loke said the initiative will come into effect at 12.01 am (Dec 16) for Dec 22 to 24 flights.

He said the same subsidy will continue next year for Chinese New Year, Aidilfitri, Kaamatan festival, Gawai Day and Christmas, with tickets available for purchase starting at 12.01 am on Jan 1, 2024.

“However, the subsidy does not include taxes and fees,” he said at a press conference here today.

Loke said the subsidy was unanimously approved by the Cabinet on Dec 13 following complaints about the high prices of air tickets before the Christmas season, especially for people from Sabah, Sarawak and Labuan who live, work and study in the peninsula.

For economy class flight tickets that exceed RM599, Loke said the government will pay the price difference between the original price of the air ticket and the maximum price.

Citing an example, if the economy class flight ticket price is RM1,500 one way from Kuala Lumpur to Kota Kinabalu on Dec 23, the buyer will pay RM599 and the government will cover RM901.

Loke said the Malaysian Aviation Commission (Mavcom) was responsible for the secretarial and payment matters under the subsidy initiative.

Without disclosing the actual financial implications, Loke said the government will provide millions of ringgit for each festive season and the public can purchase air tickets through the websites of domestic airlines such as AirAsia, Firefly, Malaysia Airlines Bhd and Batik Air.

Meanwhile, Loke said Mavcom has facilitated 114 additional flights between the Peninsula and Sabah, Sarawak and Labuan.

He said the strategy has had a positive impact as fares from Kuala Lumpur to major destinations in Sabah and Sarawak have dropped between five and 33 per cent since this morning compared with last week.

 -- BERNAMA