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Ministry of Transport Addresses Unauthorized AirBorneo Ticket Resales

Kuala Lumpur:The Ministry of Transport (MOT) is actively discussing measures to address the unauthorized resale of AirBorneo flight tickets by third parties. This practice could potentially lead to higher prices and hidden charges for consumers.

According to BERNAMA News Agency, Deputy Transport Minister Datuk Hasbi Habibollah stated that the issue is already known to the Civil Aviation Authority of Malaysia (CAAM) and is currently being deliberated at the ministry level to protect consumer interests. The ministry aims to prevent third-party involvement in ticket sales, as similar issues have adversely affected consumers with other airlines in the past.

In response to an original question from Datuk Larry Soon @ Larry Sng Wei Shien (PBM-Julau), Hasbi acknowledged that rising global fuel prices have impacted flight frequency. However, the entry of AirBorneo has increased feeder flights and reduced fares offered by other airlines. To maintain service continuity in remote areas of Sabah, Sarawak, and Labuan, the federal government provides an annual subsidy of RM209 million to AirBorneo for the operation of Rural Air Services (RAS).

Hasbi emphasized that as the RAS operator under the Public Service Obligation (PSO), AirBorneo is prohibited from charging fares above the set price ceiling. Fares for the 39 RAS routes have a ceiling ranging from RM30 to RM243, depending on the route. The CAAM, acting as the advisor, administrator, and manager of RAS, continuously monitors compliance with RAS operations. The ceiling price structure will be reviewed periodically to ensure affordable air service accessibility in rural areas.

The interim RAS agreement, signed on December 18 last year, will expire on December 31, with a new agreement anticipated by the end of this year. Since July 20, AirBorneo has been operating 14 flights a week on the Kuching-Kuala Lumpur route, using Boeing 737-800 aircraft. Economy fares are RM375 one-way, while business class fares start at RM800. The airline plans to increase flight frequencies and introduce new routes in stages, depending on market demand and aircraft availability, with commercial operations fully funded internally.

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