KUALA LUMPUR: The government will periodically review the fare ceiling for Rural Air Services (RAS) to keep flights to rural areas viable and fares affordable, said Deputy Transport Minister Datuk Hasbi Habibollah.
He said the existing fare ceiling was based on a cabinet decision made on July 20, 2011, and remained in force.
"The ceiling price structure covers the base fare and excludes taxes, airport fees and fuel surcharges," he said in parliament today.
Hasbi said base fares for the 39 RAS routes ranged from RM30 to RM243, depending on the route.
Additional charges include a RM50 surcharge for ATR aircraft, RM20 for Twin Otter aircraft and an RM11 passenger service charge at airports and non-short take-off and landing (STOL) ports.
He said AirBorneo, as the RAS operator under the Public Service Obligation framework, was not allowed to charge fares above the established ceiling.
The Civil Aviation Authority of Malaysia (CAAM), which advises on, administers and manages RAS, would continue to monitor compliance with service requirements, he added.
Hasbi said the RAS agreement was being finalised and was expected to be signed by the end of this year. The agreement aims to ensure adequate flight capacity and competitive fares.
The federal government provides an annual subsidy of RM209 million to AirBorneo to cover RAS operating costs.
AirBorneo operates 14 dedicated turboprop aircraft for RAS, comprising eight ATR 72-500s and six Twin Otters.
Hasbi was responding to Datuk Larry Soon @ Larry Sng Wei Shien (PBM-Julau), who asked about AirBorneo's flight frequency and measures to ensure sufficient capacity and affordable fares, particularly in rural and remote areas of Sarawak.
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