Indonesian Political, Business & Finance News

MAS to hike domestic tariff

| Source: AFP

MAS to hike domestic tariff

KUALA LUMPUR (AFX-ASIA): Malaysian Airline System's request
for a hike in domestic airfares is inevitable but the government
has yet to decide on the quantum of the increase, New Straits
Times quoted Transport Minister Ling Liong Sik as saying.

Ling said higher airfares for both Malaysia Airlines' domestic
and international flights are unavoidable due to higher cost of
fuel.

He said the government has no control over the airline's
decision to raise international airfares.

On Thursday, it was reported that airlines across Asia are
planning to raise airfares to offset higher fuel costs.
Malaysia Airlines is reportedly raising airfares for
international travel by between 10-30 percent next month.

Separately, The Star newspaper quoted Ling as cautioning
Malaysia Airlines not to impose airfares which are above market
rates.

On British Airways' decision to halt London-Kuala Lumpur
flights beginning April 1, Ling said it will not reduce the
number of tourist arrivals into the country, including those from
Britain.

Malaysia Airlines should take the opportunity to increase its
flights to Britain as "British Airways' 100,000 annual passengers
now need to seek other airlines", he added.

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