KUALA LUMPUR: The government has agreed to remove two routes under the Rural Air Services (RAS) involving Kota Kinabalu-Sibu and Kota Kinabalu-Bintulu, while classifying the routes as commercial, beginning January 1, 2019.
Transport Minister Loke Siew Fook said AirAsia Group Bhd would take over the two routes from MASWings Sdn Bhd, following the recent cabinet’s approval for the latter’s commercial flight operations.
“These two routes will be opened to commercial airlines after conducting a thorough research to achieve sustainability for the commercial airlines operations. This is to ensure the continuity of flight services for these two routes and won’t be affected,” he said at a press conference, here, today.
He said the low-cost carrier would begin serving these routes with 14 flights per week, while offering 2,520 seats or 165 per cent increased in seats on board of its A320 for each route. Flight bookings can also be made on December 5, 2018.
“MASWings will begin ceasing its operations for these two routes, starting January 1, 2019. The airline will also compensate the early purchased tickets to passengers for these routes today,” he added.
Previously, the routes were operated by MASWings via its ATR 72 aircraft with the availability of 952 seats per week.
Loke said the government would subsidise any losses in terms of the operations and differences under the RAS, which is currently being served by MASWings.
“At the moment, only AirAsia will begin its commercial flights for these two routes. We already signed an agreement with AirAsia. If they pull out, the airline has to compensate the government,” he said.
Loke reiterated that the government has taken out these two routes from the RAS agreement to allow commercial airlines to operate, citing that the routes are high in demand and considered as not rural areas anymore.
Loke pointed out that the government seeks to gradually reducing its RAS subsidy to maintain flight services to rural areas.
"The ceiling-price for RAS subsidy is expected to go down beginning 2020 on reduced operational expenditure by MASWings on these routes," he added.
Loke said the cabinet's approval would see the termination of the current operator, MASWings which supposedly ended by 2024.