Govt strives for more competition in local aviation sector

KUALA LUMPUR: The government would not be protecting local airlines but rather encourage more competitions in the local aviation sector, said Transport Minister Loke Siew Fook.

Loke said fair competitions to all airlines would be beneficial to all sectors, which in turn would keep fares low and subsequently helpful passengers as well as reinvigorate the country’s tourism industry.

“We welcome competition and would like to see more competitions in the local aviation sector. We are not going to protect and don’t believe in protection. Instead we believe in competition. We want a competitive market, not a protective market,” he said after welcoming IndiGo’s inaugural flight at klia2, here, today.

He added that a fresh competition injection in the local aviation industry allow airlines to grow and improve their market share, reflecting transportation has played a key role in a nation’s economic development.

“I’m very confident that our local airlines can compete with the other international airlines, while adapting and pushing the limit higher. We don’t want to be confined to our own market,” he said, adding that every oncoming airline and flight would attract more tourist into the country (Malaysia).

He said bilateral trade between Malaysia and India are poised to reach about US$25 billion by 2020, citing that economic opportunities are increasingly related to the mobility of people, goods and information.

“Therefore, any new development in the expansion of route networks is highly welcome,” he said, adding that IndiGo would contribute to the increase of passenger movements at Kuala Lumpur International Airport (KUL).

He said Malaysia has received more than 1.4 million inbound passengers from India through local carriers last year.

Loke aspires to see the continued growth of Malaysian aviation and believes that the addition of India’s largest airline to the KUL’s family will help contribute to strengthening the airport’s and Malaysia’s position as a strong hub within the region.

He said currently Malaysian carriers provide 219 frequencies per week to 13 destinations in India, noting that the country has always been an attractive market to Malaysian carriers.

“Therefore it is without a doubt, with this twice daily flight from Delhi and Belanguru, not only will the number of passengers continue to grow but it will enable for both countries to further strengthen the tourism and economic sectors,” he said.

Malaysia Airports Holdings Bhd (MAHB) acting chief executive officer Raja Azmi Raja Nazuddin said India is one of the airport operator’s target destination markets in growing the connectivity at KUL.

In its traffic forecast for 2017-2040, Airports Council International projects that India will be the second fastest growing country in the world for passenger traffic at 7.5 per cent.

“Already our aeronautical charges are among the world’s lowest. This has no doubt encouraged many of our airline partners to increase their frequencies or introduce new routes, thereby contributing to Malaysia’s continuous growth in the aviation industry,” he said.

KUL registered 58.5 million passenger traffic movements last year. MAHB’s October data showed that in the last twelve-month cycle, KUL registered 59.8 million or a 3.3 per cent year-on-year increase.

International passenger traffic numbers at KUL make up more than 70 per cent of total passenger traffic.

Source: NST